The Robert Bobb Group, doing pre-forensic audit preparation, has discovered that a cash transfer practice in Petersburg schools, dating back to at least 2006, has not been making cash transfers to the schools during the fiscal year for which they were appropriated.
The budget now under consideration includes $8.4 million to the school system. That’s the minimum required by the state. Acting budget director Nelsie Birch explained, "To make this right, we are required to appropriate an extra $1.9 million in cash so that this fiscal year will be recorded as contributing the $8.4 million as appropriated."
If the schools don’t get the $8.4 million from the city, the state could intercept the money and provide it directly to the school system.
"Uncovering this, at this time, has been critical to us because we have been dealing with this cash challenge that the city has faced for the past few years now," said Birch.
They’ve asked for a working session prior to the next council meeting to review the situation.