Committee approves $25,268.31 appropriation for prior-year bills; discussion flags procurement and encumbrance gaps

The Everett City Ways and Means Committee on Monday approved appropriating $25,268.31 from the general fund balance to cover prior-year invoices, and committee members spent much of the discussion pressing administration staff on procurement, purchase-order controls and year-end encumbrances.

The appropriation covers multiple prior-year bills, the CFO said, with the bulk of charges between the human resources department and the fire department for pre-employment medical examinations administered by a vendor listed as OHS Training and Consulting. Committee members were told the invoices are for fiscal 2024 and represent several invoices across the year.

The chief financial officer, Mr. Dimas, explained the invoices became prior-year bills because there were no purchase orders or encumbrances on file when the fiscal year closed. "Somebody in the fire department sent these people to get tests thinking HR was gonna do it, and that's where the miscommunication was," he said, explaining why HR historically paid for such medical exams but those bills were not encumbered.

Committee members pressed for numbers and controls. The CFO said the prior-year budget for medical exams had been $30,000 and that $7,600 had been expended in the prior year; members were told the current set of prior-year payments totals $25,268.31 on the warrant before the committee. The committee also discussed a broader pattern: a committee member stated that on similar types of prior-year bills the city had spent over $155,000 in the current year and that roughly 94% of that sum was charged to human resources.

On procurement rules, Mr. Dimas reiterated the city's requisition and purchase-order process: "before we spend any money, you submit a requisition, before we incur any charges. And then that will go to the procurement officer, and then she'll review the requisition and then issue the purchase order." He said the administration is reinforcing procurement policy with department heads and that the new budget director has begun regular meetings with departments.

Committee action: a motion for favorable action on appropriating $25,268.31 for prior-year bills carried; the transcript records the vote as "ayes have it." The committee also discussed asking for more regular budget monitoring ahead of next year's budget cycle.

Ending: Members asked the administration and the new budget director to continue regular meetings with department heads to reduce the recurrence of unencumbered prior-year bills and to provide a clearer year-to-date run rate during budget season.