A major vendor of group home and home health services was providing services to Winnebago County and acting as the County's agent collecting reimbursement from the State of Wisconsin. This vendor continues to provide high quality, compassionate service and strong bonds have developed between caregivers and their clients. However, something went very wrong with the handling of State reimbursements. For a prolonged period of time reimbursements due to Winnebago County were commingled with the vendor's profits. The County is now owed over $700,000 and the vendor is unable to pay. The County Board was given the Hobson's choice of 1) bankrupting the vendor, causing the layoff of 500 of the vendor's employees and disrupting the connection between caregiver and client or 2) extending further credit to the vendor and hope for a turnaround. The Board chose the latter and a new management team at the vendor is making slow progress. The question is why did the debt get so large before the Board was alerted. The County must tighten up its accounting and financial controls.
My experience as a CPA and my education at the University of Michigan Business School and University of Michigan Law School will prove helpful at tightening financial controls.