What's New
City's
Finances Still Need Tightening
Springfield Republican Editorial
July 11, 2008
Gov.
Deval L. Patrick's bill calling for systemic changes in Springfield's
municipal government - particularly in the way the city handles its
finances - received some added impetus from the state auditor.
State
Auditor Joseph A. DeNucci, responding to a request from Mayor Domenic J.
Sarno, recommends further improvements in the city's cash management
procedures in the aftermath of a failed investment of municipal funds with
Merrill Lynch last year. The investment lost millions of dollars before
being reimbursed by the firm.
The
auditor's report focuses on cash management procedures and policies - not
on the Merrill Lynch investment, because it remains under investigation by
other state agencies.
In
a 13-page report, DeNucci's office said the state-appointed Springfield
Finance Control Board has accomplished much to put the city on a stronger
fiscal footing, adding that there is still work to be done to improve the
city's investment procedures.
Prior
to the takeover and tenure of the control board, the report said the city
had "inadequate, fragmented, piecemeal written procedures or informal
policies and procedures in place for its overall cash management and
investment functions."
To
continue financial reforms made under the control board's watch, the
report said the city "should implement specific departmental policies
and procedures that clearly define and outline the roles and
responsibilities of employees who handle cash and investments."
We
couldn't agree more. We believe the auditor's recommendations are
reflected in Patrick's proposal to create several new municipal positions
including a chief administrative and financial officer for the city, a
comptroller and director of internal audit. We strongly urge the creation
of these positions.
It
is imperative that the city update its cash management and investment
policies and procedures in order to avoid slipping back to the practices
that nearly brought the city to bankruptcy.