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Sherman County counsel recommends clarifying audit language in interlocal agreement for community development funds
Summary
County attorney told commissioners the interlocal agreement language is ambiguous about who must perform or pay for audits of the Sherman County Community Development Board; commissioners agreed to amend the agreement to specify audits are done at the request of the city or county and paid by the requester.
County counsel raised a concern that the interlocal agreement with the Sherman County Community Development entity contains ambiguous language stating the board "shall be subject to an annual audit" without specifying who must request or pay for such an audit. Counsel said ambiguity leaves open whether the board, the participating municipalities, or the county must initiate and fund audits.
Counsel suggested that the commission decide whether the county audit suffices for transient guest tax (TGT) funds, or whether the interlocal agreement should require audits only if requested by the city or county and at the requester's expense. Commissioners discussed cost (one commissioner estimated an audit could cost roughly $15,000), transparency, and the practical difficulty of requiring audits of small nonprofit boards that may not budget for them. The county counsel and commissioners agreed to draft amendment language and pursue a joint meeting with the city to finalize the change and then resubmit the amendment to the appropriate state office.
