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Committee approves $53,788 supplemental appropriation after audit finds improper use of Public Arts Trust funds
Summary
The joint committee unanimously recommended a $53,788 supplemental appropriation to cover outstanding invoices for the county cultural plan after auditors found some costs were covered from Public Arts Trust deferred revenue; the Arts and Humanities Council wired $527,000 back to the county and officials said additional reconciliation may prompt another request.
A Montgomery County joint committee unanimously recommended a $53,788 supplemental appropriation to the Department of Recreation and the Arts and Humanities Council to cover remaining obligations for work on the county cultural plan.
Committee staff said the appropriation (supplemental request 26-59 to the FY26 operating budget) is limited in scope and would address outstanding invoices to the cultural-plan consultant. The funds would come from the county general fund and designated reserves.
County officials told the committee an audit found that some cultural-plan costs were paid using deferred revenue from the Public Arts Trust. County staff and the Arts and Humanities Council have worked to reconcile the accounts: "The entire amount of the $527,000 in deferred revenue has been wired back to the county per the recommendation of the auditor," a county director said. Officials said an independent review of receipts is ongoing and that a second supplemental appropriation may be necessary once reconciliation is complete.
The department described capacity shortfalls for contract monitoring that contributed to the problem and said it is strengthening controls. A department representative said there are roughly 588 contracts under oversight with a small monitoring staff and that new procedures and audit collaboration are underway to prevent similar issues.
Committee members praised the collaboration between county staff and the AHC leadership while urging a separate review of the Public Arts Trust statute and public art guidelines to ensure permitted uses are clear. The committee voted unanimously to recommend the appropriation to the full council and thanked staff and AHC leadership for their cooperation.
What’s next: The committee’s recommendation forwards the appropriation to the full County Council. Staff and the executive branch said they will return with any further supplemental requests after the independent reconciliation and audit work is complete.
