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Boone County finance staff report $672,000 dip in assets and flag payroll-account discrepancy
Summary
County finance staff said assets fell $672,000 for the month as the county drew on liquid investments; staff reported a payroll checking account showing a false negative balance of about $322,000 that they are investigating.
Mister Newport, a county finance staff member, told the Boone County Finance Committee on Jan. 16 that the county’s assets fell by $672,000 in the most recent reporting period because the county spent more than it received and drew down liquid investments.
"Our assets are down $672,000, just because we spent more than we took in," Newport said, adding that most withdrawals came from the county’s investment pool.
The nut of the matter is liquidity and timing: finance staff said short-term accounts held a larger share of the county portfolio while the U.S. Treasury yield curve moved toward normal, and the county plans to ladder certificates of deposit as they mature to capture higher long-term rates.
"We had earnings interest revenue in December of $167,835," Newport said. He said the county’s investment pool is currently laddered about 33 months and that when CDs mature the plan is to reinvest farther out on that ladder to lock in rates around 4.4%.
Newport also raised a separate bookkeeping issue: the payroll checking account on the report shows a negative balance of about $322,000, which staff said is not accurate. "We believe it might have something to do with payroll transactions that are being posted twice, being posted once automatically by the system, and then posted again manually," he said. Finance staff said they will investigate posting procedures and reconcile the account.
Ms. Doble, who presented the administration monthly financial report for the general fund, said revenues remain ahead of budget despite seasonal slowdowns and noted the effect of payroll timing (three pay periods in December 2023 vs. two in December 2024) on year-over-year comparisons. She also updated the committee on ARPA spending: as of Dec. 31 the county had spent nearly $4.3 million with a remaining balance of about $6.1 million and $575,000 in generated interest.
Committee members asked follow-up questions about the payroll posting issue and about how the investment strategy will affect near-term liquidity. Newport told the committee staff will continue to monitor the ledger and report back.
The county’s finance staff said they will provide further reconciliation on the payroll-checking account and continue to present monthly investment and cash reports.
