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La Paz County reports $1.9M spent to clear negative balances, first-quarter FY26 budget on track
Summary
County finance staff outlined a multi‑phase cleanup that cleared 88 accounts at a cost of about $1.9 million, reported about $1.5 million available for the project in FY25, and presented a first-quarter FY26 budget snapshot showing revenues and expenditures largely on track.
County finance staff told supervisors they have substantially reduced an audit-related backlog of negative balances and reconciled dozens of abandoned funds, using LATCF funding and budget savings across fiscal years.
Karen (county finance presenter) reviewed phases 1–3 of a negative-balance cleanup project, saying staff cleared 88 accounts and spent about $1.9 million to reconcile accounts and resolve longstanding due-to/due-from liabilities. "Out of the 3 phases for FY24 and '25, we were able to clear 88 funds, and we spent about $1,900,000 to do that," Karen said, and she credited Walker and Armstrong and Susan Spencer for assisting with the reconciliations.
Karen and other staff said about 25 additional funds remain with negative balances estimated at roughly $900,000 pending reconciliation to determine the true liability. The cleanup used an initial LATCF allocation of $472,400, about $34,000 in interest and an additional $500,000 of FY25 budget savings, plus $374,000 from reconciled special-revenue accounts, for a sum of roughly $1.1 million earlier referenced; staff later said the total project spending approached $1.9 million.
The board also received a first-quarter FY26 budget update. Staff said about 83% of revenues remain to be collected—an expected seasonal pattern because property-tax payments are typically due Oct. 1—and that general fund expenditures are on track around 25 percent. Department-level variances (salaries under budget because of vacancies; operating expenses slightly over) were discussed, and managers were asked to review highlighted areas.
Why it matters: The cleanup addresses long-standing audit findings and aims to remove repeated audit exceptions from future reports. Reconciliations and clearer fund accounting make departmental budgeting and grant management more transparent and auditable.
What happens next: Staff recommended continuing reconciliation for the remaining funds, potentially allocating FY26 savings or addressing remaining items in the FY27 budget process. The board expressed appreciation for staff work and asked for regular quarterly budget updates.
