Post by Oscar Knight on Jul 27, 2011 10:00:28 GMT -6
Clayton officials were warned of overspending in 2007, records show
County finance director never made commission aware, chairman says
en.newspeg2.com/Clayton-officials-were-warned-of-overspending-in-2007,-records-show-17937310.html
www.ajc.com/services/content/metro/clayton/stories/2008/11/19/clayton_county_budget.html?cxtype=rss&cxsvc=7&cxcat=13
www.allvoices.com/news/1829015/s/23599157-clayton-officials-were-warned-of-overspending-in-2007-records-show
en.newspeg2.com/Clayton-officials-were-warned-of-overspending-in-2007,-records-show-17937310.html
www.ajc.com/services/content/metro/clayton/stories/2008/11/19/clayton_county_budget.html?cxtype=rss&cxsvc=7&cxcat=13
www.allvoices.com/news/1829015/s/23599157-clayton-officials-were-warned-of-overspending-in-2007-records-show
By MEGAN MATTEUCCI
The Atlanta Journal-Constitution
Wednesday, November 19, 2008
The Atlanta Journal-Constitution
Wednesday, November 19, 2008
Financial auditors warned Clayton County officials almost a year ago that they were overspending and not properly recording county expenses.
Records show Clayton officials ignored the auditors’ warning and spent $22 million of the county’s reserve funds.
The overspending has caused the county’s savings to dip close to the minimum required by the state. Low reserves also mean the county likely will have to pay millions more in interest for bonds, said Edmund Wall, the county’s financial advisor.
“This is huge,” said Wall, who was hired last month. “Not only will it hurt us in the bond market, but if the savings go down to nothing, the county will have to go borrow money to meet payroll, cut services or raise taxes.”
On Tuesday, the Clayton County Commission learned its reserves dropped from $42 million in June 2007 to $20 million in October 2008.
The state requires the county to keep at least 10 percent of its $168.7 million budget, or about $17 million, in reserve. It costs $20 million a month to run the county, Commission Chairman Eldrin Bell said.
Commissioners authorized the spending — including $11.8 million on 1,860 different expenditures — but did not know the county was spending above its budget, Bell and Wall said. “The board of commissioners weren’t told they were spending savings,” Wall said.
Commissioner Wole Ralph said there is nothing to be alarmed about because auditors did not find any abuse or waste.
“I’ve been an auditor before and I have an accounting degree. Every audit finds areas that need to be addressed to better manage finances,” Ralph said. “We’re not in a crisis.”
Bell said county finance director Angela Jackson never informed the commission of the county’s financial troubles, including a letter from auditors detailing problems.
In December, auditors KPMG sent the commission a letter saying it found “significant deficiencies” in the county’s financial records. Auditors specifically noted that the county did not properly record $3.4 million in lawsuit expenses.
The county also recorded revenue in the wrong accounts and delayed in reporting other financial information, causing inaccuracies on financial reports, auditors wrote. At times, employees in the parks and recreation department delayed in depositing money.
The auditors recommended an overhaul in the county’s financial procedures and asked for explanation of the “inconsistencies.” Bell said the letter was sent to Jackson, but she never responded and the recommendations were never addressed. The county now is investigating.
Jackson did not return two phone calls nor an e-mail seeking comment Wednesday.
KPMG has also delayed completing an audit of Clayton’s fiscal year 2008 finances, saying auditors can’t rely on information from the county finance department.