Meeting of March 12, 2026

I'd like to call this meeting of the Davis County Fiscal Court to order. Today is March 12, 2026. Uh for those who uh might be wondering, Commissioner Condonder is joining us via Zoom. Um Commissioner Cassen, would you lead us with the opening prayer and the pledge, please? — Yes, Judge. Please stand if you're able and pray with me. Dear gracious God, we give you thanks for grass that's turning green, starting to grow, for the trees and flowers that are beginning to bud, and the reminder that we must wait because winter has not finished with us. Thank you for those among us that make the sacrifices to try and keep the rest of us safe. And please help our world to find peace and to seek our guidance in all things. Please be with us as a community to let your love and example of how we are to live be known to those around us. In your name we pray. Amen. I pledge allegiance to the flag — of the United States of America and to

the republic for which it stands. One nation under God, — indivisible, liberty, — liberty and justice for all. Okay, Brooke. First item — one, consideration for presentation a audit report for Davis County Fiscal Court for fiscal year ending June 30, 2025. — Mr. Johnson. — Yes, Judge. We have received the audit report for the year ended June 30th, 2025 in time for our disclosure requirements and compliance with KRS64810. Its availability has been advertised in the newspaper pursuant to KRS91A40 section 9 with respect to KRS424.145 section 4 subsection A. The full audit report is hosted on our website in the document center for any of the public who would want to review it. Because Davis County Fiscal Court receives more than $750,000 in federal awards each year, we are subject to a uniform guidance single audit, which was previously known as the OM Circular A133 audit, which is an extremely thorough organizationwide examination of our financial statements

and compliance with internal controls and federal and state requirements. The audit was conducted by the state auditor of public accounts or APA. To summarize the report, the audit contained a single finding of control deficiency regarding 19 dispersements of court approved items totaling approximately $10.59 million. Since the introduction of the county's purchase order system in 2016, finance has utilized the fiscal court minutes as the supporting document to demonstrate prior approval for items that are specifically approved by fiscal court. And this would be like bid awards, contracts, and other items that appear as agenda items that are approved through court. This process has been reviewed in the last nine audits since with no issues found. Beginning with this audit, the state auditor's office now recommends that a purchase order be generated with all relevant information for any such item immediately following court approval to demonstrate prior approval instead of utilizing the court minutes, hence the finding. Given that this process posed no issue in the last nine audits and given that several other counties have received the same finding in their audits released this year, it is indicative of a change in

interpretation by the state APA of the department for local government's regulations. And as a note, these regulations have not changed since 2016. So in summary, this finding is a clerical disagreement only and I have already modified our procedures to accommodate their recommended practice going forward. That said, the audit states we were in compliance with the Commonwealth of Kucky's regulatory basis of accounting and budget laws. All cash was accounted for with all revenues and expenses recorded appropriately, and there were no question costs or issues outside of a change in the process of demonstrating and documenting prior approval for court approved items. for the public's benefit as they review the finding. It should be noted that of the 19 dispersements totaling $10.59 million that were highlighted, each item was specifically approved by the fiscal court, and none of them resulted in inaccurate financial reporting, misappropriation of assets, cash flow problems, or claims being paid that were not valid obligations of the court. That is all I have to report, and I can entertain any questions you may have. — Thank you, Mr. Johnson. I don't have any questions at this time. Mr. Conder, since you're remote, do you have any questions or comments?

— I do not, Judge. Thank you for the uh for the request if I did. — Okay. Anyone here have any questions or comments? Okay. — Two. Consideration for approval. A minutes of February 26, 2026 Davis County fiscal court meeting. — Motion to approve. — Second. — Got a motion. Second. We've all had the minutes a few days to review. Uh do I hear any uh corrections, additions, deletions? — No. — No. — Hearing none. All those in favor signify by saying I. — I. — B. All claims for all departments. — Motion to approve. — Second. — Got a motion and second. These are all the bills. Claims are all the bills due and payable by Davis County Fiscal Court. Are there any questions for the treasurer? — No. — Hearing none. All those in favor signify by saying I. I — C fund transfers. — Motion to approve. — Second. — Got a motion. Second, Mr. Johnson. — Each year, fiscal court transfers unencumbered funds from the general fund to the jail fund to provide operating monies for the fund for that fiscal year based on budgeted expectations for both revenues and expenses. Over the last three years, the jail fund revenues have

underperformed from budgeted expectations due to various factors outside of Jailer Mager's control. This underperformance did not immediately impact the budget process because of the jail fund's cash reserve that serves to mitigate such variances. I'm requesting authority to transfer $2 million from the general fund to the jail fund to restore the reserve in preparation of the budget process. And after meeting with Jaylor Mager, we will adjust his budgeted revenues for the detention center accordingly in fiscal year 2627 to reflect the trending activity. As a note, these are funds we would otherwise uh have transferred in prior years. If the need had been immediate and the continuation of the trend had been known, the general fund has sufficient reserves to accommodate the transfer. I request your approval. — Thank you, Mr. Johnson. Any questions from the court? — Commissioner remarks, Mary. — Thank you, sir. So, this is like a cash advance basically that money would have gone anyway. Okay. Thank you. Anyone from the public have any questions or comments on this item? Hearing none. All those in favor signify by saying I. — I.

— D. Salaries of specific elected officials. — Motion to approve. — Second. — And a motion and second. Mr. Johnson. — Per KRS64.530. Prior to the month of May in any election year, the fiscal court must set the salaries of the county attorney, county coroner, and county commissioners for the upcoming term. In this case, the term of 2027 to 2030. These salaries otherwise cannot be altered within that term. Presented are the current salaries of those officials to be set as the base salary for the next term to be adjusted only by the COLA as calculated by the department for local government in accordance with KRS64.527. This document includes other compensation available to those officials through expense allowance and training incentive as directed by applicable statutes. — Thank you, Mr. Johnson. Any questions from the court? Commissioner. — Thank you, Judge. Just to reaffirm uh this document, this is the first one that this court I believe has ever reviewed andor about to approve, but this does not afford any representative, any elected official a raise. We are not giving ourselves a raise. Is that correct?

— Correct. — Thank you, Treasurer Johnson. Thank you, Judge. — Welcome, Commissioner. Anyone else? Uh, anyone from the public have any questions or comments about this item? Hearing none. All those in favor signify by saying I. — I. — I. — E. Grant application for Kentucky Pride Fund Composting. — Motion to approve. — Second. — And a motion is second. Mr. Johnson. — This application is for a Kentucky Pride Fund composting grant to purchase a compact track loader to upgrade the current composting program at the West Davis County landfill. This unit will replace an older skid steer unit that is experiencing daily mechanical failures and is at the end of its useful life. The grant request is for $97,822 with the county matching $24,455 to cover the full expense of the unit in the amount of $122,277.75. We apply for this grant annually to maintain the composting operation at the landfill and I see no issues. — Thank you, Mr. Johnson. Any questions or comments from the court? No. — Any questions or comments from the public? Hearing none, all those in favor