During a recent workshop held on September 24, 2025, Custer County officials engaged in a detailed discussion regarding the implications of lease agreements as reflected in the county's audit report. The meeting highlighted the complexities of accounting for lease proceeds, particularly in relation to the capital improvement fund.

A key point raised was the terminology used in financial reporting, specifically the term "proceeds from leases." One official expressed concern that this term could mislead stakeholders into believing that the county has received actual cash. Instead, it was clarified that these proceeds represent a financial obligation for future payments on leases, rather than immediate funds available for use. For instance, the county has entered into a lease for a landfill compactor costing approximately $680,000, with a down payment of $80,000 and the remaining $600,000 to be financed over subsequent years.

The discussion emphasized the importance of accurately reflecting these financial transactions in the county's budget. Officials noted that the accounting convention requires recognizing the financed portion of the lease as part of capital outlay, which can inflate the reported capital expenditures. This practice necessitates careful documentation in board resolutions, including details about total equipment costs, down payments, and future financing obligations.

To enhance clarity and transparency, officials suggested that future board resolutions should incorporate a comprehensive acknowledgment of large transactions, including any necessary budget amendments. This approach aims to provide a clearer understanding of the financial commitments involved and ensure that all aspects of the transaction are accounted for in a cohesive manner.

Overall, the workshop underscored the need for precise financial reporting and the importance of clear communication regarding the county's fiscal responsibilities. As Custer County continues to navigate its financial landscape, these discussions will play a crucial role in shaping future budgeting practices and ensuring accountability to the community.