Kane County treasurer defends 2023 transfers as finance director seeks explanation for reconciliation differences

Treasurer Chris Lawson told the Kane County Finance and Budget Committee on Feb. 26 that assets moved to a new custodian in April'023 were transferred successfully and that the county udit for that period is closed.

The exchange centered on continuing bank-reconciliation questions raised by Finance Director Kathy Hopkinson, who told the committee she has found unresolved differences dating to April'023 and has not received answers to questions she submitted Feb. 14. State's Attorney Jamie Mosser advised the committee that, under Illinois statute, the treasurer is meeting his legal duties and that the board — not staff — should make formal requests for additional records if it wants them.

Why it matters: The discussion focused on the county's accounting for transferred investments and whether additional review is needed after an audit was completed. Hopkinson said unexplained reconciling items could carry forward and asked for supporting documentation tied to journal entries. Mosser said the treasurer has complied with statutory reporting requirements and that the finance department ppears to have asked for information beyond what the treasurer is required to provide.

Lawson, who delivered a roughly 30-minute presentation, said the bulk of county investment assets moved from several broker custodians to U.S. Bank between April and June 2023 and that independent auditors and outside advisers reconciled the work. "The assets have transferred successfully. The audit is closed. Accounting gets everything we get," Lawson said during his remarks.

Hopkinson described the specific accounting concern for the committee. "When we book journal entries as accountants, you require supporting documentation. When there is no supporting documentation for a journal entry, that's kind of what is called, in the accounting world, a plug entry," she said, adding that one of the larger unresolved differences traces to April'023. She said the county's general ledger shows cost and market values for investments and that she wants to know whether differences arose from a change in amortization or from incorrect reporting by either the prior custodians or the new custodian.

State's Attorney Jamie Mosser told the committee the treasurer is "duly elected" and "has been compliant with the statute" requiring the treasurer to keep proper books and to file monthly reports. Mosser said the finance department's requests came from staff and that "if the county board is requesting this information, then it is the county board that should be making these official requests," not a department acting as an intermediary.

County staff mediator John Franks told the committee he had met with both sides and that, in his view, documentation requested from April 2023 had largely been provided. He said the board must decide whether to make a formal request: "The treasurer is obligated to answer such questions, but he is not obligated to answer questions to staff," Franks said. If the board formally requests the records, Franks said, the treasurer would be required to respond.

Board member John Gripe, who asked questions during the discussion, said he was "confused" about pursuing additional work after an audit was closed and the auditors characterized the discrepancy as de minimis.

No formal votes were taken on reopening the audit or directing additional action during the meeting. Committee members and staff agreed the board could decide whether to make a formal request for further investigation of the April'023 items.

The committee also heard Lawson iscuss other topics in his presentation, including staffing and the transfer process to a fiduciary standard; Lawson and Hopkinson disagreed publicly about the scope of records and explanations required for certain journal entries.

Looking ahead: The committee did not direct a formal board-level request during the Feb. 26 meeting. If the board chooses to ask the treasurer formally for additional documentation, Mosser said that step would bring the matter into the treasurer—oard reporting process and obligate a formal response from the treasurer's office.