I hear that there's an unexpected shortfall in funds at Walton Schools. How can this be? Didn't the district just make a deal to buy a costly tract of land?
School District broke?
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As reported on WZEP AM 1460
As the Walton County School Board meeting started, the Walton County Taxpayer’s Association’s Bob Hudson had several questions. Hudson asked for the timeline of discovery of the budget shortfall. He said it appears the fund balance went down quickly and asked when the Board became aware of the drop to 2.2%. Sharon Roberts said she met with the Superintendent on Friday. Mark Davis said he talked to the Superintendent on the phone and they only talked about the drop, not the numbers. Superintendent Anderson said Tuesday was the first time she saw there was a possibility the fund balance would drop below the 3%.
Anderson said the year end budget amendments can have a budget overrun and they place it in a category or make a budget amendment. She said they have had a healthy fund balance in the previous years she has been Superintendent, but this year they were close to the balance dropping to 3%.
Hudson asked what the Superintendent and Board looked at to make sure this does not happen again. Davis said, since it happened the week before, they have not done anything yet. He said they are looking at better reporting so they will know where they are. Hudson said it is the Superintendent’s job to make sure they stay in budget.
Anderson said she went to Tallahassee and asked for help in finding out what happened. She said Jim Hamilton was sent to assist and was given the budget to look at ways to help. Anderson also discussed the matter with the Education Commissioner, has drafted a letter formally informing the department of the issue, and has begun working on solutions including a fund balance greater than 3%.
Hudson, who is a CPA, said he believes they need someone with a skillset beyond what a bookkeeper can provide. He asked the Board to look at the qualifications of the district’s CFO. Hudson also asked for an audit to make sure the numbers are believable. He told the Board he is trying to help.
Davis said the budget was balanced, though they used the fund balance as they have in the past years. He said the difference this year was the large amount and going below the three percent. Davis agreed they never plan to go below the three percent.
Suzanne Harris asked the Board to pass a motion to have an auditing company do a forensic audit and have a CPA firm come in and project where they will be. She also asked for a report on exactly what happened and when it happened. She said they need to get someone qualified to handled the budget. Harris told the Board they have a mess.
As the Walton County School Board meeting started, the Walton County Taxpayer’s Association’s Bob Hudson had several questions. Hudson asked for the timeline of discovery of the budget shortfall. He said it appears the fund balance went down quickly and asked when the Board became aware of the drop to 2.2%. Sharon Roberts said she met with the Superintendent on Friday. Mark Davis said he talked to the Superintendent on the phone and they only talked about the drop, not the numbers. Superintendent Anderson said Tuesday was the first time she saw there was a possibility the fund balance would drop below the 3%.
Anderson said the year end budget amendments can have a budget overrun and they place it in a category or make a budget amendment. She said they have had a healthy fund balance in the previous years she has been Superintendent, but this year they were close to the balance dropping to 3%.
Hudson asked what the Superintendent and Board looked at to make sure this does not happen again. Davis said, since it happened the week before, they have not done anything yet. He said they are looking at better reporting so they will know where they are. Hudson said it is the Superintendent’s job to make sure they stay in budget.
Anderson said she went to Tallahassee and asked for help in finding out what happened. She said Jim Hamilton was sent to assist and was given the budget to look at ways to help. Anderson also discussed the matter with the Education Commissioner, has drafted a letter formally informing the department of the issue, and has begun working on solutions including a fund balance greater than 3%.
Hudson, who is a CPA, said he believes they need someone with a skillset beyond what a bookkeeper can provide. He asked the Board to look at the qualifications of the district’s CFO. Hudson also asked for an audit to make sure the numbers are believable. He told the Board he is trying to help.
Davis said the budget was balanced, though they used the fund balance as they have in the past years. He said the difference this year was the large amount and going below the three percent. Davis agreed they never plan to go below the three percent.
Suzanne Harris asked the Board to pass a motion to have an auditing company do a forensic audit and have a CPA firm come in and project where they will be. She also asked for a report on exactly what happened and when it happened. She said they need to get someone qualified to handled the budget. Harris told the Board they have a mess.
