Kortze Comments Were ‘Inflammatory And Inaccurate’

To the Editor:

It was with frustration that I read the June 17, 2005 article, “School Money Management Criticized.” As a Board of Education employee and the accounting supervisor, I took offense at the misleading tone of the article and the inflammatory and inaccurate statements of Finance Board Chairman John Kortze.

In the aforementioned article, Mr Kortze forms a number of angry opinions about concepts he admits he does not understand, such as the basic accounting practice known as encumbering funds. Mr Kortze is quoted in the article as complaining that he does not understand the concept and it confuses him. While I am not myself an educator, I believe I can explain this basic accounting practice to the finance board chairman. When funds are encumbered, they are actually reserved for an expected expense. The amount of any encumbrance is based on the information available about the expected cost; however, there is some fluctuation in the dollar amount of encumbrances such as when actual costs vary from anticipated costs. This practice is no more complicated to understand than an individual setting aside money in their checking account for their grocery list, knowing approximately but not precisely the amount of the anticipated cost.

In the aforementioned article, Mr Kortze referred to the accounting system in use by the Board of Education as an overly complicated “hybrid system” of bookkeeping developed by the school finance director. The accounting system used by the Board of Education is not a “hybrid” but rather a software system that is commonly used by many school systems and has been in place since 1997.

In the aforementioned article, Mr Kortze states that the director of business is the only person to know the Board of Educations finances on a day-to-day basis. Mr Kortze also speculates that the Board of Education makes budget cuts because it does not know the financial situation at “any given moment.” In actual fact, there is an accountant besides myself and several other members that compose the financial support staff, for this $53 million-plus business. The accountant and I monitor encumbrances on a daily basis and have the ability to run daily updated reports as necessary. The Board of Education reviews monthly reports that are available to the Board of Finance as well as to the taxpayers. Reporting on financial issues monthly is a commonly accepted accounting practice; to provide reports on a daily or hourly basis would be a ludicrous waste of the taxpayer’s resources.

In the aforementioned article, Mr Kortze states that an overly complicated budget and encumbrance system coupled with not having timely financial information result in freezes on budgets and program cuts and he melodramatically decries the situation a “Complete Travesty.”

Mr Kortze is then quoted in the aforementioned article as saying, “People vote for and entrust these public officials and they don’t even know what time it is.” If this comment is directed at the hard working professionals in the Board of Education then the remark is meanspirited and ill fitting. If, however, the remark was another admission of confusion from the finance board chairman then the comment would appear to be fairly made.

Darlene S. McKirdy

2 Loveland Drive, Sandy Hook                                      June 20, 2005