Post-Tribune

New auditor contracts out work

Porter County official got approval to send out tasks previously done in-house

- By Shelley Jones Post-Tribune

New Porter County Auditor Karen Martin recently received unanimous approval from the Porter County Board of Commission­ers to enter into a contract with Cender Dalton Municipal Advisors of Merrillvil­le.

While surroundin­g counties use the same firm, and Martin expects the bulk of the work to be focused on preparing reports on an as-needed basis, it is work the previous administra­tion performed fully in-house for the past eight years.

“We’re not using them for the day-to-day, but for the report preparatio­n,” Martin said of one category of work, annual report compliance for such categories as the American Rescue Plan Act (ARPA), Annual Financial

Report (AFR), and required Generally Accepted Accounting Principles (GAAP) financial reports, among others. “I suppose

I could do them myself,” Martin said, pointing out that the previous administra­tion of former Auditor

Vicki Urbanik and Deputy Auditor Toni Downing had eight years in office to get their bearings.

Martin said she is also undergoing a staff restructur­ing. She said Budget & Finance Director Tiffany Johnson, for example, did not have experience completing some reports under the former administra­tion. “Toni and Vicki had their own duties, but they were not allocated to others outside of those areas,” Martin said.

She said her office will primarily be handling grants in house. Other financial analysis and planning duties listed in the contract include: assisting the auditor with tax increment financing (TIF) neutraliza­tion; maintainin­g 2023 — 2029 major fund projection­s, including circuit breakers, if requested; assisting the auditor with projection­s, transfers, additional appropriat­ions, and analysis, abatement reviews, other post-employment benefits (OPEB) analysis, ARP and ERA oversight, and monthly meetings as requested; attending meetings with county officials and staff as needed; and providing other financial consulting services as requested.

Annual budget and salary ordi

nance duties listed in the contract include: assisting the auditor in preparing the 2024 budget and revenue forecast, as requested; attending meetings with county officials and staff, as requested; and working with the auditor on preparatio­n of the advertised budget and Gateway compliance.

“I voted for the contract,” said Commission­er Laura Blaney, D-South, “I think Vicki was kind of a unicorn as far as auditors go. She was very talented.”

“I know they were there a lot,” Blaney added of Urbanik and Downing. “Their cars were often the last in the parking lot.”

The Indiana State Board of Accounts hired Urbanik to work in the GAAP arena since her second consecutiv­e term as county auditor ended in December.

Since her departure, Blaney says she wants to make sure the new auditor has whatever support she needs.

“My main priority is making sure our books are straight as far as that contract,” she said.

The contract does not contain a not-to-exceed clause.

Since her administra­tion has only been in office a short time, Martin is not sure what cost ceiling will be reached. She also doesn’t expect the contracted work to be very great in volume.

On its page covering potential conflicts of interest the contract addresses the potential for conflict regarding hourly fees and reads: “This form of compensati­on presents a potential conflict of interest if the client and the adviser do not agree on a reasonable maximum amount at the outset of the engagement, because the adviser does not have a financial incentive to recommend alternativ­es that would result in fewer hours worked.”

Hourly billing will range from $75 per hour for work performed by an administra­tive assistant to $275 per hour for work performed by a partner.

Martin told the board the majority of work performed would fall under a rate of $145 per hour.

“I like to see not-to-exceed clauses, but I’m not really sure what the end point should be,” said Blaney.

Board President Jim Biggs, R-North, isn’t concerned by the lack of such a clause.

“I can guarantee that I have a figure in my mind,” he said. “I would be very concerned if we get into the tens of thousands of dollars here. So that will be watched.”

It is not uncommon for county government­s to use municipal advisors. “Lake County uses the services of various financial advisors,” said Lake County Attorney Matt Fech. “Normally it’s for particular projects.”

Fech said Lake County also uses Cender Dalton, as well as Baker Tilly for ARPA projects and Crowe-Chizek for the county’s GAAP conversion.

Lake County also has a salaried chief financial officer who works with their county council.

“She’s barely got into office and she should be allowed to get everything moving in the direction she believes it needs to be moving in,” Biggs said. “I trust her. I have no reason not to.”

“I know some people are having a difficult time that she won the election,” he added, “but she did win the election and she should be afforded the same opportunit­y as every other auditor who has come before her.”

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