Money for land purchases comes out of a different pot of money- the capital fund. By law, it can't be used for operating expenses. (Disclaimer- just giving the facts of how district money can be spent, as I am just as ticked as everyone else about the mismanagement at the district office level).
This all is more evidence supporting the fact that the school district is a mess. This is what you get when you have a politician in charge and not a manager and a leader. I recall before the election there was a candidate forum in Freeport and Mrs. Anderson cited her "political connections" as an advantage over her opponents. This should also support the argument for an appointed superintendent.
They are now looking for a Chief Financial Officer (CPA). It's amazing that it's taken this long.
This school district needs a serious house cleaning. Starting at the top.
This school district needs a serious house cleaning. Starting at the top.
As reported on WZEP AM 1460
The Walton County School Board is to meet at 5pm this afternoon for a budget workshop. The workshop comes after the Board found the Fund Balance has fallen below the 3% they want to stay at or above. While the current 2.2% is not considered a financial emergency, Superintendent Carlene Anderson has said she wants to find ways to cut the budget and get the Fund Balance back at 3% or even greater.
The last meeting, where the budget for the end of the fiscal year was presented with the need to transfer from the Fund Balance, ended with Board member Sharon Roberts angrily saying she considered the drop in the balance almost criminal.
While the news of the drop came suddenly, the reasons were presented. Over several years the Board has agreed to use the Fund Balance as a way to make sure the end of the money year balances with what came in and what was spent. The Fund Balance was built up during good financial times, but with the economic problems nationally, the account has dwindled. While the Board was told the trends showed an increase, that increase did not come until this year, several years later.
Former Finance Director Jim McCall put building the balance as a priority and retired from the job with it already being used to keep the budget in line. Mary Hobbs, a 27 year employee and long time assistant to McCall, took over the job and has kept the fund balance from being used or not being used much for two years. Hobbs took the brunt of Robert’s wrath as well as concerns expressed by other Board members. Audience members Suzanne Harris and Don Riley also commented on the situation and called for hiring someone with a CPA or equivalent. Harris echoed Robert’s comment that the sudden drop could be criminal.
While the reasons for the need to transfer from the Fund Balance to shore up the budget was shown, the exact cause of the sudden drop in a budget that was ongoing was not revealed. One of the biggest factors was payments for a previously unreported increase in charter students. It was not revealed why the information did not show up before the end of the fiscal year. Several who made comments against CFO Hobbs held her, along with the Superintendent, accountable. So far it has not been revealed if the lack of notice creating the sudden drop was something Hobbs missed or if the information and lack of it came from another source.
The Walton County School Board is to meet at 5pm this afternoon for a budget workshop. The workshop comes after the Board found the Fund Balance has fallen below the 3% they want to stay at or above. While the current 2.2% is not considered a financial emergency, Superintendent Carlene Anderson has said she wants to find ways to cut the budget and get the Fund Balance back at 3% or even greater.
The last meeting, where the budget for the end of the fiscal year was presented with the need to transfer from the Fund Balance, ended with Board member Sharon Roberts angrily saying she considered the drop in the balance almost criminal.
While the news of the drop came suddenly, the reasons were presented. Over several years the Board has agreed to use the Fund Balance as a way to make sure the end of the money year balances with what came in and what was spent. The Fund Balance was built up during good financial times, but with the economic problems nationally, the account has dwindled. While the Board was told the trends showed an increase, that increase did not come until this year, several years later.
Former Finance Director Jim McCall put building the balance as a priority and retired from the job with it already being used to keep the budget in line. Mary Hobbs, a 27 year employee and long time assistant to McCall, took over the job and has kept the fund balance from being used or not being used much for two years. Hobbs took the brunt of Robert’s wrath as well as concerns expressed by other Board members. Audience members Suzanne Harris and Don Riley also commented on the situation and called for hiring someone with a CPA or equivalent. Harris echoed Robert’s comment that the sudden drop could be criminal.
