Jansen Chairperson Explains Audit Discrepancy

By Gordon HopkinsThe COVID-19 pandemic has complicated virtually every aspect of government in one way or another, as evidenced by a letter from the Nebraska Auditor of Public Accounts, sent to Kesha Eldridge, Chairperson of the Jansen Village Board. That letter, written by Assistant Deputy Auditor Mark Avery, CPA, and dated March 22, 2022, read in part, “For the fiscal year ended September 30, 2021, actual expenditures exceeded the adopted budget by $125,082.” However, this does not mean the Village of Jansen spent over $125,000 more than anticipated. Instead, these funds were carried over from prior budgets for projects delayed by the pandemic.Eldridge sent a letter to FJN, explaining, “The Village of Jansen’s FY (Fiscal Year) 21 expenditures were in excess of budget for that year because there were expenses relating to the village’s water project for items that were delayed due to COVID during the summer and fall of the previous year (2020).”“The FY 20 budget included $2,100,000 of possible expenditures for the water project for a total budget of $2,341,223. In March of 2020 the village received $750,000 of bond proceeds for the water project. It was anticipated that the entire bond proceeds would have been expended during FY 20. Due to COVID shutdowns in 2020, parts of the water project were delayed and only $302,138 of the bond proceeds were actually expended during FY 20. The total expenditures for the Village in FY 20 was only $467,266 far below the budgeted amount,” wrote Eldridge. “During the FY 21 budget process in August 2020 it was still anticipated that the remaining bond proceeds would be expended by September 30, 2020 and there would be no additional water project expenditures in FY 21. Because of COVID delays and the sequential timing of projects $280,570 of bond proceeds ended up being dispersed in FY 21. This is the reason for the excess in expenditures for FY 21.” Eldridge told FJN this data has been verified with the village accountant.However, the auditor did identify one problem: no amended budget was filed with the state auditor. According to the auditor’s office, “When expenditures are made in excess of the amounts budgeted with no appropriate budget amendment by the board to address those excesses, the village is noncompliant with state statute, further increasing the risk for loss and/or misuse of funds.” The state auditor therefore wrote, “We recommend the board implement procedures for monitoring closely its budget status on an ongoing basis to avoid incurring expenditures in excess of the amount budgeted, amending the budget as necessary to accommodate any unforeseen expenses.”Eldridge advised FJN, “The Village Board does not anticipate any expenditures in excess of adopted budgets in the future, because the remaining amount of bond proceeds for the water project are included in FY 22 budget and will cover the last remaining items relating to the water project for which the bonds were issued. The Village Board will continue to closely monitor its actual expenses compared to adopted budget amounts to ensure compliance with State Law.”

Work Progresses On Veterans Memorial

Wastewater Treatment Plant Costs Now Over $5 Million

Related Articles

Legislative Session Ends Without Passing Property Tax Package

Wymore Receives Grant To Demo Gambles Building

Should Flood Buyout Properties Be Taxed?

Proposed Fairbury Parking Ordinance On Hold