Around the state as public entities and their governing boards face the challenge of either restoring or maintaining fiscal balance and stability,they are receiving assorted advice regarding procedures and issues they should address in their planning.
Many concerns revolve around the administration of funds over a period of years and principles of accounting followed. Specifically, these officials are seeking needed guidance on both the type and validity of financial decisions of actions made in previous years.
The hope is that such insight can offer answers about the nature and scope of financial management changes required, and to what extent an entity placed itself at risk through its decision making. In most instances, the entities have consistently found themselves in situations where expenditures exceeded revenue. Among the findings or conclusions reached about problematic issues:
1. Frequent changes in finance director position.
2. The taking of money from fund balances to pay expenses.
3. Shifting or transferring money from special or specific purpose accounts.
4. Insufficient monitoring of expenses.
It is hoped that answers to these questions and concerns will resolve some issues to provide greater accountability measures in coming cycles and improved financial management process.