While the reasons for the need to transfer from the Fund Balance to shore up the budget was shown, the exact cause of the sudden drop in a budget that was ongoing was not revealed. One of the biggest factors was payments for a previously unreported increase in charter students. It was not revealed why the information did not show up before the end of the fiscal year. Several who made comments against CFO Hobbs held her, along with the Superintendent, accountable. So far it has not been revealed if the lack of notice creating the sudden drop was something Hobbs missed or if the information and lack of it came from another source.
As reported on WZEP AM 1460
Walton School District Chief Financial Officer Mary Hobbs has taken vacation until the end of July and is considering resigning or retiring. This according to Superintendent Carlene Anderson as the first budget workshop started. She said Hobbs notified the district last week. They have already posted an advertisement and over the next few weeks will be looking for someone qualified.
This leaves the Walton School District without a CFO at the start of the budget process. Hobbs has worked with the District for 27 years and worked under former CFO Jim McCall.
Chair Faye Leddon asked to have an audit. She said her recommendation comes from the recent situation and that the district has lost some credibility with the public. She said her recommendation has nothing to do with the CFO, rather to help answer questions. Since the meeting was a workshop, the attorney suggested they place the item on the next agenda.
Member Mark Davis said, since they do not have a CFO, they should wait until they get an interim CFO or simply wait for the audit that will be done soon anyway. He also said he has ideas with compliance monitoring.
Member Dennis Wallace said he understands $800,000 resulted in the Fund Balance being 2.2% instead of 3%. He said there are just a couple of areas where the items were under budget and caused the transfer of funds bringing the balance3 below what the Board wanted. He asked if they had put any scrutiny as to why this occurred.
Superintendent Anderson asked for help from the state to assist with preparing the TRIM Notice and helping with the budget. A former CFO and CPA has been tapped to help meet the budget dates as defined by law.
Anderson said they will be looking for something very job specific. Davis asked to put the job description on the next agenda, noting they have advertised for someone with a CPA.
Davis noted the Certificate of Taxable Value came in at 12% more than last year. The TRIM Notice is where the Board can set the millage and can later reduce, but can not easily increase it. Wallace asked that the targeted Fund Balance include a mechanism to reach the level the Board sets. Anderson agreed, saying there will be a line item for the unassigned Fund Balance.
The Board talked about the audit and if they need a forensic audit. Anderson said the person from the state said he does not understand why they would need a forensic audit since these are used when there is a possible criminal problem. While Board member Sharon Roberts said in a previous meeting that she feels the drop in the Fund Balance is criminal or at least close to it, Attorney Ben Holley said he reviewed the audio of the meeting and does not see anywhere that indicates it is criminal. He said at the most there might be an incompetence. While the various budget shortfalls were announced, the reason for the late notice has not been established.
Walton School District Chief Financial Officer Mary Hobbs has taken vacation until the end of July and is considering resigning or retiring. This according to Superintendent Carlene Anderson as the first budget workshop started. She said Hobbs notified the district last week. They have already posted an advertisement and over the next few weeks will be looking for someone qualified.
This leaves the Walton School District without a CFO at the start of the budget process. Hobbs has worked with the District for 27 years and worked under former CFO Jim McCall.
Chair Faye Leddon asked to have an audit. She said her recommendation comes from the recent situation and that the district has lost some credibility with the public. She said her recommendation has nothing to do with the CFO, rather to help answer questions. Since the meeting was a workshop, the attorney suggested they place the item on the next agenda.
Member Mark Davis said, since they do not have a CFO, they should wait until they get an interim CFO or simply wait for the audit that will be done soon anyway. He also said he has ideas with compliance monitoring.
Member Dennis Wallace said he understands $800,000 resulted in the Fund Balance being 2.2% instead of 3%. He said there are just a couple of areas where the items were under budget and caused the transfer of funds bringing the balance3 below what the Board wanted. He asked if they had put any scrutiny as to why this occurred.
Superintendent Anderson asked for help from the state to assist with preparing the TRIM Notice and helping with the budget. A former CFO and CPA has been tapped to help meet the budget dates as defined by law.
Anderson said they will be looking for something very job specific. Davis asked to put the job description on the next agenda, noting they have advertised for someone with a CPA.
