Published: October 18, 2009 11:33 pm      

On understanding contracts

As this is written, the saga of the Huntsville-Walker County Chamber of Commerce, HOT funds and City of Huntsville remains incomplete and unfinished. As a resident, I hope there will be no rush to judgment.

To answer questions that may linger with readers: In prior years, I have met and talked with members of City Council and the mayor. In addition, I have been a Chamber volunteer (at the statue) for some years. There have been no business relationships and none are contemplated. My silent reputation for attacking sacred cows does not sit well with many in this town. It is not that I am wrong. It is that I address unpleasant facts — facts are true.

With interest, I watched the first open report aired by Channel 7. With my hearing problem, a rather poor sound system, and the auditor’s high pitched voice, I missed words along the way.

At this point, my knowledge of appropriate state law and contracts between the Chamber and the city is somewhere between slim and non-existent. Without a good understanding of all named contractual requirements, it would be foolish for me to address all issues with a broad brush.

`However, messages that became painfully obvious. The main thrust behind the findings was obvious. There were problems with contract administration with the city and the Chamber.

Readers or residents should develop their own idea. Determine what was said — and not mentioned.

Before voicing an opinion, readers are advised to get a copy of the auditor’s report (from City Hall), read it carefully and only then will they know enough to develop unstated inferences.

The theory/practice of commingling funds is something of an auditing/accounting standby. You just do not do that. There are too many chances for error. Without hiding behind accounting terminology concerning contractual requirements, commingling of funds is simply bad practice.

If I have my terminology correct, transactions were not correctly or properly documented. In the simplest of terms, the paper trail was overlooked, lost, or just not available.

Say what you will about paper trails, they are a nuisance. Try filing your annual tax report without adequate documentation to support and report your earnings and deductions. For those trying to be careful, a day-planner or appointment, and other supporting documents becomes invaluable.

I learned long ago that my money was mine to earn, spend, and save. When I made my first trip for an employer, I quickly learned to document each day as it happened and count the dollars to be sure I missed nothing.

Is it a nuisance? Is it a problem? Well, probably. However when you are charged with responsibility for dollars not yours, it is just like your income tax reports.

When you drive a vehicle belonging to someone else, you have something of an implied warranty to behave responsibly on business. Accidents can be caused by others but you may retain some responsibility.

Where money is involved, you are responsible from the beginning. There may be rules established for what is a reasonable expenditure. Even that is subject to the paper trail. Without a paper trail, reasonability cannot be determined.

Where government and public trust is concerned, the tendency is to build safeguards and procedures to minimize or prevent waste, fraud, and abuse. In some instances, controls cost more than the potential loss. But the public must be protected.

I am reasonably certain that provisions to prevent abuse of public money will sometimes cost more than any potential loss. That may be but it sets the tone for the favorite bureaucratic endeavor.

Blind compliance with rules, regulations, and guidelines becomes a mantra heard throughout the organization. Deviation from the norm, good or bad, is not acceptable.

Using that as a springboard, look at those charged with compliance. Of course, ultimate responsibility is much higher up the ladder with agency leadership and management. Workers doing the work must have management support to adequately perform their job.

Leaders and managers set the tone for employees and establish an informal process for conducting business.

Workers have limited authority to review and approve transactions beyond some pre-determined amount. Most often, management reserves the right to approve any amount in excess of established limits.

Trying to observe and fulfill requirements of the law, contracts, and general practices can leads to activity paralysis. For example, if contractual reporting elements are seriously out of compliance with legal guidelines, workers have a problem.

Lack of a paper trail delays serious annual reporting. The question becomes one of overlooking requirements for now or forcing compliance with defined requirements.

The question of overlooking gives rise to a ROUND-TUIT. In other words, we know the report is not quite right but will be fixed when we get a ROUND-TUIT.

If the problem remains ignored and never addressed, the next event will be even easier. Later, the excuse and mantra will be heard that “We have always done it this way before.”

When the problem becomes flagrant and topples, residents need to wonder what went wrong. Or, what caused this to happen.

The City Council, in their infinite wisdom, selected a period of three years for their analysis. I have seen no justification for a decision arbitrarily limiting the examination to such a narrowly defined period.

It appears the problem surfaced/erupted about three years ago. Surely at some point in the intervening years, the city should have noticed and recognized non-compliance with contractual requirements.

These elements have never been openly mentioned or discussed.

Who noticed the problem and when? One, this contract with the Chamber of Commerce contained certain requirements that were the responsibility of the city. These elements have not been openly addressed.

When a problem surfaces and is recognized, it is prudent to examine the whole picture and take steps to correct the problem. Remedying the situation does little if underlying problems are ignored.





Grady Easley can be reached at page65@att.net or 219 Elkins Lake, Huntsville, Texas 77340