Mercer County debates fiscal-year accounting for late bills, approves most vouchers and holds several large invoices

Mercer County commissioners spent significant time discussing how bills that arrive near year-end should be charged to fiscal 2025 or 2026 and approved most vouchers while holding a few large invoices for later allocation.

Unidentified Speaker 2 said auditors commonly move late January/February bills back to the prior year during audit and stated, "They come out of the '25 budget, not the '26," describing the county auditor’s typical adjustment practice. Commissioners debated whether the county should operate on a modified-accrual or cash basis and whether to require departments to submit bills earlier so the board can assign them to the correct year.

Several commissioners raised concerns that a recent crushing/gravel bill and royalty fees were paid using transfers between funds without a clear, documented board decision. Unidentified Speaker 4 pressed for better communication and said these transfers should be a collective decision; Unidentified Speaker 1 asked that Treasurer/Auditor staff (Don, Rachel, Tyler were named in discussion) provide the line-item transfer sheets and confirm where funds were drawn.

Commissioners reviewed a near-$43,000 Tyler invoice and discussed splitting the charge between the 2025 and 2026 budgets (speakers referenced splitting roughly $40,000 into 2026 and $3,000 into 2025). They agreed to postpone payment allocation for three large items—the county conversion item, Lewis And Clark Regional Development invoice, and the Tyler charges—until the January 7 meeting so staff can provide documentation and properly apportion expenses.

Unidentified Speaker 2 moved, and Unidentified Speaker 4 seconded, a motion to approve all other bills and vouchers and to hold the specified large invoices for the next meeting. Roll-call votes were recorded and the motion passed. The commission directed staff to bring transfer sheets, line-item breakdowns for the road department, and documentation from Tyler or other vendors so the board can properly assign expenses to fiscal years before finalizing budgets.

Next procedural steps: staff will consult Tyler and the county auditor about whether journal entries or system postings can be used to record bills in the intended fiscal year; department heads will be asked to present year-end bills earlier in the cycle; and the held invoices will be revisited at the next meeting.