Davis noted the Certificate of Taxable Value came in at 12% more than last year. The TRIM Notice is where the Board can set the millage and can later reduce, but can not easily increase it. Wallace asked that the targeted Fund Balance include a mechanism to reach the level the Board sets. Anderson agreed, saying there will be a line item for the unassigned Fund Balance.
The Board talked about the audit and if they need a forensic audit. Anderson said the person from the state said he does not understand why they would need a forensic audit since these are used when there is a possible criminal problem. While Board member Sharon Roberts said in a previous meeting that she feels the drop in the Fund Balance is criminal or at least close to it, Attorney Ben Holley said he reviewed the audio of the meeting and does not see anywhere that indicates it is criminal. He said at the most there might be an incompetence. While the various budget shortfalls were announced, the reason for the late notice has not been established.
http://defuniakherald.com/?p=7853
By ALICIA LEONARD
Walton County School Board (WCSB) member Gail Smith succinctly summed up the overall mood of the board the evening of June 30, 2014 when she said far into the meeting, “we’re in deep caca” after learning there was close to a $400,000 unexpected hole in the general unassigned fund.
The budget amendment meeting, a usual occurrence as the district closes the books on the 2013-2014 year, sometimes drew harsh observations from residents, members of the Walton County Tax Payer’s Association(WCTA) and local teacher/union representatives during the meeting. Underestimated expense payouts for close to 90 charter school students and $125,000 moved to make the lunch program “break-even” pulled the general fund for the district below the state’s mandatory 3-percent reserve guidelines.
According to Walton School District Financial Director Mary Hobbs, the discrepancies were noted the last week of June, and Superintendent Carlene Anderson notified board members on June 27 that the general fund balance had fallen to possible emergency amounts. As the books were continued to be worked through, funds were found that brought the balance of the general fund up to past 2 percent of reserves. Falling below 2 percent is considered an “emergency” situation for a district.
“We just underestimated the loss of the revenue we were going to have to pass onto them,” said Hobbs, speaking about the funds payed out to charter schools for their students. Transportation cost increases also factored into the falling balance in the general fund, as well as much higher than anticipated payouts to substitute teachers and bus drivers. The district had 62 unexpected Leaves of Absence this past year. Attorney fees for the impasse negotiations, as well as the cost of covering Anderson for the suit involving a teacher suspension cost the fund an additional $60,000.
Board member Sharon Roberts asked Hobbs, “What’s the bottom line
here?” Hobbs responded, “there is still a lot coming in as we close out the year, but we are estimating the unassigned fund balance will be $1,437,000.” That would put the fund balance somewhere around 2.2 percent.
Roberts asked, “so, you found some from between Friday to today?” Hobbs
responded “yes,” and Anderson responded, “it’s not so much finding, but putting items in the right place.”
Anderson added, “we are expecting a small amount of revenues, but we are not expecting any more expenditures.”
Roberts said, “my question is how did we get to this point. At the beginning of the year you are given parameters to follow, and now we’re outside of the parameters, so, can someone, anybody, explain to me how we got this?”
Anderson responded that the big ticket items such as the charter student expenses and the transfer to food services were behind most of the fund’s decrease. “Last year we had to supplement the food service program by $350,000, so I think $125,000, although I don’t like to supplement it at all from general operating, we’re going in the right direction.”
Hobbs told the board that the district had received the tax deed sales of almost $300,000, but this was included in the balance the board was looking at. Anderson told he board “I’m hoping to cut two million in expenditures” for the next budget cycle. “I know that’s lofty, but that’s what I’m looking at.” If Anderson is able to realize those cuts, it would bring the unassigned fund balance for the next budget cycle to around 3.7 percent.
Hobbs said they had received the tax certificates from Patrick Pilcher’s office and they had increased 13.2 percent over the estimated revenue. The board could not get too excited over the increase, because the Legislature will increase Local Required Effort (LRE) if a county exceeds their expectations in local revenue. The more brought in locally, the less the state supplies for the district.
