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County must return unspent LAP septic grant funds after accounting error; reserves cover shortfall but budget authority affected
Summary
Justin Craig said a $50,000 LAP septic grant awarded in 2024 was recorded into the general fund rather than a grant fund; about $25,000 was spent on two approved replacements and KDHE is asking for the unspent amount to be returned, which will show as a $50,000 budget‑authority shortfall even though cash reserves remain.
Justin Craig told the commission the county’s 2024 $50,000 Local Assistance Program (LAP) septic grant was deposited into the general fund instead of a separate grant fund. The program approved two applications that used just under $25,000 of the grant, and KDHE is now requesting the unspent funds be returned.
Craig said the money is physically in the general fund (unencumbered cash), but because the grant dollars were not entered into a separate grant fund or recorded correctly, the county’s budget authority will show a shortfall of about $50,000 for the current year unless the accounting is corrected. Staff advised that the correct future practice is to establish a discrete grant or LEPP fund so leftover money can be returned without reducing operating budget authority.
Commissioners and staff agreed the cash exists but the accounting treatment needs correction; staff noted they can set up improved tracking in the appraiser and clerk systems to project RHID, TIF, and similar items in future budgets.
