Fentress County addressing a longstanding audit finding following the county commission’s approval of liability write-offs tied to unresolved payroll accounts.
Fentress County Director of Schools Kristi Hall said the write-offs stem from audit findings involving payroll liabilities that could not be matched to individuals, an issue that has appeared in audits for several years.
“Basically, we had unidentifiable liabilities that had been sitting in a fund,” Hall said. “So maybe somebody moved, and they paid their insurance up front, we lost track of that person, we never could return that money, that type of stuff.”
Hall said the district worked extensively to investigate the accounts and determine the proper course of action. She said state officials ultimately approved moving forward with clearing the balances.
“Justin Phillips and Kacee Harris have spent an enormous amount of hours working on tracking these liabilities down, and again, as I said, for three years, it’s been one of the audit findings,” Hall said. “The Comptrollers have finally given their blessing that, yes, this is the green light you can do a resolution and write these off.”
Hall said the approved write-offs will allow the funds to be returned to the school system’s fund balance. The adjustments include both increases and decreases across different school funds.
“For the general purpose school fund, it includes Cincinnati Life, American Fidelity annuity, American Fidelity, and medical insurance for $83,722.71,” Hall said. “So that is positive; however, in school nutrition, it will decrease by $5,580.66 for medical insurance and American Fidelity.”
Hall noted additional liabilities are still being researched and could be addressed in future actions. The County Commission unanimously approved the write-offs.