De Facto, this phrase is used to characterize an officer, a government, a past action, or a state of affairs which must be accepted for all practical purposes, but is illegal or illegitimate.
The 2024 city budget, adopted in June of 2023, has the following message from Stu McRae, the City Administrator, “… This years revenues are different from previous years, making the budget appear abnormally larger than before. We didn’t suddenly get a windfall of money. This is a change from past years practices where the budget did not account for rollover money … grants which haven’t been awarded, unallocated capital facilities tax … it allows for a $5M placeholder for grants that may become available.”
The writer of this letter, feels a “$5M placeholder”, is as realistic, as a placeholder at a anarchist meeting.
In further addressing the 2023 budget, it allows that administration may, “… amend an appropriation within a department without the approval of the governing body”. This is to allow for the administration to transfer unencumbered or unexpended funds, “from one fund, dept, or account to another.” Further, “the intent of the action is to reduce the need for multiple revisions …” The audit of the city for 2023 states, “the general, water and solid waste funds trial balances provided for fiscal year, ended June 30, 2023 audit were out of balance by $2,751,968, $28,747 and $27,253 respectively”. The out of balanced $2.8M. was determined by Porter, Muirhead, Cornia & Howard (PMCH) was due to the migration of data between old and new software. Further PMCH states, “the City of Sheridan management, in the course of their assigned duties, lack the specific skills and experience necessary to fully prepare external financial statements and related footnotes in accordance with … GAAP” status, “this finding has been repeated”.
The Mayor and Council have accepted that Mr. McRae, can move money from one dept to another, without a budget revision address. This is because of, City of Sheridan Resolution 55-19, which created a "Audit Committee". In February of 2023, Mr. McRae asked the City of Sheridan’s Treasurer to resign. He replaced her with a new treasurer and budget dept. The city’s audit has stated, the new Treasurer (Financial Dept) will hopefully be up to the job by “June 20, 2027”.
Mr. McRae has, De Facto, made himself the budget king for the city, moving funds, from one dept to another. He has replaced the competent with the incompetent. Why?
In a letter, dated Dec 11th 2024, to City of Sheridan - Attn: Richard Bridger, PMCH's, Cindy Kretzer, states, "I wanted to clarify that we did not recommend the creation of an Audit Committee during our audit. While the City of Sheridan’s Resolution #55-19 references a recommendation for such a committee, this was not part of our audit findings or recommendations."
The present Audit Committee, comprised of the Mayor and two council members, is an empty suit. Who is on the committee? When have they met? What have they audited since 2019? In Aug of 2025, City Resolution 24-25, was discussed in a study session. This resolution would revoke the, [standing] Audit Committee. However, "the audit oversight ... shall continue to be fulfilled by the City Administrator and Treasurer ... a temporary committee is deemed more appropriate ... with temporary committees formed as needed."
The real question is should the person managing the money, be the one auditing the money?
To join in on the dialog, contact sheridanclash@gmail.com.