Audit of County’s Books Shows Shortcomings at Treasurer’s Office

Date:

By Dave Baumeister, County Correspondent

SIOUX FALLS – It seems the axiom “with great power comes great responsibility” may apply to how Minnehaha County government operates.

Using its “power” to raise revenue through property taxes, the county commission passed a $92 million budget for FY2020 at their regular meeting on Tuesday, Sept. 24.

However, shortly before that, Jeff Schaefer from the South Dakota Department of Legislative Audit made his report on the FY2018 audit of the county.

For the second year in a row, that office found “significant deficiencies” in the county’s “responsibilities” for accurately verifying and reporting treasurer’s accounts – putting Minnehaha County out of compliance with South Dakota Codified law 7-10-3, which requires monthly reporting of cash and investment accounts.

In totality, the law reads: “The county auditor shall at the close of each calendar month list all cash and cash items held by the county treasurer and verify the balances in the depositories. The county auditor shall report to the board of county commissioners at each regular meeting the bank balances, the total amount of actual cash, the total amount of checks and drafts which have been in the treasurer's possession not exceeding three days. The county auditor shall also submit an itemized report of all cash items, checks, and drafts which have been in the treasurer's possession over three days. This report shall be made a part of the county commissioners' proceedings.”

As was discussed at a commission meeting two months ago, those reports from the Treasurer’s office had not been provided to the auditor since July 2018.

As Commission Chairperson Jean Bender said, while many look at the commission as “running the business of the county, there are a number of other independently elected officials at the county level.”

Apart from the county commission, the elected officials are the state’s attorney, sheriff, auditor, register of deeds and treasurer.

The problems found by Schaefer’s audit hinge around the office of Minnehaha County Treasurer Pam Nelson, and its neglect to supply the required monthly reports of the county’s accounts.

Although Nelson addressed this problem at a previous meeting, she was not present at the Sept. 24 meeting.

All five commissioners expressed their concern over this matter, and Bender said that Nelson would be “invited” to attend the next commission meeting.

But again, the county demonstrated its “power” by approving next year’s budget, which allows for the following increases:

  • 3% raise for employees,
  • 15% increase in health insurance,
  • 18 additional employees, all in public safety areas.

In developing this budget, the county passed a $6.5 million opt-out last spring, but they only needed to use $1.75 million to balance the 2020 budget.

According to documents presented, this opt-out will increase the county’s share of taxes by $11 on a $100,000 property.

The Minnehaha County Commission has its regular meetings each Tuesday at 9 a.m. on the second floor of the county administration building at 6th and Minnesota in Sioux Falls.

These meetings are open to the all, and public comment is always encouraged.

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