U.S. Bank questions service agreement with Grant County after failing to receive financial statements

EPHRATA — U.S. Bank is considering changes to their decades-old service agreement with Grant County, after they failed to receive financial statements from the county for the last two years.

"That's what stirred a visit from our customer service representative from U.S. Bank, to discuss possible concerns," said Grant County Treasurer Darryl Pheasant.

He said U.S. Bank first expressed concern last week, calling into question the future of their bank service agreement with Grant County.

Currently, the county and U.S. Bank operate under an agreement which gives the county more time to deposit money into its account to pay warrants, leaving the money available for investment and not sitting in a checking account.

"Our banking relationship has types of debt, things where moneys are paid on our behalf with the expectation that money is going to go into the account the same day," said Pheasant. "We've been honoring that all this time, but they are looking at those types of things, services they are providing us, and trying to determine what type of information they need to be allowed to continue following their own policies and continue providing those same services."

U.S. Bank is now demanding documentation for analysis, he said. The service agreement and services may change if the bank decides the documentation is inadequate.

"That's what our auditor is working on, trying to give them information that hopefully lets them continue to bring the same services that I have been using for decades," said Pheasant.

"It will make it much more difficult and make a lot more work than it does now" if U.S. Bank discontinues the service with the county, said Grant County Commission Chair Richard Stevens.

The only aspect different after decades is the county has not received audited financial statements for 2003 and 2004 from the Washington State Auditor's Office, he said.

"Basically, the bank has to make a determination about the financial health of the county," said Grant County Auditor Bill Varney. "So that they are not putting themselves at risk by continuing the agreement."

Varney sent the 2003 and 2004 financial statements to U.S. Bank, which will be used to evaluate the financial risk of the county.

"They are not audited, but we did have statements done," said Varney. "They're going to look at them and see if that is what they need to see."

Commissioner Stevens said the county is financially healthy and they are not borrowing money.