Commissioners press staff after transfers coded to Ocean Pines cover negative escrow balances; treasurer reconciling accounts

Commissioners pressed county staff Sept. 16 over a series of transactions that used funds coded to the Ocean Pines water/wastewater service area to correct negative balances in other shared-facilities escrow accounts.

Commissioner Bertino asked why money had been moved from Ocean Pines to “rectify negative balances in other service areas” and said ratepayers in Ocean Pines appeared to be footing the bill for prior oversights. Staff and the treasurer’s office said they are reviewing the transactions and trying to reconcile developer accounts to determine which balances are collectible.

Quinn, identified in the meeting as the county’s enterprise-fund controller, explained that the transfers were “coded to Ocean Pines” because many shared-facilities transactions had historically been processed under that account, and that coding made Ocean Pines the ledger account on which the transfers appeared. Quinn said the county has since received a $46,000 payment from River Run to cover that project’s negative escrow balance.

Commissioners asked why the issue was not flagged earlier; staff said the transactions span prior administrations and multiple past employees. The treasurer’s office is compiling a reconciliation and will provide an update at the next meeting, staff said.

Why it matters: Commissioners noted the transfers could affect Ocean Pines’ enterprise fund if not reconciled and asked staff for a timetable for returning any improperly moved cash. Staff said the transfers are being examined and that the county will attempt to collect outstanding amounts from developers where possible; for defunct developers the county may write off balances.

Next steps: Staff committed to providing a reconciliation update at an upcoming commission meeting and to continuing collection efforts and accounting adjustments as the treasurer’s office completes its review.