Delegation approves parts of supplemental budget after heated ARPA accounting debate; asks auditor for clarification

Carroll County delegates recessed a lengthy public hearing on a supplemental budget after a contentious discussion about how roughly $7.4 million in unspent American Rescue Plan Act (ARPA) funds were moved into the county’s general fund and became part of an apparent undesignated fund balance.

Delegation members asked who authorized moving ARPA money into the county budget, whether the action followed county statute and Treasury guidance, and whether the move left the county at risk of a federal clawback. Multiple delegates pressed commissioners and staff for dates and who signed off on the transfers. Auditor Tammy Webb told the delegation she had been provided a set of expenditures and that, because the county faced a year-end obligation deadline, staff and the CFO used the federal "standard allowance" (revenue-replacement option) so the county would not forfeit unspent ARPA funds. Webb said she performed testing on selected nursing-home payroll and agency/registry costs and had incorporated that work into the 2024 audit procedures.

Delegates repeatedly requested documentary proof of the timeline and authorization that led to the journal entry. Several members, including Representative Cordelli and Representative Brown, said they had expected the delegation to see a formal transfer or supplemental budget action before money appeared in the undesignated fund balance. The auditor said the journal entry was made in March during audit close procedures after the expenditures had been incurred in 2024; she said she could reverse the entry if the delegation provides written contracts or obligations that should have kept funds off the general balance.

Because delegates could not reconcile the accounting steps from the materials available at the meeting, Representative Smith moved that the delegation request a signed, on-letterhead clarification from the county auditor documenting the dates, authorizations and accounting treatment for the ARPA funds and confirming compliance with law and Treasury guidance. That motion passed 14–1.

After the auditor joined the meeting and answered questions, the delegation proceeded through supplemental budget line items. Delegates approved a series of supplemental appropriations and a revised total revenue/expenditure figure for the 2025 budget. During the meeting delegates approved multiple line items (examples below), and then approved a revised revenue total of $46,217,047 and the corresponding expenditure total; those final totals passed on recorded votes (each passed 10–0 in the transcript), after which the delegation recessed the supplemental hearing and authorized the delegation’s Executive Committee to work with the commissioners to finalize projects and funding (motion passed 9–0).

What delegates asked and what the auditor said - Question: Why did the county show an $18.9 million undesignated fund balance? Auditor Tammy Webb said an accounting/journal entry during audit close combined ARPA revenue replacement with appropriations that had lapsed, producing a higher undesignated balance; the auditor said she tested selected nursing-home payroll and registry expenses and that some ARPA funds had been used as revenue replacement rather than remaining in an off‑book ARPA account. - Question: Who authorized the journal entry? The auditor said the accounting adjustment was performed during audit close after discussions with county finance staff; she said she was told there were no active contracts obligating the ARPA balance at year-end, which informed the decision to use the standard-allowance revenue-replacement method. Delegates asked for written backup and for the exact dates and authorizing officials; the auditor agreed to provide documentation and a letter.

Votes and formal actions (selection) - Motion to request an on‑letterhead clarification from the auditor describing the transfers and accounting treatment: passed 14–1 (mover: Representative Smith). - Motion to approve supplemental budget line items 1–10 as presented (various operating and capital adjustments): passed 12–0. - Motion to approve additional line items 14 and 15 (nursing-home fire panel and related facilities adjustments): passed 12–0. - Motion to approve the HVAC control and a wheelchair van (two items bundled): passed (record in transcript: 10–0). - Motion to approve revised total revenue $46,217,047 and matching expenditures: passed 10–0. - Motion to authorize the delegation Executive Committee to work with commissioners on the supplemental items and to return recommendations to the full delegation (not to exceed Sept. 1): passed 9–0.

Delegates who spoke for forensic review and caution Several delegates asked for a deeper review or forensic audit before spending significant new dollars; Representative Buco proposed hiring auditors for a special review (that specific motion was discussed); the body instead voted to request a formal auditor letter and then approved specific immediate items after the auditor’s clarifications.

Ending The delegation closed the public hearing and recessed the supplemental budget process with a limited set of approvals and a direction for the Executive Committee to continue coordination with commissioners. Delegates asked for a signed auditor letter and additional documentation showing when and how ARPA funds were moved into the county’s general fund; the auditor agreed to provide that material.