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Harford Co. Executive accused of misappropriating $7 million, breaking Charter

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Posted at 6:08 PM, May 30, 2023
and last updated 2023-05-31 09:17:01-04

HARFORD COUNTY, Md. — Once the Harford County budget is passed each year, it becomes law and each agency is assigned their share of approved funding.

In accordance with the Harford County Charter and Code, if funds need to be transferred between separate departments, it requires Council approval to amend the original budget that was previously passed into law.

These measures are in place to provide a balance of power between the Executive Branch and the Legislative Branch.

On April 18, Bill 23-12 was introduced to appropriate funds from the General Fund to cover estimated expenses incurred by the Department of Emergency Services during Fiscal Year 2023.

Nearly a month later, on May 16, a Public Hearing was held for the Harford County Treasurer to explain why the fund transfer was needed and what the funds would be used to purchase.

It was discovered on May 2, Treasury processed the transfer of $7,000,000 from the General Fund to the Department of Emergency Services.

The original budgeted amount for EMS was $11,931,598, however $12,085,718 was spent.

Of the $7,000,000 transferred, only $5,571,181 remained.

Councilman Aaron Penman alleged the transfer violated the County Charter because the Council had not yet approved the funding.

Treasurer Robert Sandless said the transfer was added to the supplemental budget without approval to adjust the balance on the year-end report for the Maryland Association of Counties.

Sandless said the $7,000,000 was ultimately transferred back to the General fund.

Here is an excerpt from a memorandum Sandless wrote to the County Council.

“In early May of 2023, the Deputy Director of Treasury added the requested supplemental budget appropriation in the amount of $7 million to the Department of Emergency Services Budget in the County’s financial system to complete some year-end reports. This action was not an attempt to alter the legal appropriation of DES nor was it an attempt to supersede the authority of the County Council.” “This early entry, which was reversed, is the sole responsibility of Treasury. While it was not done with malice or any ill intention, the entry should not have been entered until the supplemental appropriation was approved by the County Council.” “I apologize for this premature budget entry into the financial system.”
Treasurer Sandless

WMAR-2 News also reached out to Harford County Executive Bob Cassilly, who denied Penman's allegations.

It is disappointing that Councilman Penman chose to cast suspicion on a simple, but extremely important, request for additional funding for our Department of Emergency Services. My administration has been working very hard to correct a serious problem concerning the availability of ambulances and crews to respond to our citizens’ emergency needs. This serious problem resulted from the unexpected discontinuation of these services earlier this year by the Harford County Volunteer Fire & EMS Foundation. If this funding request is not approved by the County Council, our citizens should know that we will not have the budget authority to pay our emergency medical service providers, 911 staff, paramedics and other emergency services personnel, and most of these providers will be laid off.  Regarding the transfer request challenged by Mr. Penman, no money was moved. Mr. Penman is reacting to a ledger entry made in anticipation of closing our books for year end. That ledger entry does not award funding. Those funds can only be reallocated and dedicated to DES funding with Council approval. If he had reached out to me or read the opinion of the County Council’s own auditor, he would have avoided disparaging the dedicated professionals in my administration who uphold the highest standards of integrity.