One of the most disturbing, albeit low dollar, offenses uncovered in the Salisbury audit was the placement of taxpayer funds in uninsured or uncollateralized accounts. At last Thursday's council work session a question was raised by Councilwoman Debbie Campbell regarding this matter.
The response by city finance chief Pam Oland was more disturbing than the offense. Year after year, the audit has clearly stated that it is against the law to deposit city (taxpayer) funds in bank accounts that are either not insured or otherwise protected through collateral. This point has been made to Ms. Oland on multiple occasions by Campbell since Oland assumed her post at the Department of Internal Services.
Last Thursday Ms. Oland pointed out that yes, this did occur again. However, the funds spoken of in this year's audit were different funds than those from last year. In other words, Ms. Oland took care of the problem from the previous audit, but then turned around and did the same thing all over again.
According to Oland, this wasn't really important anyway. It's only $178,000 and the "bank didn't fail". Try that one again!
When a bank fails, it's simply too late. To compound the error, the solution is as simple as picking up a phone. Large banks are geared up to provide additional assurance through non-FDIC insurance above the current limits or to post collateral. Many smaller banks participate in a program called CDARS.
I don't know who the city banks with. Let's assume for a moment that the uninsured funds are with Barrie Tilghman's favorite bank, the Bank of Delmarva. I know that many out there would want to claim some criminal conspiracy. In fact, leaving uninsured taxpayer funds in the Bank of Delmarva would be a pure act of laziness. Oland would merely need to pick up the phone and tell them that they wanted every dollar above the FDIC limit put in short term CDARS.
This issue goes right to the heart of another question asked to both Oland and City Administrator John Pick - Is it important to obey the law? Of course they both responded that it was. They just can't be bothered with doing it in practice.
cross posted at Delmarva Dealings
Technorati Tags: Maryland, Salisbury, politics, Salisbury politics, audit, Barrie Tilghman, Pam Oland, Debbie Campbell
The response by city finance chief Pam Oland was more disturbing than the offense. Year after year, the audit has clearly stated that it is against the law to deposit city (taxpayer) funds in bank accounts that are either not insured or otherwise protected through collateral. This point has been made to Ms. Oland on multiple occasions by Campbell since Oland assumed her post at the Department of Internal Services.
Last Thursday Ms. Oland pointed out that yes, this did occur again. However, the funds spoken of in this year's audit were different funds than those from last year. In other words, Ms. Oland took care of the problem from the previous audit, but then turned around and did the same thing all over again.
According to Oland, this wasn't really important anyway. It's only $178,000 and the "bank didn't fail". Try that one again!
When a bank fails, it's simply too late. To compound the error, the solution is as simple as picking up a phone. Large banks are geared up to provide additional assurance through non-FDIC insurance above the current limits or to post collateral. Many smaller banks participate in a program called CDARS.
I don't know who the city banks with. Let's assume for a moment that the uninsured funds are with Barrie Tilghman's favorite bank, the Bank of Delmarva. I know that many out there would want to claim some criminal conspiracy. In fact, leaving uninsured taxpayer funds in the Bank of Delmarva would be a pure act of laziness. Oland would merely need to pick up the phone and tell them that they wanted every dollar above the FDIC limit put in short term CDARS.
This issue goes right to the heart of another question asked to both Oland and City Administrator John Pick - Is it important to obey the law? Of course they both responded that it was. They just can't be bothered with doing it in practice.
cross posted at Delmarva Dealings
Technorati Tags: Maryland, Salisbury, politics, Salisbury politics, audit, Barrie Tilghman, Pam Oland, Debbie Campbell
Powered by ScribeFire.
16 comments:
The City mainly uses Bank of America for its accounts.
Doesn't matter where they bank, the fact remains Pam Oland ignored the rules of the charter and was well aware of the charter guidelines. The law is the law, even she has to live by it.
How does that saying go? Something about ignorance of the law...
I am so tied of the lack of integrit and honor, Fire all of them.. Every time Debbie Campbell (one of two fine council members) finds an error "they" say it does not matter. Hell Yes, IT MATTERS. Every penny counts. I am on a fixed imcome. I have no way to get more money, much less be reckless with it. Why should the Tilghman administation treat my money with no regard. Oh, just get a 14% increase in taxes, and I(Barry) can be reckless with it. Afterall, it is JUST TAXPAYERS MONEY. It is criminal and most of all for me is it disgusting that the leadership has no respect for themselves, and most of all the people of Salisbury.Fire them all.
The bank did not fail, but Pam Oland did.
Wanda L. Disharoon
I agree, and include the auditors when the firing starts.
Fire her. Immediately.
Two consective years in un pledged accounts should have caused failure of the peer review of that audit firm for issuing a clean opinion this year. Hmmmm what is going on over there?
Do you think we could get Debbie to run for MAYOR...Huh... Huh... Huh
WE deserve someone like her
Yeah, try that ignorance of the law on a judge.
Yes! Debbie Campbell for Mayor so we have someone who knows how to run the city.
And Terry Cohen for President of the Council so we have someone who knows how to run a meeting.
Sure as hell ain't "I really don't know anything about audits but I like to try and fake it" Louise Smith.
In each of the previous 2 years the State has cited Salisbury for having uninsured funds on deposit -- see file page 14 in:
http://www.ola.state.md.us/reports/
Performance/Article19-2007.pdf
Hey, didn't we all learn in high school about the FDIC insurance and that account balances must be split if necessary to ensure that the funds are insured? What the heck has Oland been doing in her position with the City?
So, if I am reading this correctly there was $384,000 as of 6/30/2005 uninsured/uncollateralized and $334,000 as of 6/30/2006 uninsured/uncollateralized. Now this year there is yet another 6 figures uninsured/uncollateralized.
Someone please tell me why these people are still employed?
Fire Pam Oland. She is incapable of handling this position. She is also incredibly smug and arrogant.
Fire John Pick, he's as nervous as a cat and would probably break quickly under interrogation.
John Pick is a likeable guy. He's been with the city since pre-Barrie and most likely just hoping he survives post-Barrie.
He may actually hold the key to a lot of answers.
Post a Comment