Smith said “customarily when we get to this point each year. How we spent, how we budgeted, years ago our fund balance was huge and every year it seems to get littler and littler, and now we are to the point it’s significant in the sense that we’re told it can’t be less than three and it’s now less than three. Quite honestly, it’s been dwindling.” Smith continued, “shouldn’t we consider some safety net, where we revisit, because this is kinda late to be discovering this. If we have protocols in place and maybe we do, but history looks like this happens, and happens and happens and now we’re in deep caca.”
Hobbs said, “we were so close to the 3 percent that any kind of unforeseen
expenditure – ” before Smith responded, “but we’ve been having that conversation about we’re right on that teeter/totter line and if anything happens we’re going to be slipping over. But, I guess my question is if this has been historically happening, then we need to do business differently?”
Board Chair Faye Leddon reminded members she had asked Anderson when working on next years budget if there was some place to set aside a type of “rainy day” fund. Anderson responded under new budget rules there was a place to set something aside and “it would be my desire, and it may not be doable this budget cycle, but I would like to see the board have three million set aside, in order to handle these things that always seems to happen at the end of the year to a small degree. This year it was to a little bit of a larger degree.”
Roberts said she wanted to address what had been said, “Mrs. Smith you said a while ago that it’s basically that it happens. No ma’am it doesn’t just happen and you not know that it’s coming. Mrs. Hobbs, every day when you pull up the screen, you can tell where we are in the fund balance. This is not something that slipped up on you overnight. And, you’re just now telling this board this? Once a month we get a financial statement and we’ve been well within our 3 percent. There is no way that these unassigned fund balances, on the last day has jumped up to what I’m being told that it is. Now, it just does not happen that way.”
Hobbs responded, “how do you foresee sub costs?” Roberts replied, “Mrs.
Hobbs, subs are not paid at the end of the year, they are paid all during the year and you see those expenses come in as they are paid out. Now, you may sell the rest of this board that but you will not sell me on that. There is no way you could have foreseen this coming, and inform this board of the state that we’re in and it’s completely unacceptable. We gave you all a balanced budget to follow and it has been exceeded. And in my mind, it’s criminal.”
Anderson responded that if it was criminal it has been so for many, many years and under the former chief financial officer, they had budget amendments at the end of every year. “When you have a budget this large, you will have budget amendments, the difference being in the past we have had a fund balance to cover this,” she added.
Roberts responded, “when that occurred in the past we knew it was occurring. But this, when we learned about it last Friday, you thought you had a .5 but then you found a 1.6 and now today it’s 2.2. Ladies and gentlemen of this board, and the folks sitting here, you’ve heard me six or eight months ago question the superintendent and I told her that I could no longer trust her to make sound decisions for the Walton County School District, and here we are.”
After more discussion, resident Susan Harris questioned Hobbs at great length about her qualifications to hold her position without a
degree in accounting and the budget itself. Harris added, “I’ve never spoken to Sharon Roberts outside of this room, and if I saw her on the street I probably would not recognize her, but I think what she said, I think this is criminal to have a $100 million dollar, and not have somebody with an accounting degree doing your budget for you. That is a disaster.”
WCTA President Dr. Don Riley said he was concerned with the “last-minute” frenzy around the fund balance issue and added “there are people in the financial field who are credentialed and experienced in what you are dealing with. This wheel has been invented.”
Pay outs to collegiate high school, an expense the district picked up last year, as well as fluxes in changing school students counts are other issues Anderson cited in budgeting. Roberts responded, “there is no way you have not known this for some time.”
Other issues discussed were the possibility of where future cuts would come from included possibly not replacing staff that are retiring or leaving, and program and service cuts, but none were outlined more than others. Anderson and the Board both responded that cutting teacher positions, non-instructional positions and programs were all something they were not supportive of and would work to keep them from happening. The board is the only body that could reduce the workforce for the district.
Leddon added, “I am unhappy we are here, but as we start the new budget, I think as a board we need to come up with some things to prevent this from happening again.” Roberts responded that the board needed accurate information to predict coming trends in expenses.
“Without accurate information, inaccurate decisions are made,” Roberts
added.
Davis said the board may have to overestimate the amount of student
payouts to keep this from happening in the future.
The board moved 3-1 with Roberts being the nay vote to pass the
budget amendment. They also moved to pass personnel recommendations 4-0.
