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untanglingwebs
El Supremo
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Genesee County's GCCARD combating nearly $1 million deficit
Print Blake Thorne | bthorne1@mlive.com By Blake Thorne | bthorne1@mlive.com
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on May 07, 2014 at 7:00 PM, updated May 07, 2014 at 7:11 PM
GENESEE COUNTY, MI -- The Genesee County Community Action Resource Department is looking to trim a $1 million deficit from its books.
The department recently submitted a deficit-elimination plan that calls for the deficit to be trimmed over the next five years, said Document Control Director Matthew Purcell, who since January has overseen GCCARD finances.
"The deficit has been lingering since 2006," said Purcell, adding that for the last several years, GCCARD has been using up its fund balance. The agency had shown a deficit of $440,000.
But a change in accounting procedures made the actual size of the deficit apparent when Purcell started his position, he said.
Inventory, for example, was being accounted for in the same column as cash reserves, even though it can't be used to pay bills, Purcell said.
The real cash deficit, according to the state, is $928,728, Purcell said.
"This is really a surprise to me," said Commissioner Brenda Clack.
Purcell said they expect to trim the deficit without affecting core programming.
For example, GCCARD formerly subsidized operations of the former Career Alliance.
GCARD had to kick in "a couple hundred grand" each year to help finance Career Alliance programs. That money now can be used to pay down the deficit.
GCCARD oversees several initiatives aimed at fighting poverty and helping seniors. They facilitate local meal delivery for seniors and run the county's Head Start program.
"Our core programming, like our senior nutrition programming, is going to be unaffected by this," said Purcell.
Blake Thorne is a reporter for MLive-The Flint Journal. Contact him at bthorne1@mlive.com or 810-347-8194. Follow him on Twitter or Facebook. |
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Thu May 08, 2014 5:56 am |
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untanglingwebs
El Supremo
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The surprise of the total deficit ccame after the Controllers office transferred the budget function to GCARD. Purcell, who had been in charg of one division, wasthrust into the role of managing all of the finances in January.
County Controller Francis told the Commission that a deficit reduction plan for $443,000 prepared in 2013 for the state was rejected. The true uassigned deficit was $928,000.
Commissioner Henry asked Francis and Purcell how GCARD got into this problem. The response was the deficit occurred during a reduction of the scope of programs. Purcell indicated the main programming was intact.
Commissioner Clack asked at what point ddid the agency discover the deficit. Purcell was thrust into his current position in January. Prior to that time the financial reporting was done by the Controllers office. Purcell became aware of the issue in March. |
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Thu May 08, 2014 6:09 am |
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untanglingwebs
El Supremo
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Curtis discussed that Genesee Intermediate School District now controlled the Head Start Program previously operated by GCARD. Some fixed costs were unale to be reduced.Curtis noted the basic operations of GCARD were still solid and the cuts made last September and October were finacially sound. Discretionary funding will rduce the deficit, but will not affect programming said Curtis.
Purcell stated he had iplemented safeguards for future transitions in employment. There is now a manual to guide employees in recording financial transactions There is also a person being groomed to replace Purcell, although he hopes to work for many more yers. |
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Thu May 08, 2014 6:18 am |
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