It seems that School District staff in Montgomery, MD failed to notify County council members BEFORE they approved the new annual budget of a $14.5-million surplus in funds due to savings in employee benefit expenses.
And, they found that the staff knew of the surplus cash before the budget agreements were reached.
Most times we hear about fiscal fiascos where government agencies later discover more expenses than planned in the budget, but this is a surplus.
Why would they hide the surplus and not disclose it to elected officials setting the budget?
- Plain mistakes.
- Plans to save the funds for some favored project or wage hikes later in the new budget year.
- Prevent elected officials from allocating the funds to projects not supported by staff or other elected officials.
But, by not disclosing the surplus funds, credibility of budget and financial processes and reports from staff are questionable, which is why the County Inspector General (no such position exists in most Florida Counties) decided to review the Districts financial reporting. Budget methods are NOT standardized like annual financial statements, and it is easy for staff to snafu, or purposely not disclose certain items since independent oversight on budget systems is rare.
Go to the link to read the Washington Post article.
vj
