Supervisors asked for documentary detail and more transparency on the county’s cost‑plan (A‑87) and the composition of the unrestricted fund balance during a lengthy fiscal session at the Mendocino County workshop.

What happened: Executive Office staff explained the function of the county cost plan as guidance from the State Controller’s Office for allocating indirect costs to grants and other budget units. Assistant CEO Sarah Pierce said the office is collecting grant and budget data requested by the board, and CEO Darcy Antle confirmed the county engaged an independent consultant to assess how systems such as Munis are being used. Auditor‑Controller Shamise Kubison said special districts are currently reflected in the cost plan as a disallowed column but that legal review will be needed to determine which special districts may lawfully be billed and how to charge them.

During discussion, Supervisor Williams urged staff to “show your work” — circulate the spreadsheets and formulas used to calculate the cost‑plan allocations — so supervisors and special districts can see the underlying entries and ask informed questions. Supervisors also asked how the county had relied on roughly $700,000 in cost‑plan recoveries in last year’s budget and whether that figure is still reliable.

Reserve debate: Staff presented the GFOA‑recommended target for Mendocino County’s unrestricted fund balance (about $27.1M) and a preliminary close showing a balance of about $14M, roughly $13M below target. The board directed the executive office and the auditor‑controller to come back at midyear (Feb. 24) with a reconciliation that separates recurring funds from one‑time carryforward funds and a prioritized list of possible one‑time uses such as deferred maintenance, roads, and system modernization.

Why it matters: Supervisors said knowing which funds are one‑time versus ongoing is essential before approving uses for reserves or proposing new taxes. Several supervisors emphasized caution about using one‑time funds for recurring staffing and mandated services.

Next steps: Staff will deliver a midyear report separating recurring and one‑time balances and provide the supporting cost‑plan documentation auditors and supervisors requested; the board asked for the auditor‑controller to provide the cost bases used by internal service departments.