$9.1 Million Write Off in Petersburg is an Accounting Exercise | Community Idea Stations

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$9.1 Million Write Off in Petersburg is an Accounting Exercise

There has been considerable discussion on social media about an action taken last week by The Robert Bobb Group in Petersburg regarding a write off described as an accounting exercise.

Acting Finance Director Nelsie Birch explained that they were approached by their external auditors to see if the city could write off $9.1 million in internal non general funds that the city had been carrying for years.

"They had been asking previous city administrations if they could do this because it’s not standard to carry forward for, you know, ten plus years accumulated receivables from other funds. This is not a quick fix. This is not going to make everything better in Petersburg financially. It is also not a budget exercise or cash exercise," said Birch.

What it is, she said, is an effort to right size the books for the new fiscal year.

Birch said, "For the bond community, for the Governor’s office, for the state legislature, for the community to see in its financials how it’s really performing."