Pasco Case Study Answers

Pasco/Chris – Attached for your review and use is a copy of the written responses received from each of the MEs specifically addressing and responding to the budgetary concerns that emerged at biennium close. I believe the meetings held last week with the MEs were helpful and constructive as we walked through the specific series of events related to biennium close; discussed errors that were made in budgeting, billings and expenditures; and candidly discussed the controls and why these controls failed. Most importantly, we came away with specific recommendations to begin implementing immediately to avoid recurrence in the future.

In summarizing the themes associated with each of the areas of requested, I offer the following:
• What specifically caused the over-expenditures (what, where and why)? o Lack of clear communication of budget, regional targets and expenditures to …show more content…
As such, individual Areas were expending to an assumed zero balance without knowledge or understanding of program or regional budget targets. o Billings and the status of payment was hampered by the gap between individual Area Offices, the Region and HQ Accounting. In other words, bills were not processed promptly at the region level and the status of the actual payment in many cases did not include follow through. Much of the failure of these controls were the result of staffing issues of individuals at the Area Office who handled this specific billing function. o As a program, we institute a Glide Path process during the last six months of the biennium. This process includes a monthly conference call and report generated and populated by HQ and the Regions. Glide Path targets in many cases did not get clearly conveyed to individuals at the Maintenance Area responsible for budget and delivery.
• What steps will you be taking to avoid