The first budget workshop for the 2014-2015 year is scheduled for July 7 at 5 p.m., with a tentative budget to be set by July 24. To see more about the district and times for meetings and workshops, go to www.walton.k12.fl.us.
By ALICIA LEONARD
Walton County School Board (WCSB) member Gail Smith succinctly summed up the overall mood of the board the evening of June 30, 2014 when she said far into the meeting, “we’re in deep caca” after learning there was close to a $400,000 unexpected hole in the general unassigned fund.
The budget amendment meeting, a usual occurrence as the district closes the books on the 2013-2014 year, sometimes drew harsh observations from residents, members of the Walton County Tax Payer’s Association(WCTA) and local teacher/union representatives during the meeting. Underestimated expense payouts for close to 90 charter school students and $125,000 moved to make the lunch program “break-even” pulled the general fund for the district below the state’s mandatory 3-percent reserve guidelines.
According to Walton School District Financial Director Mary Hobbs, the discrepancies were noted the last week of June, and Superintendent Carlene Anderson notified board members on June 27 that the general fund balance had fallen to possible emergency amounts. As the books were continued to be worked through, funds were found that brought the balance of the general fund up to past 2 percent of reserves. Falling below 2 percent is considered an “emergency” situation for a district.
“We just underestimated the loss of the revenue we were going to have to pass onto them,” said Hobbs, speaking about the funds payed out to charter schools for their students. Transportation cost increases also factored into the falling balance in the general fund, as well as much higher than anticipated payouts to substitute teachers and bus drivers. The district had 62 unexpected Leaves of Absence this past year. Attorney fees for the impasse negotiations, as well as the cost of covering Anderson for the suit involving a teacher suspension cost the fund an additional $60,000.
Board member Sharon Roberts asked Hobbs, “What’s the bottom line
here?” Hobbs responded, “there is still a lot coming in as we close out the year, but we are estimating the unassigned fund balance will be $1,437,000.” That would put the fund balance somewhere around 2.2 percent.
Roberts asked, “so, you found some from between Friday to today?” Hobbs
responded “yes,” and Anderson responded, “it’s not so much finding, but putting items in the right place.”
Anderson added, “we are expecting a small amount of revenues, but we are not expecting any more expenditures.”
Roberts said, “my question is how did we get to this point. At the beginning of the year you are given parameters to follow, and now we’re outside of the parameters, so, can someone, anybody, explain to me how we got this?”
Anderson responded that the big ticket items such as the charter student expenses and the transfer to food services were behind most of the fund’s decrease. “Last year we had to supplement the food service program by $350,000, so I think $125,000, although I don’t like to supplement it at all from general operating, we’re going in the right direction.”
Hobbs told the board that the district had received the tax deed sales of almost $300,000, but this was included in the balance the board was looking at. Anderson told he board “I’m hoping to cut two million in expenditures” for the next budget cycle. “I know that’s lofty, but that’s what I’m looking at.” If Anderson is able to realize those cuts, it would bring the unassigned fund balance for the next budget cycle to around 3.7 percent.
Hobbs said they had received the tax certificates from Patrick Pilcher’s office and they had increased 13.2 percent over the estimated revenue. The board could not get too excited over the increase, because the Legislature will increase Local Required Effort (LRE) if a county exceeds their expectations in local revenue. The more brought in locally, the less the state supplies for the district.
Smith said “customarily when we get to this point each year. How we spent, how we budgeted, years ago our fund balance was huge and every year it seems to get littler and littler, and now we are to the point it’s significant in the sense that we’re told it can’t be less than three and it’s now less than three. Quite honestly, it’s been dwindling.” Smith continued, “shouldn’t we consider some safety net, where we revisit, because this is kinda late to be discovering this. If we have protocols in place and maybe we do, but history looks like this happens, and happens and happens and now we’re in deep caca.”
Hobbs said, “we were so close to the 3 percent that any kind of unforeseen
expenditure – ” before Smith responded, “but we’ve been having that conversation about we’re right on that teeter/totter line and if anything happens we’re going to be slipping over. But, I guess my question is if this has been historically happening, then we need to do business differently?”
