Blue Ridge, Ga. – A misunderstanding of county accounting practices and a misuse of terminology had the Board of Commissioners (BOC) questioning whether the Board of Assessors were keeping two sets of books.
Chief Appraiser Dawn Cochran spoke at the June 12 Board of Commissioners meeting about a line item in the Tax Assessors budget that she felt was an error.
The line item in question concerns the purchase of new aerial maps for Fannin County. According to an agreement made last year, the Tax Assessors Department would pay for the mapping upfront, but other departments who would benefit from use of the maps would reimburse the county for their portion of the overall price.
“We started at $24,000,” Cochran said explaining the line item, “We paid $8,000 out to QPublic. We paid $22,000 to EagleView which is for the maps. We paid $1,000 for LiDAR (Light Detection and Radar) and that put us a balance of negative $7,000.”
Cochran stated that the revenue to date for her department was $7,508.13 and that invoices had been sent out to other departments for their share in the mapping costs for a total of $12,513.35.
“The current balance that should be in the line item for maps and aerials is $13,021.68,” Cochran concluded.
Cochran approached the BOC because the department still has expenditures for the year that would need to come from that line item and worried that already showing a negative balance would reflect badly on continued spending.
Fannin County Chairman Stan Helton explained that crediting back revenue to a department is not how the county’s accounting practices work. Helton stated that the way the county keeps records of its expenditures and revenues is set by the county’s auditors, Rushton and Associates.
According to Helton, revenues from any department are put back into the county’s general fund. He cited the Tax Commissioners office as an example of why this is the practice. Helton stated that if revenues were credited back to a department, such as the Tax Commissioners, it would in a sense give the department unlimited spending abilities.
“They tell us that you don’t offset expenses with revenue,” Helton said explaining the auditors recommendations. “You just don’t do that.”
Helton went further to ask if Cochran had ever invited Fannin County’s Chief Financial Officer Robin Gazaway to a Board of Assessor’s meeting to explain this practice. Cochran replied that she had not, but that she had been in contact with Gazaway via email and that all board members were copied to the exchange.
Cochran did not back down from her claim saying that it is important to keep accurate numbers from the top down, adding “Our number’s don’t match up with Ms. Gazaway’s numbers.”
Helton questioned Cochran’s accounting background and why she felt that her knowledge was correct over the county’s hired CFO.
Cochran stated that her board was upset over this “false negative” and stated, “It’s really hard to try to keep two sets of books.”
This statement immediately caught the attention of the commissioners with Helton asking Cochran to clarify and if she had made both sets of books available to the county’s CFO Gazaway.
Cochran replied that she does keep two sets of books and had made them available. Gazaway, however, stated that she had never seen the second set of books.
Post 1 Commissioner Earl Johnson questioned, “Your board is upset. Which set of books are they upset over?”
Later, Board of Assessors board member Troy Junnier would clarify Cochran’s statements, “Dawn brings up a spreadsheet. It’s not a separate set of books or anything like that.”
Junnier also stood behind Cochran’s questioning, “It looks bad on our department because we’re showing a negative line item when we’re really not.”
Helton explained that the negative line item would be amended at the end of the year budget review and that all of this could have been explained by Gazaway at one of the Board of Assessors meetings had she been invited to a meeting to discuss.
Post 2 Commissioner Larry Joe Sosebee pointed out that the BOC is more concerned with a department’s overall budget, “You’re concerned over a line item and your overall budget is right where it should be.”
“I understand why,” Johnson expanded on government accounting,”and if we all three (commissioners) understand why, you don’t have a problem because at the end of the year, as was said earlier, we’re going to vote to amend the budget, if you are over budget.”
Johnson added that there needs to more face to face interaction with the BOC and the departments when issues arise. Johnson’s reasoning is that interacting face to face and in public meetings would help to eliminate miscommunication and misinformation being spread through media outlets.
“Stop the emailing. If there is a problem come to a meeting. If there is a problem, handle it at your meetings,” Johnson said to Cochran expressing his frustration with the current lines of communication. “I for one am sick of friction between the Board of Assessors and the Board of Commissioners. I’m tired of reading stuff in the papers before you even come here.”
“Before your accuse the county and the Board of Commissioners of essentially not knowing what they’re doing, you might ought to come here first,” Johnson added.
Cochran replied to Johnson saying, “I can’t help how the media takes things and what they do with it.”
“It seems like there is an effort to discredit this board and our CFO,” Helton expressed his feelings on the matter. “It needs to stop. We are doing things accurately.”
Junnier replied to the BOC, “We didn’t come to try to make it seem like we were trying to discredit anybody.”
“I was concerned that it (negative line item) would come back not only just the department head or the department itself, but also on the assessors board,” Junnier added.
In the end Junnier thanked the BOC for fully explaining the accounting practices of the county, and for addressing the negative line item in the Board of Assessor’s budget.
After Junnier and Cochran took their seats, Chairman Helton spoke with the commissioners about a possible way to lower the budget of the Tax Assessors department.
“You know I’ve expressed a concern for sometime about our budget in our Tax Assessors department,” Helton said proposing an alternative way to structure the department, “and I’ve spent quite a bit of time looking at the other counties. There’s some counties out there and their budget is just a fraction of ours.”
Helton presented the board with a 3 year contract proposed by independent appraisal company Georgia Mass Appraisal Solutions & Services (GMASS). In this contract, GMASS offers to appraise a third of the counties parcels each year for three years.
The cost of this outsourcing would be approximately $223,000 for the first two years and $338,000 for the final year. The total of this proposal would be $784,000 over three years.
Johnson pointed out that the total in the proposal for three years of service is less than the current budget of the Tax Assessors department for a single year.
“I’m for anything that saves money,” Johnson said addressing the current money being spent by the county in this area. ” I know I asked two or three years ago if our money would ever come back down and I was told no. After we came back into compliance, that it would never go back down.”
Helton clarified that he was not advocating to completely replace the tax assessors department: “You always need to have some local involvement and people there.”
Chief Appraiser Dawn Cochran did confirm that her department already outsources rural parcels and had planned on asking for help with approximately 13,000 parcels, a little under half the county’s total parcels, in 2019.
The BOC agreed to look over the possibility of outsourcing appraisals and would address their findings and concerns at a later date.
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