Balancing the County’s Budget Deficitson the Backs of Children
By Ray A. March
June 30, 2009
June 30, 2010
The Warnings Keep Coming
Note the dates, they appear similar and can be overlooked: June 30, 2009 and June 30, 2010.
An example of fiscal Russian roulette being played in Modoc County can be found in two consecutive outside audits of the Children and Families Commission, now under the flag of First 5.
The audits for fiscal years ending in 2009 and 2010 strongly advise the commission that it runs the risk of losing all its Prop 10. Trust Fund deposits with the county treasury.
For two years in a row the outside audit firm made this repeated exact statement:
“The commission maintains its cash in the Modoc County Treasury, which is not insured or collateralized…the total amount of pooled funds invested by all agencies in the Modoc County treasury exceeds the amount of cash available.
“This is a result of a significant deficit balance in Modoc County’s portion of the pooled cash in the county treasury due to negative cash balances in some County of Modoc funds. The county has been able to provide all funds requested by the commission and is in the process of rectifying the situation.
“However, as long as cash is not available for all pooled fund balances in the county treasury, the commission is at risk for not being able to recover its deposits.” (Italics added).
The total amount of Prop. 10 cash in the county treasury in 2009 was $523,444. In 2010 the amount was $491,626, according to the audit report submitted by Haws, Theobald & Allman of Susanville and Chester.
For the last fiscal year 2010-11 the total revenue received was $434,458.91, according to Treasurer Cheryl Knoch.
Next: Part 31
In summation, an analysis