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The Humboldt County Board of Supervisors unanimously approved the transfer of $381,482 from the county’s General Fund to the Department of Health and Human Services (DHHS) during the board’s regular meeting Tuesday to cover financial losses associated with delayed postings by the Auditor-Controller’s Office. 

The item, which was pulled from the consent calendar by Second District Supervisor Michelle Bushnell, stated that the auditor-controller’s failure to post Internal Service Fund (ISF) and Cost Allocation Plan (CAP) charges to the general ledger in a timely manner prevented DHHS’ Public Health branch from meeting several claiming deadlines for reimbursement. The money will restore what Public Health has lost in state and federal reimbursements between Fiscal Years (FY) 2019-20 and 2020-21.

Green | Screenshot

“Had the ISF and CAP charges posted to the general ledger timely, we would have been able to include those costs into the claim for Public Health and been 100% reimbursed,” said Trevis Green, deputy director of Financial Services for DHHS. “…At this particular moment, Public Health itself is subsidizing the federal and state government for programs that we’re putting on on their behalf.”

Impacted services included several nursing and dental programs, substance abuse prevention initiatives and projects through the Mental Health Services Act. 

Had Public Health gone ahead and filed for reimbursement without proper backup documentation, “that would be fraud,” Connie Beck, director of DHHS, told the Outpost.

County Administrative Officer Elishia Hayes noted that the expense “should not be the burden of the General Fund” but acknowledged that Public Health would not be able to recuperate the funds otherwise. 

“This has been a perpetual problem for our organization for a number of years,” Hayes said. “…This is problematic for our organization and puts us at great risk of losing dollars which may become a burden of the general fund just to keep programs running and being effective for our community.”

First District Supervisor Rex Bohn asked Hayes whether the associated paperwork had been done correctly. “This is real money,” he said. “…We’re throwing things at the wall hoping we have enough money…but it’s not getting done.”

Bohn emphasized that “something seriously needs to happen” for the financial health of the community at large. “It’s, I don’t know, probably the most frustrating thing ever.”

Bushnell made a motion to approve staff’s recommendation which was seconded by Third District Supervisor Mike Wilson. Following a brief public comment period, the motion passed in a unanimously 5-0 vote.