Auditor briefs committee on Missouri Valley Complex accounting; members consider subcommittee and flowchart

Burleigh County Auditor Mark Swankowski presented a condensed accounting summary of the Missouri Valley Complex (MVC) fund to the Development Committee and answered members' questions about fund balances, interest earnings and reserve accounting.

Swankowski told the committee that the materials were reduced from roughly 300 pages to a digestible 60-page packet and that the raw ledger view can appear confusing because line items reflect budgeted amounts, adjusted budgets and revenue recognition timing rather than a single cash balance. He explained that some lines shown as negative represent budget targets or projected revenue rather than an actual negative cash position.

On investments, Swankowski identified approximately $5,500,000 in investments tied to the fund but said the accounting was not fully updated through year-end when the materials were prepared. He said interest earnings were budgeted at about $209,800 for 2024 and the ledger showed the fund was roughly $21,000 below that projection at the time the report was prepared. Swankowski added that much of the fund's invested principal is in bonds that mature in future years and therefore do not generate current annual interest in the ledger.

Committee members asked why the restricted-for-culture-and-recreation line had declined from earlier years. Swankowski and other committee members said the county commission previously used fund balances to lower property taxes in some years and that the county commission directed a transfer of interest revenue to the highway department for emergency work in early 2024. Swankowski said those transfers were treated as revenue or interest adjustments rather than principal withdrawals.

Several members recommended clearer presentation of the fund. Swankowski proposed creating a flowchart or diagram to show where state funds, interest earnings, reserves and operating balances sit and how they move between buckets. He also suggested forming a three-member subcommittee to review ledger details and meet with staff to sharpen questions and produce a report back to the committee.

The committee requested a snapshot showing where all balances stood for 2024, a listing of bond holdings and maturity dates and a concise list of near-term action items for the March 19 meeting. The committee did not approve a named subcommittee at this meeting; members discussed the scope and expectations and deferred formal appointments.

Ending: The auditor will prepare a 2024 balances snapshot and a proposed flowchart and will provide a list of bond holdings and proposed action items for the committee to consider at its March 19 meeting. Committee members expressed support for a small subcommittee but deferred formal appointments until expectations are defined.