Auditor tells school board county finances are healthy as office moves to GAAP and tightens capital-asset records

The county auditor’s office told the school board that cash and investment balances have trended upward over the past two years and that the office is moving to GAAP reporting to strengthen the county’s position for future bond markets.

Terry Hutchins, the county auditor (speaking as the auditor), explained that Indiana law requires annual financial reports to be submitted via the State Board of Accounts’ Gateway system and said the office is preparing GAAP (Generally Accepted Accounting Principles) statements due June 1. “It helps, put the county in a better position to bond, more favorably,” Hutchins said.

Morgan Gonzatz, the auditor’s chief deputy, presented three-year cash-and-investment figures: 2023 beginning $164,108,325.68 and ending $108,000,385.55; 2024 beginning $145,385,559.19 and ending $160,313,802.44; and 2025 beginning $165,326,782.08 and ending $169,575,389.00. “As you can see, I think there’s been a trend up, to the to a positive, in my opinion,” Hutchins said.

Board members asked several follow-ups about unrestricted general-fund balances, peer-county comparisons and an apparent drop in 2023. A presenter noted the board’s general fund is about $32.8 million and compared that to several peer counties. Hutchins said the move to GAAP and a deeper review of capital assets —roads, bridges, buildings and vehicles—are underway and could explain some accounting shifts.

The board also pressed staff for more accounting detail. A member flagged a $5,000,000 line listed as “other services and charges” in the general-fund disbursements and asked staff to provide a breakdown. Staff agreed to obtain further information and said they will circulate additional schedules, including a one- or six-month expenditure coverage metric requested by the board.

Officials reviewed tax-sale surplus handling and abatements: surplus amounts from tax sales may revert to prior owners if redeemed; if unclaimed for the statutory period cited in discussion (roughly three years), the county may retain the funds. Hutchins said staff are reducing parcels moving to tax sale and coordinating with city and county partners.

Next steps: the auditor’s office will finalize GAAP-converted AFR documents by the June 1 target, return with a reconciled capital-asset schedule, and provide the requested disbursement detail and explanatory notes on the 2023 variance.