The McLean County Board could decide to claw back more than $400,000 in budget overruns from County Clerk Kathy Michael's office.
Last week, McLean County Board Executive Committee members took County Clerk Michael to task for going over her budget last fiscal year.
Board chair Elizabeth Johnston said in a WGLT interview that depending on what invoices and other documentation Michael submits in the next month, the county general fund may need to be reimbursed by Michael's office.
“The question is, from an accounting perspective, on the books, is this something that is simply smoothed over by pulling out of the general fund, or do we leave it set up so that as she is increasing some taxpayer savings, that we can allow that to refill the general fund,” said Johnston.
Michael promised the committee there would be savings from the unapproved purchase of new software for elections.
Michael has said the overages in software, overtime and non-contractual services were caused by unique circumstances. Johnston said the questions for the clerk needed to happen publicly. It is not the first time Michael has exceeded her spending authority.
“Most of the departments that we see come on a regular basis — when things emerge — communicate to the board. This is what is needed. This is why it's needed. This is how it's going to impact. This is the benefit it will have. And this is the third year in a row that we've not seen that from the clerk's office,” said Johnston.
Johnston said the county board tried to get a handle on it last year and Michael ignored new reporting rules.
"We changed the policy, the budgetary policy, to say that if there are no funds within that it cannot be expended until it's been approved by the county board. That was also unsuccessful," said Johnston.
Johnston said Michael’s appearance before the County Board Executive Committee was encouraging.
“What I saw was a demonstration of a willingness to communicate and a willingness to partner. The tabling for the 30 days was to allow her time and her staff to pull together the memos that every other department has written throughout the year so that we can review what these expenditures were. Were they on the right budget line item and is it something that really deserves to be pulled from the general fund?” said Johnston.
Johnston said new county-wide financial reporting software will also help address the situation with Michael and will help other department heads. The county began using new Enterprise Resource Planning software last month. Johnston said it gives the county the ability to put “guardrails” on department spending.
"When department heads, who are our first line of defense for budgetary responsibility, put the items into their line, like into that line item, they put in the expenditure. If there is not sufficient funds in that, it will stop it immediately. It will require them to come to the board. It will require approval," said Johnston.
She said the program replaces an "antiquated system based on manual labor."
"The system will be more efficient. It will be an immediate tracking of expenditures. It will facilitate the movement from the department head to the auditor to the treasurer. We will be able to see immediately when things have been submitted to each department to try to move this forward," said Johnston.
