Monday, February 2, 2009

THE DISCOURSE ON PLAINFIELD FINANCES PART 3

February 2nd, 2009 , the 8th month of FY 2009 and Plainfield has recently passed two resolutions; (1) to operate under temporary appropriations for March and April, and (2) to send out estimated tax bills for the quarter starting Feb 1, 2009.

It would be redundant to again mention the 1.6 million error in the proposed budget belatedly introduced last fall, or the spin on how the so called mandated surplus from the previous years could be used to cover the loss of State funding resulting from the error.

The question remains, why no budget? The excuse that the fiscal year budget can not be finalized until the state extraordinary municipal funds are allocated is not valid. Even more tenuous is the excuse that this usual allocation made in December has been postponed until March 2009, which would be the 8th month of the fiscal year or 2/3 rd of operating on temporary emergency appropriations.

As I have maintained, the budget must be the result of reasonable estimates from experience of anticipated income to produce the needed expenditures. Any budget can be legally amended if extra income is available or contrarily if there is a shortfall. The lack of using this modality would suggest that finances are in such bad shape that Administration is waiting for the state to institute a mandated budget; pass the blame for excessive tax increases or service cuts to a third party.

What is the root of the problem? Could it be due to the revolving door of responsible department heads. Lack of continuity with its accompanying accountability can only result in chaos.

From Jan, 2006 to date there has been two City Administrators. Mark Dashield has served for the past 24 months which has given continuity to that top job. However during that period he has also been acting director for " Administration & Finances, Health and Social Services"for two stints. Including the present one from Dec 2008, he served approximately 6 months in a double roll from November 2007 to April 2008.

That critical position as director of " Administration & Finances, Health and Social Services" has been held by 6 individuals including Dashield since January 2006 or 2 a year. That does not consist of continuity especially since several have been named temporary with or without Council approval.

The CFO post has not been filled since Dec. 2007. Instead there have been only temporary or part time people in that slot. Since at present the individual works only one day a week, administration apparently feels that there is little need for a CFO. I believe that in the past the CFO was responsible for approving all purchases and vendor's bills. Apparently recently this has been the province of each separate division or department. This amounts to no controls but not necessarily potential abuse.

The accounting firm which has been in place for too many years, familiarity brings sloppiness, has failed in insist that recommended procedural reforms be carried out. In addition they had to share part of the responsibility for the typo that has impacted on this year's difficulties.

The late Phyllis Mason once located dozens of city bank accounts some which where of dubious origins. In those days when the responsible positions were filled, there was still unanswered questions about the use of these accounts and the subrosa transfer of funds between them. Today there may not be any accountability.

The unalterable fact remains that responsibility for Plainfield's financial problems belongs in the Mayor's office. The lack of personnel continuity, improper vetting appointees, lack of cohesive fiscal policies falls directly upon the head of the "state".

No spin can obscure that failure. Only a complete revision of financial operations by this and/or the next administration with Council involvement will abrogate for the future a repetition of the present situation.

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