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Rock County authorizes $10,000 per county holdback on rail reimbursements to cover anticipated federal audit
Summary
The board voted to let the rail authority retain $10,000 per member county to cover an expected federal audit tied to FEMA reimbursements; county staff said audit bids ranged up to about $20,000 and the board approved the measure unanimously.
Rock County commissioners on June 2 authorized member counties to allow a $10,000-per-county holdback from rail authority reimbursements so the rail authority can pay for an anticipated federal‑level audit.
Commissioner: "We're allowed to hold back 10,000 each," a commissioner said during discussion of reimbursements tied to three projects for which the county had previously loaned money. The board moved and approved the holdback to ensure the authority could cover audit costs generated by FEMA reimbursement work.
Why it matters: County staff and commissioners described a chain of reimbursements and loans tied to a rail authority project that, together, pushed the authority past a federal reporting threshold the board cited as roughly $750,000. That threshold, commissioners said, triggers a federal single‑audit requirement. County staff said one firm quoted around $20,000 to perform the audit and staff were seeking competitive bids.
Details on amounts and timeline: Commissioners said the county and a neighboring county each loaned roughly $450,000 toward work on three projects (combined work discussed as about $900,000). To cover the anticipated audit expense the board authorized accepting a $10,000 reduction per county in the reimbursement, described in discussion as receiving $4.40 instead of $4.50 in the transcript’s phrasing; the motion carried by voice vote with no opposing votes recorded.
County staff said they had reached out to audit firms to seek lower bids. "They quoted us around $20,000 so I reached out to another firm called Abdo," Ashley (county staff) said, describing efforts to find the least‑cost compliance option.
What happens next: The authorization gives the rail authority funds to pay audit costs when invoices arrive; staff said final audit cost and the chosen auditor would be reported back to the board once procurement is complete.
