Accounting 101

Anyone who reads the local papers has learned of some pretty sloppy accounting practices in place at some seemingly reputable places. In recent memory, we’ve seen stolen or mismanaged money at every corporate or government level. I’m always amazed when Babs the Bookkeeper can steal hundreds of thousands from a car dealer or doctor’s office with little oversight. I am more amazed, though, when money is stolen, misspent, or cannot be found at the larger institutions: see USF, FAMU, or Tampa City government. Even the venerable Tampa Tribune is now missing a cool $1 million.

Of course, the latest Mother of All Monkey Business keeps unfolding at the Hillsborough Supervisor of Elections Office. Every day, a new million dollar figure is bought forth for review and audit. And every day, more nails get pounded into Buddy Johnson’s coffin.

And, each day, I have to ask: How in the hell does he OVERSPEND $3 MIL without some oversight, some red-flag popping up, someone from the Hillsborough BOCC saying, “Uh, Buddy ole buddy, no can do. Mmmm Nmmm, Nanoo, Nanoo! What the hey Bud--day!!!

As most of you know, I’ve worked for the Hillsborough School District for the past 10years within the Department of Adult Education managing about $20 million in educational grants. This school year, I oversee a $2.3 million budget. Within that budget are line items for expenses; things like books, educational software, vocational tuition expenses, advertising, office expenses, etc. Each line item in the grant budget is imported into the district’s financial/business system. This budget cannot be co-mingled with general district funds; it is simply managed by the district’s enterprise software.

When I want to buy books, for example, I make out a list from a vendor and submit that list to the Adult Ed bookkeeper. She in turn creates a Purchase Order request if sufficient money is available in that particular line-item. That “Request” is then forwarded to my director for approval. She reviews the appropriateness of the purchase as well as verifies that money is available. Once approved, that “PO Request” is sent downtown where a purchasing department clerk receives it and again verifies that money is available and that the vendor is “approved” by the district. Only then is a purchase order number assigned.

Whew!!! Are you still with me?? Did you see me repeat “If money is available?” Within the school district, many eyes must see and approve any purchase and even clerks can derail any inappropriate purchase. No way I can ever over-spend any budget by a penny.

These tight controls are a sign of great internal business management. Big time congrats to Superintendent Elia and even bigger kudos to Chief Business Officer Gretchen Saunders.

Maybe the Hillsborough BOCC or new Elections Supervisor Phyllis Busansky should take note. Let’s be honest, Buddy had less oversight than two hookers at a ACLU convention.

posted by admin @ 5:42 PM