With the intent of getting more objective financial guidance in the future, the Platte County Commission has entered into an agreement with an independent consultant.
Commissioners approved a service agreement with UHY Advisors at the Tuesday, Feb. 19 regular administrative session. The agreement comes with no dollar amount attached, as commissioners state services will vary. Funding will come from a newly-established professional services line item in the county budget, which contains about $35,000.
Presiding commissioner Ron Schieber said the idea arose due to the aftermath of the financial crash of 2008. He said financial decisions made in the past relied upon advice from those who may not have had the county’s best interests at heart — such as ratings firms that have downgraded the county’s bond rating in the wake of the Zona Rosa default.
Former Missouri state auditor Tom Schweich suggested in a memo following the 2008 crash that municipalities, counties and other entities engage an independent financial advisor to prevent entanglements in risky financial ventures.
The county’s move is based on Schweich’s advice.
“This is a great first step, since this county has never had this type of service and has relied wholly on underwriters, bond counsel, Moody’s and Standard and Poors to set policy and we know where that’s gotten us today,” Schieber said.
Additionally, the consultant will look at the county’s budget process and provide an independent opinion on projections, cash carryover and how the county can leverage these funds.
Kansas City North resident David Park, who ran against Schieber in the November general election and has attended commission meetings for months, suggested the agreement include a scope of services and a maximum spending cap.
“You’re going to hamstring the commission and the advisor by saying you can only spend ‘X’ dollars,” Schieber said. Services and the cost entailed could vary, he said, so budgets would be set according to the project at hand.
UHY Advisors is a subsidiary of the UHY accounting firm, which was created through the merger of several regional firms in 2000. The firm provides audit and assurance services, advising, internal audit, risk and compliance and other services.