A Shasta County auditor memo says Facilities Management finished the 2024-25 fiscal year with a $555,951 overage in the 05 - Other Charges category, though balances in the 03 - Services and Supplies category are expected to cover that portion of the overage.
The same memo says the department used $797,125 in retained earnings above the approved budget after removing the effect of a prior-period GASB 101 adjustment related to compensated absences. The auditor wrote that the overage resulted from revenues that did not materialize without a corresponding reduction in spending.
In the memo, Auditor-Controller Nolda Short said the object-level overage violates county Administration Policy 2-101, which requires departments to keep spending within each object level in the adopted budget. The memo also cites Government Code section 29730 as requiring a 4/5 vote of the Board of Supervisors for additional use of retained earnings.
Short asked Public Works Director Troy Bartolomei to respond in writing by May 10 with a detailed explanation of each issue and copied County Executive Officer David Rickert, Deputy County Executive Officer Erin Bertain and Brook Lowther. The memo says the County Administrative Office will contact the department about any necessary adjustments under Resolution 2024-055.
The memo says departments that face an unauthorized use of retained earnings must either reduce the current-year budget or take the item to the board for approval.
