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Newton County officials warn audit delays could jeopardize federal grant reimbursements
Summary
Commissioners heard that outstanding 2022 (and 2023) audits are delaying federal draws and could leave the county financially responsible for projects already advanced; they asked staff for a summary of outstanding grant obligations and invoices.
Newton County commissioners on Nov. 12 were warned that lingering audits for 2022 (and related 2023 work) are holding up federal grant reimbursements and could expose the county to unbudgeted obligations.
County staff and outside auditors told the court the Department of Agriculture and other federal funders will withhold draws until required audits are closed. Staff said some projects are complete or advanced — including an East Newton project and work on an event center — but the county cannot submit reimbursement requests while the audits remain open. The county’s estimated financial obligation for one affected contract was described in discussion as roughly $375,000, but staff noted exact exposure depends on each grant’s draw schedule and the timing of audit completion.
Commissioners asked for a concise summary of outstanding grant-related obligations, engineering costs, invoices paid to date and amounts that could hit the county budget if federal reimbursements are denied. The court also discussed the county’s recent procurement of outside auditors and the sequence of documents already provided; staff said most of the core information for 2022 had been delivered and that 2023 work may arrive soon.
County Auditor Milton and staff members Morgan and Sherry described a mix of ‘core’ and follow-up documents sent to the auditor. Commissioners expressed concern that delays could force the county to pay contractors or engineers up front without reimbursement. One commissioner said the court needed to revisit approval lines for contracts if audits remain outstanding before year-end.
The court did not take a formal vote on policy changes but directed staff to prepare the requested summary of outstanding grant obligations and invoices and to pursue closure of the 2022 audit as soon as possible. The summary was requested to include: projects affected, amounts spent to date by project, expected federal draws, and any pending invoices the county may have to pay before reimbursement.
