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Commissioners discuss accounting reclassifications flagged to state auditor
Summary
A discussion during the Medina County meeting raised concerns that some 2025 and 2026 accounting reclassifications were made via journal entries in ways that may have skirted the formal budgetary appropriation process; the finance director said the state auditor has been notified and staff are working on improved controls.
During the discussion session, a participant identified as Steve asked for an update on a March 25 memo about journal entries and the reclassification of expenditures.
Finance Director Brett Thomas said the 2025 reclassifications included salary and other items that had been moved via journal entries rather than through the formal budgetary appropriation process, and he described that practice as having the effect of "skirt[ing] budgetary restrictions." Thomas said he and the director of accounting have been working with the state auditor, that the auditor's office is aware of the memo and that staff are collaborating to form improved procedures and controls for journal entries going forward.
Thomas emphasized that journal entries are intended for accounting corrections (for example, to fix a mis-keyed amount) and should not replace the budgetary process when appropriations need to be increased. He said the county's accounting system currently allows such entries to be posted without prior approval and that staff are developing a resolution path to require notice and approval for reclassifications that affect appropriations.
No formal determination or corrective action was announced at the meeting; the issue remains under review by the state auditor and county staff said they will continue to develop controls and report back.
