Sunday May 21 2010
The Express News updated this April story about the City Manager of Windcrest. Cutting to the chase, the City Manager has funneled money donated by Rackspace to his brother, a 'developer' with all sorts of business related problems. I could not link to the article in today's Express News, a recurring problem. But over $2 M was transferred to the General Fund, this should never have happened, the money was intended for specific improvements and should accordingly have been in such a fund.
My point here is to highlight the importance of internal audit. This function is designed to uncover such irregularities. If you are ever on a City Council, as an accountant you should ask the tough questions about how such funds are handled. You should demand transparency and specific encumbrances for such funds. Imagine how embarrassing it would be, if you were on the City of Windcrest City Council and it was discovered that the City Manager had misused millions of dollars. I see that some of the incumbents were defeated in the recent Windcrest election. The incumbents claim to have a two year plan to fix things, I guess the voters had a different time table in mind....
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