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WILKES-BARRE — For the second year in a row, Luzerne County has reduced its general fund deficit.
Mike Johns, principal at CliftonLarsonAllen auditing, said the county had again, “beat the budget,” reducing its deficit from $9.4 million at the end of 2015 to $7.9 million at the end of 2016.
And although auditors generally delivered good news, they also provided several caveats to council.
Johns detailed concerns regarding the segregation of duties, saying it is sometimes the same county employee who approves and records a financial transaction.
“You always need a system of checks and balances,” he said.
Brian Swetz, the county’s budget/finance division head, said he foresees the problem being alleviated because of increased staffing.
“There are more people available to review transactions,” he said. “I have a deputy now.”
Johns also said financial reconciliations should be done monthly or quarterly.
“Some have simply been done annually,” he said.
On a positive note, Johns pointed to $800,000 in the general fund that had been earmarked to be spent by Luzerne County Children & Youth Services, but was not used.
“Its like getting out your winter coat from last year and finding money in the pocket,” said council’s Linda McClosky Houck.
County Manager David Pedri suggested the funds be used to bolster the county’s pension fund or placed in the reserve account.
Pedri credited both CliftonLarsonAllen and the county finance department with “getting the job done” on time.
“There were over 800 documents that were requested,” he said. “They worked incredibly hard and made the timeline.”
In other business:
• Council discussed upcoming capital projects and their effects on what many have called a “rapidly dwindling” capital fund.
The fund, containing previously borrowed money, now contains about $9.5 million.
Should all scheduled projects be completed by 2021, that amount would be reduced to $1.2 million.
When questioned about the expenditures by county councilman Rick Williams, Pedri said, “Are you asking that the rotunda project be suspended? I don’t think that’s the right thing to do.”
Pedri said present courthouse projects, which include some grant funding, not only increase the aesthetics of the structure, but provide necessary safety.
“So, public safety is really driving this project (of courthouse restoration)?” Williams said.
“Yes it is,” said Pedri.
• Pedri also discussed a recently signed contract with ADP for payroll services.
“Although it is already signed, it hasn’t been implemented,” he said. “I think that it’s prudent to review it.”
Pedri also said he would be reviewing New World System financial software purchased in 2012.
Resident Brian Shiner questioned if New World software had been underutilized by the county and could perhaps fill its need for payroll services.
“I don’t think that New World can provide the services that ADP can,” said Pedri. “But I think we need to understand what both can offer.”