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COG accepts accounting review, approves 2025 financials and creates separate grant fund
Summary
Consultants Julian & Grube presented a 21‑item accounting and internal‑control review; the South Summit Council of Governments accepted the draft, approved the 2025 cash‑basis financial report and adopted a new government‑assistance (grant) fund to keep restricted dollars separate.
The South Summit Council of Governments on March 19 accepted a draft accounting and process review from consultants Julian & Grube, approved its 2025 cash‑basis financial report and resolved to create a separate government‑assistance fund for restricted grant dollars.
The council voted to adopt Resolution 2026‑01, the annual financial statement required by the state auditor (the Hinkle report), after Treasurer Brian Huffman summarized the year's activity. Huffman reported operating receipts of $2,074,530 and operating disbursements of $2,146,210, producing a cash deficit of about $66,009 for 2025. "So something to kinda keep an eye on when we're...doing this next year is where we end up at," Huffman said while outlining trends and the need to maintain a modest balance for emergencies and capital needs.
The council then heard a remote presentation from consultants Rebecca Heiser and Amanda Copeland of Julian & Grube, who walked through a 21‑item draft report of recommendations to strengthen internal controls and reporting. The report advised segregation of duties (separating custody, reconciliation and authorization roles), stronger board oversight with monthly or quarterly fiscal reports, surety bonds or insurance for staff who handle funds, digitized document retention to preserve audit trails, tightened reimbursement and credit‑card procedures, steps to avoid inappropriate sales tax charges and a clearer purchasing/PO workflow.
On payroll compliance, the consultants said the COG had not consistently filed quarterly IRS Form 941 reports in earlier years, a lapse that produced compounded late‑filing penalties. "If you don't report, they will charge you," Heiser said, urging prompt payment of overdue amounts, layered review of payroll reporting and a board notification process for any fines.
The consultants also recommended creating a separate fund and stronger grant accounting to avoid commingling restricted grant receipts with general funds. The council followed that advice by passing Resolution 2026‑02 to establish the government‑assistance fund; the measure passed on roll call.
Council members and finance directors from member cities said many recommendations were already under way. Susan Cook, finance director for the City of New Franklin, urged better payroll register practices and monthly bank reconciliations; Green's finance director, Shelley, said finance directors will meet quarterly with the new treasurer, Brian Huffman, to track implementation.
The council moved to formally accept the consultants' draft so Julian & Grube could complete final recommendations. The motion passed by roll call. Chair closed the discussion by instructing staff to return with draft policies and possible bylaw changes to implement the recommendations.
The council will review implementation progress at future meetings; the draft report and minutes are part of the public record.
