Gallatin County, external consultants search for source of $237K cash reconciliation mismatch, solutions for financial reporting
By Jen Clancey STAFF WRITER
On Sept. 25, 2025, Montana’s Department of Administration sent a letter to former Gallatin County Financial Officer Justine Swanson requesting a conference. Gallatin County had cash reconciliation findings in each audit report they had submitted to the department since the fiscal year that began on July 1, 2017, the letter stated.
Tardy financial and audit reports were also reported from fiscal years 2018 to 2024.
Behind the scenes at the Gallatin County Finance Department, staff and outside firms are trying to find the cause of mismatched cash reconciliations and a drawn-out audit process. After meeting with the Montana Department of Administration, county officials hope that finding the problem will ensure improved financial reporting in the future.
The department is focused on learning why bank statements tallied about $237,000 more than what the county’s financial system reported at the end of financial year 2023, and submitting audits and financial reports to the state.
Counties conduct cash reconciliations each month to make sure internal records of funds match bank statements. In Gallatin County’s case, the process showed mismatched numbers, despite the work being done monthly, County Administrator Jim Doar told EBS.
“The staff is reconciling the bank statements every month. They’re doing the work. They just can’t figure out where they don’t match. We’ve looked at every part of our organization that we can, whether it’s payroll accounts receivable, accounts payable,” Doar said.
In October 2023, the state’s Local Government Services Bureau reached out to Justine Swanson to offer technical assistance to the county’s finance office, noting continued concerns about insufficient processes and systems that hinder the office from reporting cash reconciliation accurately.
“LGSB offered the option of participating in a technical assistance plan to assist the County in resolving the significant findings. Our records indicate that Ms. Swanson agreed to send LGSB four months of reconciliations for review. An LGSB compliance accountant sent a follow up email and voice message on November 14, 2023,” the letter stated from Danielle Vincent, bureau chief. “I am unable to locate documentation that these reconciliations, or any reconciliations were submitted as indicated.”
The letter notes that the state is required to “withhold state financial assistance” if significant audit findings aren’t resolved. Doar and Deputy County Administrator Cola Rowley noted that the 2025 meeting with the state got officials on the same page about reconciling cash and submitting financial documents.
The state charges a $300 monthly penalty for late financial reports. As of late November 2025, the county has submitted their 2023 financial report to the state, eliminating that expense moving forward. Doar said that fine doesn’t compare to the effort the county is putting in to find the source of unbalanced cash reconciliation.
“We’re embarrassed a little bit that we’re paying a fine and we haven’t been able to figure this out for sure, as a professional staff, but the fine is so insignificant compared to the resources that we’re putting into trying to find where this is coming from,” Doar said. Multiple external firms and consultants have taken a stab at sorting through Gallatin County’s financial software, Rowley explained.
The county uses two Tyler Technologies’ programs, TaxWise and Munis, to calculate finances of 80 districts—not including RIDs. It’s possible the intricate overlap of systems is contributing to the issue, Doar explained.
Rowley noted that technical issues with the county’s payroll system could also contribute to mismatched cash and that the county has already made fixes to this system with a consultant working to make sure financial reporting continues to run smoothly.
The county is currently operating without a chief financial officer after former head Justine Swanson resigned abruptly at the end of September. Doar described Swanson as a “phenomenal employee,” and Swanson did not state a reason for resigning.
When asked if Gallatin County’s tax miscalculation affecting the Big Sky Fire Department is connected to the cash reconciliation concerns the county is resolving, Doar said no. The tax miscalculation, reported on Sept. 25, resulted in an over-collection from Gallatin County taxpayers in Big Sky supporting the fire district over four years, and reduced BSFD’s future annual budget by $2.3 million and immediately reduced planned revenue for this year. A date is expected to be set for a Q&A with the public and fire department and county officials about the incident.
The county administrative team highlighted the time and money put toward improving financial reporting and systems, as well as finding the cause of cash reconciliation woes.
“We definitely have put a lot of resources into it. I think that it’s kind of easy to have a narrative that we either aren’t doing anything or haven’t done anything, but we have had several consultants on board,” Rowley said. She noted that multiple firms haven’t been able to find the source of the problem.
As external experts continue to examine financial reporting systems in Gallatin County, Doar assured that the county is committed to solving the issue.
