According to Deloitte & Touche, the auditing firm contracted by OPA, PSS does not recognize the reduction in its FY 2006 budget.
OPA “is reviewing the validity of the $2 million receivable and will issue a recommendation,” the audit report stated.
The audit report stated that of as of Sept. 30, 2007, the amount from the general fund due to PSS was $620,975. PSS, however, said the amount should be $2,693,942.
The difference of $2 million is being contested by the central government.
PSS said its FY 2006 budget totaled $37 million but it received only $35 million.
It is the audit firm’s recommendation that the Department of Finance establish policies and procedures for the timely reconciliation of balances with PSS and other government units to ensure that difference in balances are properly addressed and adjusted as necessary.
The Legislature earlier asked Finance and PSS to settle the dispute over the $2 million.
In a recent meeting, the Board of Education said the $2 million owed by the central government to PSS should be included in the school system’s budget request for FY 2009.
BOE Vice Chairman Herman T. Guerrero, during the meeting, said the $2 million is owed to the system.
“We need to demand a payment for it because the amount is what they owed PSS (in FY 2006),” he added.