Board Chair Faye Leddon reminded members she had asked Anderson when working on next years budget if there was some place to set aside a type of “rainy day” fund. Anderson responded under new budget rules there was a place to set something aside and “it would be my desire, and it may not be doable this budget cycle, but I would like to see the board have three million set aside, in order to handle these things that always seems to happen at the end of the year to a small degree. This year it was to a little bit of a larger degree.”
Roberts said she wanted to address what had been said, “Mrs. Smith you said a while ago that it’s basically that it happens. No ma’am it doesn’t just happen and you not know that it’s coming. Mrs. Hobbs, every day when you pull up the screen, you can tell where we are in the fund balance. This is not something that slipped up on you overnight. And, you’re just now telling this board this? Once a month we get a financial statement and we’ve been well within our 3 percent. There is no way that these unassigned fund balances, on the last day has jumped up to what I’m being told that it is. Now, it just does not happen that way.”
Hobbs responded, “how do you foresee sub costs?” Roberts replied, “Mrs.
Hobbs, subs are not paid at the end of the year, they are paid all during the year and you see those expenses come in as they are paid out. Now, you may sell the rest of this board that but you will not sell me on that. There is no way you could have foreseen this coming, and inform this board of the state that we’re in and it’s completely unacceptable. We gave you all a balanced budget to follow and it has been exceeded. And in my mind, it’s criminal.”
Anderson responded that if it was criminal it has been so for many, many years and under the former chief financial officer, they had budget amendments at the end of every year. “When you have a budget this large, you will have budget amendments, the difference being in the past we have had a fund balance to cover this,” she added.
Roberts responded, “when that occurred in the past we knew it was occurring. But this, when we learned about it last Friday, you thought you had a .5 but then you found a 1.6 and now today it’s 2.2. Ladies and gentlemen of this board, and the folks sitting here, you’ve heard me six or eight months ago question the superintendent and I told her that I could no longer trust her to make sound decisions for the Walton County School District, and here we are.”
After more discussion, resident Susan Harris questioned Hobbs at great length about her qualifications to hold her position without a
degree in accounting and the budget itself. Harris added, “I’ve never spoken to Sharon Roberts outside of this room, and if I saw her on the street I probably would not recognize her, but I think what she said, I think this is criminal to have a $100 million dollar, and not have somebody with an accounting degree doing your budget for you. That is a disaster.”
WCTA President Dr. Don Riley said he was concerned with the “last-minute” frenzy around the fund balance issue and added “there are people in the financial field who are credentialed and experienced in what you are dealing with. This wheel has been invented.”
Pay outs to collegiate high school, an expense the district picked up last year, as well as fluxes in changing school students counts are other issues Anderson cited in budgeting. Roberts responded, “there is no way you have not known this for some time.”
Other issues discussed were the possibility of where future cuts would come from included possibly not replacing staff that are retiring or leaving, and program and service cuts, but none were outlined more than others. Anderson and the Board both responded that cutting teacher positions, non-instructional positions and programs were all something they were not supportive of and would work to keep them from happening. The board is the only body that could reduce the workforce for the district.
Leddon added, “I am unhappy we are here, but as we start the new budget, I think as a board we need to come up with some things to prevent this from happening again.” Roberts responded that the board needed accurate information to predict coming trends in expenses.
“Without accurate information, inaccurate decisions are made,” Roberts
added.
Davis said the board may have to overestimate the amount of student
payouts to keep this from happening in the future.
The board moved 3-1 with Roberts being the nay vote to pass the
budget amendment. They also moved to pass personnel recommendations 4-0.
The first budget workshop for the 2014-2015 year is scheduled for July 7 at 5 p.m., with a tentative budget to be set by July 24. To see more about the district and times for meetings and workshops, go to www.walton.k12.fl.us.
Turns out this was all a big mistake, a couple of journal entries were misplaced and the fund balance was OK. So says the new CFO last night.
Misplaced? Like the money was put somewhere other than where it was supposed to be? On purpose?
All the more reason for a full audit IMO.
All the more reason for a full audit IMO.
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