MARSHALL — For a little over a decade, the Lyon County Auditor/Treasurer’s Office has played a key role in doing the accounting for the Lyon County Fair. But that will come to an end starting Jan. 1.

On Tuesday, members of the Lyon County Board voted to end the county’s status as fiscal host for the Lyon County Ag Society. It’s a role the county has filled since 2013.

“I don’t know that we’re adding any benefit by being their fiscal host,” said Lyon County Administrator Loren Stomberg. “It’s the only example of entities that we give appropriations to, where we hold their checkbook.”

Stomberg said splitting from the Ag Society could help keep the county from being exposed to potential liabilities. However, Fair Board treasurer Bob Richards said the concern was over “a non-issue.”

In August, the Ag Society and the county received a subpoena from the Minnesota Department of Revenue, as part of an investigation of the company providing the carnival at the Lyon County Fair. The subpoena asked for documentation including the gross receipts the company turned in to the fair, going back to 2018.

“Under no circumstances did we as the Fair Board do anything wrong. (The investigator) emphasized that over and over again. We did provide all the financial information to him,” Richards said. “To me, it’s a non-issue that we’re making an issue out of,” he said.

“Whenever we get a subpoena, that is an issue,” Stomberg said.

“That’s just one example of where the county has a liability, or a perceived liability, by being a fiscal agent for a nonprofit,” Stomberg said.

The county does serve as a fiscal agent or host for other organizations, like Southwest Health and Human Services. Stomberg said the difference with those agencies is that they are part of a joint powers agreement with the county. The county and the Ag Society are not part of a joint powers agreement, he said.

“We’re not an accounting firm for a nonprofit. We give them (the Ag Society) an appropriation that’s up to them do to with as they feel,” Stomberg said.

Stomberg said the county became fiscal host for the Ag Society through an action by the county board over 10 years ago.

“There was an issue with how the Ag Society was spending the appropriation back in 2013, and at that time a motion was made … that the county would give the Ag Society their $40,000 appropriation with the understanding that all of their checks run through the county,” he said.

Stomberg said he thought it was time to consider changing that practice.

“I also have some concerns,” Richards said. The office of treasurer for the Fair Board is a one-year elected term, and there were no guarantees that a future treasurer might not cause problems down the road, he said. The Fair Board also doesn’t have the same accounting tools and resources the county does, he said.

“As far as liability, what could be a greater liability than having a fair on county grounds?” Richards asked.

Lyon County Attorney Abby Wikelius said the issue with the county being the Ag Society’s fiscal host was that, if there ever was malfeasance by a member of the Fair Board, it would mean the county was involved, “at least minimally.”

“I think it’s a completely separate issue than the fair occurring on county property,” Wikelius said.

“I’m not trying to be disrespectful here, but I really feel it’s being pushed by the county because they don’t want to do our books any more,” Richards said.

In discussion, commissioners had mixed feelings on whether to stop doing accounting for the Ag Society.

“My concern is that they’re going to have to hire somebody to do this,” said Commissioner Tom Andries. That would be an additional cost for the Ag Society, or maybe for the county in terms of appropriations, he said.

“I would really like to see it continue, but I understand,” said Commissioner Gary Crowley. “I don’t want to continue under the assumption that we could be liable down the road for something. That’s my biggest hang-up.”

Commissioners voted 3-2 in favor of terminating the county’s fiscal agent relationship with the Ag Society, effective Jan. 1. Commissioners Andries and Crowley cast the votes against ending the relationship.