December 18, 2020 |
In Saratoga, town finances took center stage again Tuesday. Town council is grappling with years of improper bookkeeping and an outside accountant who says he’ll quit if the town rejects his solution to the mess.
At the center of the impasse are years of unapproved transfers between enterprise accounts and the town’s general fund. The off-the-books borrowing made it appear as though the town was operating in the black. The money transfers were actually unauthorized loans. The money was used in some years to cover up negative general fund balances, a violation of state laws. The loans were not repaid.
Previous councils were never aware of the transfers, and never approved them.
An outside accountant hired last year, James Childress, developed a scheme of charging retroactive fees to the enterprise accounts. Childress calls the fees “overhead allotments” to cover administrative costs incurred by Town Hall for handling the accounts. The fees date back 20 years.
Childress did not provide material evidence — receipts or records, a standard accounting practice — to support the itemized fees he charged. Some members of council object to his plan. Childress informed the town he will not renew his contract if his scheme is rejected.
Council discussed the accountant’s demands, the integrity of his findings as well as the possible consequences of not accepting them. Emma Diercks picks up the story from there.
Pictured above: File photo of Saratoga Town Hall. Photo by Emma Diercks/Bigfoot 99.
Related: Report shows Saratoga’s tangled financial history
Related: Saratoga officials taking steps to increase transparency, accuracy in finances
