Island Transit is dead broke, cutting jobs and routes

[pscot]

Martha Rose, director of Island Transit, said she fired Financial Manager Barbara Savary in May after she disclosed that the agency didn’t have the money to pay $135,000 in bills.

Rose said.... that Savary hadn’t run cash flow analysis for years...the simple, internal report is not only a vital part of the job, but would have alerted the agency to cash flow concerns years ago.

...

The operating budget for this year is $12.2 million.

Rose said Savary was dipping into investments as expenses outpaced revenues for years on end. Rose said she found unpaid bills in Savary’s desk after she was gone.

....

As a result of the shortfall, the transit board approved an $800,000 note — basically a bank loan — to pay bills. On top of that, the board OK’d issuance of a $1.5-million bond to pay the balance of the agency’s matching funds for the new transit facility near Coupeville.

...
people are upset.

http://www.whidbeynewstimes.com/news/268664722.html

[PoliticAverse]

1. Nobody else bothered to ask to see cash flow numbers?

Shouldn't the director have been asking to see them periodically?

[pscot]

2. The state does an annual audit.

but apparently they keep their eyes closed while doing it. Hard to believe Madame Director was as engaged as she should have been. Harder to believe she still has a job.