Quincy College official admits school hid extra money in budget

By Associated Press
Thursday, June 23, 2005 - Updated: 04:10 PM EST

QUINCY, Mass. - A Quincy College official has admitted the school routinely hid some of its earnings as part of a budget practice intended to ensure enough cash would be available to cover union-negotiated pay raises, The Patriot Ledger reported.
In a Feb. 3 e-mail to chief financial officer Steve Higgins, the school's vice president of enrollment, Tom DeSantes, wrote, ``We used lines to hide revenue and raises,'' the Ledger reported Thursday.
Asked by the newspaper about the practice, DeSantes said, ``You've got me in a weird position. I can't deny that that's my e-mail.''
Higgins prompted the e-mail exchange after discovering a budget irregularity and asking about it.
``I got the impression they thought it wouldn't be appropriate to identify clearly to third parties, like contract people representing other parties, how much we had reserved,'' Higgins said.
Higgins, who was hired as chief financial officer in September, said he has ended the practice. For the upcoming budget year, money for potential raises will be stored in a reserve fund, he said. Previously, some of the money to pay for raises was funneled into a budget line item for the expense of depreciating assets.
DeSantes said his February e-mail to Higgins was intended merely to advise Higgins on how the college worked. He denied the college was trying to show a leaner budget.
``We were looking to have money in the next cycle to honor whatever raises may have been negotiated, not knowing when that might be finalized,'' he said.

Source: http://news.bostonherald.com/localRegional/view.bg?articleid=91276