Schuylkill County Controller Christy Joy wants to return some financial responsibilities for Rest Haven back to the county after finding various accounting errors since Service Access and Management Inc. took over in 2012.
Joy made another request Wednesday at the commissioners' public meeting after making similar requests in November and January. The latest request came after receiving the most recent batch of check payments on Feb. 19.
"While the people in Rest Haven's business office have been both courteous and helpful, I had to reject these check batches because of preventable errors," Joy said.
The county contracted Service Access and Management Inc., Pottsville, in July 2012 for management responsibilities at Rest Haven. Since the agency has been allowed to print its own checks, Joy said his office has repeatedly found issues in general accounting.
"Moving check processing to Rest Haven was a noble experiment," Joy said. "If we move back to the county system, we will eliminate duplicate processes, increase efficiencies and strengthen internal controls."
Joy said the county system has safeguards that would have prevented the mathematical and posting errors. The improved communication among Rest Haven and the treasury, finance and controller offices would have also made it easier to determine the amount of cash available at the facility and prevent overdrawn checks, Joy said.
"If the commissioners continue to have Rest Haven, this should be changed," Joy said.
The commissioners allocated $1 million from the general fund to Rest Haven between December 2012 and January. Rest Haven is also paying off $557,927.73 it owes the Schuylkill County general fund in indirect costs and its second-half annual required contribution, also known as an ARC payment, to the county pension plan.
Joy also requested the county administration update its purchasing policies. Joy said not only Rest Haven, but several county departments have made purchases before receiving permission from the county commissioners or its designees, as outlined in the 2001 policy. This practice resulted in Rest Haven attempting to pay 2013 expenditures out of the 2014 budget.
"Technically, it is not illegal. Just bad business practice," Joy said.
Joy said county administration agreed to update the policy in July 2012, but he has yet to receive a rough draft.
"We are working diligently with the controller's office," county Administrator Mark Scarbinsky said.
Scarbinsky said he soon will present an updated purchasing policy that will now include the county credit card program, which started after the 2001 guidelines were put in place. Scarbinsky said the policies at other counties were used as samples.
"Things are different in different counties and you just have to make them applicable to what those needs are here," Scarbinsky said.
As for SAM, Scarbinsky the county contract gave the agency financial responsibly of the nursing home.
"We felt that would be prudent and fiscally responsible at that time," he said. "We are now 18 to 20 months into that contract with SAM, and we feel they are doing a professional job. Every now and then you hit a glitch, and we are working to resolve that glitch. They know what they are doing. They do a fine job."
Commissioners Chairman Frank J. Staudenmeier said the board is well aware of the problems at Rest Haven and the county administration and finance departments are working to resolve them with the nursing home.
"We want you to continue to have this conversation with the administration and fiance departments," Staudenmeier said to Joy.