Franklin County adopts financial policies, sets multi-million-dollar reserve target

County Administrator Danzel opened the public hearing on Resolution 2025-330 and framed the proposed financial policies as a response to recent audit work and a step toward improved internal controls and sustainable budgeting. "For the first time in a very long time, we had a clean audit," Danzel said, describing the policies as a way to standardize procedures and reduce the risk of audit findings.

Danzel said the policies strengthen internal controls in areas including cash receipting, accounts receivable, payroll processing and grant management. He emphasized the policy's requirement that current expenditures be paid with current revenues and the directive that capital projects must be tied to an identified revenue source and a six‑year capital improvement plan.

On reserve targets and funding levels, Danzel and commissioners discussed specific goals. When asked about an initial reserve number, Danzel said the amount set in the 2026 budget was "to transfer 1.1 0.4," and later described the combined target as "right around $11,000,000." Commissioners noted that the policy follows guidance from the Government Finance Officers Association and reflects higher-than-minimum reserve levels.

With no public comments offered during the hearing, a motion to adopt Resolution 2025-330 passed on voice vote. The adopted policy requires a reserve fund, imposes stricter grant acceptance rules to evaluate local match and long-term costs, and calls for comprehensive and timely financial reporting to the board and oversight entities.

Staff and the auditor's office were thanked during the discussion for work on the draft policy. The board directed no additional changes during the meeting; staff will proceed to implement the new financial policy and begin the process of funding the reserve as outlined in the adopted document.