County Treasurer Works to Balance County Books
Author: Nancy Marks, MT43 News Reporter
Nancy Marks
MT43 News Reporter
County Treasurer and Superintendent of Schools Melissa Franks would like to balance the county books before she finishes her term this coming January. Franks was appointed in 2021 when then Treasurer Doug Ellis resigned. She ran for office and was elected and took office in January 2022. She will not run for another term as Treasurer.
Franks’ office and the County Commissioners received an official letter in September of 2025 informing them that Franks’ books were not reconciled after a final audit from an independent auditor. The letter, from Montana Department of Administration Local Government Services Bureau Chief Danielle Vincent, stated the county’s books were off $322,789.93 and until this number was reconciled, the state would put guardrails on the county. Depending on the progress of the treasurer’s office in reconciling the books, the state began withholding some federal funds, and including Montana Coal Endowment grant monies, Justice Court Collection, crime victims' assistance and the county department of health, according to Commissioner Debi Randolph.
In an interview with Randolph and Franks, Franks explained her office had received email notices from Local Government Services Office in September and November of 2025.
Franks said she does not know exactly when the trouble started for the Treasurer’s office. “Everything balanced when (former treasurer) Doug Ellis finished his term. When I began to see problems, I went to other county treasurers for help. Each county has its own way of doing books, so I found little help from them. Eventually, I learned about getting help from Montana Association of Counties’ finance department and director Nancy Everson.”
Together, they began to lower what is called an “outstanding variance.” Everson helped the office set up processes and procedures for reconciling cash entries, according to MACO Communications Director Shantil Siperas.
Franks and Deputy Treasurer Brenda Harris have put in many hours of work to balance up through January and February 2026. Those months were in agreement except for $217, 645. “That’s the number we have started with. We believe $40,000 will be realized in School District #1 as we start looking. She works with the District Office Clerk.
Franks receives and distributes funds to the School District as the County Superintendent of Schools, whereas District School Superintendent Brad Racht handles all the schools’ other departments, such as sports, transportation payroll and building maintenance and including the School District budget. When longtime clerk Pam Watson resigned, a lot of turnover took place in the position, Franks said, so reports were not being sent in a timely manner. “We are hoping to find the missing numbers somewhere in that time period,” she explained.
Franks explained in doing cash reconciliation, one of the biggest problems is checks sent out for payment that the vendor does not cash. “Then we are carrying over that check on our books, so next month does not balance,” she pointed out.
The current value of those uncashed checks is approximately $115,000, according to County Finance Administrator Bill Jarocki. “If someone has an uncashed check whose date is within the statute of limitations, they can bring it to the Treasurer’s office to have a new check written and cash it.”
The department has been able to balance the books for the last three months. “We know we’re on the right track looking for the numbers,” she explained, “We have set up a spreadsheet which we balance weekly against the office’s Black Mountain software. This is a new procedure we have introduced.”
The present goal is to explain where to find the $217,645. “It is not missing, but it is not showing on the spreadsheets where it should be,” Franks explained.
To better understand the complexity of county finance, Randolph explained that the Treasurer’s office deals with incoming revenue such as property and vehicle taxes, grants, state funds and mill levy monies. Each county department proposes its own budget, then presents it to the commissioners for review and approval. Those funds are paid through the County and Payroll Director Debbie Kelley. The Treasurer’s office earmarks funds for each department to cover the budgets.
Asked how the county continues to operate on fewer funds from Local Government Services Bureau, Randolph explained the county continues to pay its bills despite the current shortage: “Right now it doesn’t affect our departments since we have reserves in the general fund for every department,” Randolph pointed out, “but eventually if we don’t get this solved, we will feel the pinch.”
Randolph said overall it has had a good effect on how the office operates: “We have updated our policies and procedures for handling income and payout.”
Randolph said at some point the Treasurer’s Office will work with their independent auditor. He has been involved but will begin a formal audit at some point. Should the office not be able to find the elusive funds, the commissioners could obtain specific services to have a forensic audit: “That would cost much more than the funds we can’t find. In the meantime, we’ll keep looking.”
Franks has reported monthly at Commissioners’ meetings on the progress of the hunt for unreconciled cash monies. She is available for questions from the public during public comment at Commissioners’ Meetings Wednesdays at 10;00 a.m. at the Flynn Building.
Article Images
Click on Image Thumbnail(s) to view fullsize image
PhotoCredit: File photo
Image 1 Caption: Broadwater County Treasurer's Office at the courthouse
Photo Provided
