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Passing the buck — 9 million times
OK. We have to ask. How do you not notice $9 million go missing?
We are, of course, referring to the recent “discovery” that $9 million in Columbia County Department of Social Services receivables will go uncollected. This was discovered by an external audit by the county’s accounting firm, Pattison, Koskey, Howe and Bucci, CPAs, P.C.
Programs provided to county residents by DSS are mostly jointly funded by state and federal agencies. The county pays up front for the programs and then asks the appropriate agency for reimbursement. The expected reimbursement numbers are recorded in the budget as anticipated funds.
Program reimbursement generally has a cap, usually 25 to 50 percent, but to demonstrate the county’s need for additional funds, DSS submitted for 100 percent reimbursement, and 100 percent reimbursement was recorded in yearly DSS budgets as anticipated funds, though no programs ever received 100 percent reimbursement from any state or federal agencies.
Art Baer, chairman of the Board of Supervisors has said that no one is going to be asking for anyone’s resignation, including DSS Commissioner Paul Mossman or Treasurer Ken Wilber. But yet, the accounting firm has been summarily dismissed.
The practice of budgeting for the uncollectable funds has been going on for a decade. And the blame game seems to be more like hot potato. As head of the department and the person who formulates the budget, Mossman is not being held responsible. As the chief custodian of county funds and government finances, Wilber, the county treasurer, is not to blame.
Just where does the buck stop? Apparently Baer seems to think it stops with the firm who discovered the problem because it should have been uncovered before now. Our reporter has tried many, many times to get in touch with the accounting firm to no avail. Their silence is deafening. Did they really miss this big of a problem year after year? Is it possible that the firm didn’t notice budgeted revenue/receivables not coming in, year after year?
But the same needs to be asked of Mossman and Wilber.
Why did Mossman continue to budget for 100 percent reimbursement year after year when it became obvious that this anticipated revenue was just that — anticipated and never materialize.
Why did Wilber, as treasurer, not notice that these funds never came in?
And why, when the problem was discovered, that the firm responsible is given its walking papers? Do we dare speculate that this is payback to Richard Koskey, the Koskey in Pattison, Koskey, Howe and Bucci for bidding on One City Centre? We’re told that an answer regarding whether or not the county’s bid is coming. The county has received a letter from the brokerage firm but will not disclose its contents.
We just can’t help but feel that someone needs to answer for a $9 million mistake. And we just can’t help but wonder why an accounting firm who discovers a major issue is rewarded with a public flogging while the other key players continue to pass the buck. Right now, there are just too many unanswered questions.
Why does Baer say: “While we accept the fact that the county was implicitly accountable for these receivables, our independent accounting/auditing firm should have identified this previously” and yet no one on the county level is held responsible?
Why does Wilber say: “Some of the departments have complex reimbursement procedures. My office does not audit reimbursement from any department. We receive the requests for reimbursement, send them on, and book the money when it comes in...and that’s the kind of thing we rely on the annual audit to do — to bring those matters to our attention” and not notice the money isn’t coming in?
Why does Mossman and Mitchel Oxenhorn, former DSS commissioner, both say that if they had been advised otherwise, they would have not continued the practice when they, as creators of the department budget were the first line of defense when it comes to finding faulty accounting practices.
And finally, why do representatives of Pattison, Koskey, Howe and Bucci simply say nothing?
Once again, too many questions and not enough answers.
We are, of course, referring to the recent “discovery” that $9 million in Columbia County Department of Social Services receivables will go uncollected. This was discovered by an external audit by the county’s accounting firm, Pattison, Koskey, Howe and Bucci, CPAs, P.C.
Programs provided to county residents by DSS are mostly jointly funded by state and federal agencies. The county pays up front for the programs and then asks the appropriate agency for reimbursement. The expected reimbursement numbers are recorded in the budget as anticipated funds.
Program reimbursement generally has a cap, usually 25 to 50 percent, but to demonstrate the county’s need for additional funds, DSS submitted for 100 percent reimbursement, and 100 percent reimbursement was recorded in yearly DSS budgets as anticipated funds, though no programs ever received 100 percent reimbursement from any state or federal agencies.
Art Baer, chairman of the Board of Supervisors has said that no one is going to be asking for anyone’s resignation, including DSS Commissioner Paul Mossman or Treasurer Ken Wilber. But yet, the accounting firm has been summarily dismissed.
The practice of budgeting for the uncollectable funds has been going on for a decade. And the blame game seems to be more like hot potato. As head of the department and the person who formulates the budget, Mossman is not being held responsible. As the chief custodian of county funds and government finances, Wilber, the county treasurer, is not to blame.
Just where does the buck stop? Apparently Baer seems to think it stops with the firm who discovered the problem because it should have been uncovered before now. Our reporter has tried many, many times to get in touch with the accounting firm to no avail. Their silence is deafening. Did they really miss this big of a problem year after year? Is it possible that the firm didn’t notice budgeted revenue/receivables not coming in, year after year?
But the same needs to be asked of Mossman and Wilber.
Why did Mossman continue to budget for 100 percent reimbursement year after year when it became obvious that this anticipated revenue was just that — anticipated and never materialize.
Why did Wilber, as treasurer, not notice that these funds never came in?
And why, when the problem was discovered, that the firm responsible is given its walking papers? Do we dare speculate that this is payback to Richard Koskey, the Koskey in Pattison, Koskey, Howe and Bucci for bidding on One City Centre? We’re told that an answer regarding whether or not the county’s bid is coming. The county has received a letter from the brokerage firm but will not disclose its contents.
We just can’t help but feel that someone needs to answer for a $9 million mistake. And we just can’t help but wonder why an accounting firm who discovers a major issue is rewarded with a public flogging while the other key players continue to pass the buck. Right now, there are just too many unanswered questions.
Why does Baer say: “While we accept the fact that the county was implicitly accountable for these receivables, our independent accounting/auditing firm should have identified this previously” and yet no one on the county level is held responsible?
Why does Wilber say: “Some of the departments have complex reimbursement procedures. My office does not audit reimbursement from any department. We receive the requests for reimbursement, send them on, and book the money when it comes in...and that’s the kind of thing we rely on the annual audit to do — to bring those matters to our attention” and not notice the money isn’t coming in?
Why does Mossman and Mitchel Oxenhorn, former DSS commissioner, both say that if they had been advised otherwise, they would have not continued the practice when they, as creators of the department budget were the first line of defense when it comes to finding faulty accounting practices.
And finally, why do representatives of Pattison, Koskey, Howe and Bucci simply say nothing?
Once again, too many questions and not enough answers.
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The following are comments from the readers. In no way do they represent the view of registerstar.com.
OV Observer wrote on Oct 29, 2009 7:26 AM:
" Although I can't subscribe to the sympathy the Register Star seems to hold for Pattison, Koskey, Howe and Bucci, I am surprised that the Board of Supervisors chose to throw the firm under the bus in light of the thousands of dollars contributed by Mr. Koskey and the firm to Republican causes over the years. "
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stonepound wrote on Oct 29, 2009 6:16 AM: