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KITTITAS COUNTY <br />BOARD OF COUNTY COMNIISSIONERS <br />STAFF REPORT FOR <br />STUDY SESSION <br />Auditor <br />STUDY SESSION DATE: 02-19-2026 <br />TOPIC: Unemployment Compensation fund balance & payroll deductions <br />ACTION REQUESTED: Discussion <br />LEAD STAFF: Andrew Yoder <br />RECOMMENDATION: Discuss history and impacts to UIC Fund and plan of action to <br />maintain health. <br />BRIEFING SUMMARY: The Unemployment Compensation Fund balance has depleted <br />to a level that will require payroll contributions once again. <br />BACKGROUND: In 2022, the Board of County Commissioners elected to cease payroll <br />contributions to the Unemployment Compensation fund due to a growing fund balance. <br />The county has been paying expenses from the accumulated balance since that point. <br />Equifax administers unemployment claims for the county on a reimbursable basis. They <br />pay the claimant, then bill the county for the cost as well as for administrative services. <br />Through the 2024 Accountability Audit, it was discovered that selected claims <br />reimbursements had been missed, dating back to 2020-22. This was likely due to staff <br />turnover between the Auditor's Office and Human Resources. As of Quarter 3, 2025, this <br />balance (plus interest) has accumulated to roughly $53,000.00. <br />FISCAL IMPACTS: Fund balance is approximately $91,000.00. If the fund were to <br />absorb the entirety of the $53,000.00 due, the remaining balance would be about <br />$38,000.00. Over the previous 4-year period, the average annual expenses equaled <br />$35,500.00, so the fund would have roughly one year's worth of reserves at that point. <br />Should the Board decide, payroll contributions may be initiated, with the goal of <br />maintaining fund balance only. The chosen rate would be reevaluated at year-end and <br />readjusted based on fund balance and projected payroll for the following year. <br />Based on 2026 projected payroll, a rate of 0.1 % was calculated to yield contributions to <br />match the $35,500.00 expected expenses. <br />ATTACHMENTS: <br />• None <br />Page 1 of 2 <br />Auditor "Study Session Staff Report", 02/19/2026 <br />