Amherst Advised to Tighten Controls

[eyeswideopen]

The recent article about the lack of good controls is quite interesting. Maybe Mohans medling is finally coming to light. When Grelick was here and had a professional CPA MBA the town seemed o have it's act together. What's happened?

Amherst advised to tighten controls
By Sandra Tan NEWS STAFF REPORTER
Updated: 06/10/08 6:49 AM


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Amherst needs to do a better job of monitoring, controlling and reconciling its finances or the town could lose revenue and face a potential for fraud and monetary mismanagement.

That message got hammered home at Monday’s Town Board work session during a presentation of a draft of an audit for last year.

“If you were, as a board member, to ask for [financial] information on Jan. 1, the numbers would probably be quite different than the audited numbers that you see,” said Thomas P. Malecki, partner in the Drescher and Malecki accounting firm.

The draft financial statements showed the town’s net assets grew to $219 million from $214.6 million at the end of 2006. Sales taxes and interest revenue came in higher than projected last year. In addition, accumulated town savings at the end of last year were healthy, Malecki said.

“The fund balances are improving and considered to be quite stable in the primary funds,” he said.

But Malecki noted several major areas of concern:

• In regard to the handling of cash, the town was delayed — often for months — reconciling its own bank statements.

“That’s a significant deficiency and considered to be a material weakness,” he said.

The town also failed to manually enter some cash receipts and was late in wire transferring money to other organizations.

• The auditors needed to make some “significant adjustments” to correct year-end financial information initially provided by the town.

• The town needs better written policies and procedures on handling records and documenting financial data so that town money is handled appropriately no matter who oversees the budget.

Despite these shortcomings, Drescher and Malecki issued an “unqualified opinion” on the town’s financial reports, meaning that the numbers contained in the statements fairly depict the town’s financial position.

Both Malecki and Town Comptroller Darlene A. Carroll attributed some of the town’s financial defects to turnover in the comptroller’s office.

In January, Carroll had succeed Frank Belliotti, who had served as comptroller for 1z years.

“We’ve really been working to improve our internal controls,” Carroll said, adding, “We can’t fix everything overnight. It’s a $115 million budget.”

Malecki pointed out that the town has not sent out its sewer bills for last year and is losing interest on about $2 million in revenue.

When Council Member Guy Marlette asked why bills had not gone out, Supervisor Satish Mohan said he was deliberately delaying them because he believes the town should receive more money from Erie County and Clarence for sewer services.

The current contract, he said, shortchanges Amherst. While Mohan has no legal basis to demand more money, he said he thinks he has a “fairness and moralistic basis” to seek additional fee reimbursement.

Malecki strongly urged the Town Board to form an audit committee to review finances on a more regular basis and provide a way for whistle-blowers to report potential fraud.

“Your external auditor cannot be your internal auditor,” he said. “You cannot rely on us as your internal control.”

Malecki said a final audit letter should be forthcoming within two weeks.

[amherstfirst]

I think what has happened is that Mohan thought he knew better than everyone else!!!! Now he has a Controller who is in over her head from the sounds of the audit report and is not putting in the time needed to get the work done. She mentions that she can't fix things overnight....well she's been in the office all the time that the controller Beliotti was there. She was the Supervising Accountant so why didn't she supervise instead of using her time to call the Councilmembers and complain about Beliotti?

[Dvoakley]

Wonder why the Bee didn't see fit to comment on the auditor's report or was it something they didn't want the readers to know about?

[Add It Up]

The recent article about the lack of good controls is quite interesting. Maybe Mohans medling is finally coming to light.

Was this the article where Mohan admitted to not sending out the sewer bills to Erie County and Clarence because he, and he alone, thought that the town should be getting more money. Meanwhile they haven't collect a chunk of change.

[sabres07]

Was this the article where Mohan admitted to not sending out the sewer bills to Erie County and Clarence because he, and he alone, thought that the town should be getting more money. Meanwhile they haven't collect a chunk of change.

Didn't you get the memo? Satish is always right! He knows what is good for Amherstonians.....after all, he is the king.

[amherstfirst]

Remember that Schratz crafted the current sewer agreement (And took tons of credit for it) along with other Town officials three years ago. I wonder what she thinks of Mohan saying that it isn't a fair contract for the Town. Many others felt that three years ago but Shelly said it was a GREAT contract. (Never mind she was very "Cozey" with teh Erie COunty Officials involved inb all of this. SO much so that they HANDED Shelly a check owed to the Town for several MILIION dollars. Shelly held onto it for a few days before presenting it at a town board meeting when the papers and the public were all there to witness it. SO her Great Contract is now being called a BAD contract by her budd Satish!!! HA HA HA.

[Liberty]

Will Mohan finally begin to do the work of Town Supervisor or will he continue to create smokescreen diversions by writing trite, uninteresting and simplistic articles in the Bee and the News on the subjects of National Health Care and International Trade Balance and re-industrialization.

Mohan was a disaster from day one when he lied about the reason he refused to keep his campaign promise to work for a dollar a year as supervisor. Now, Mohan has time to write articles (assuming anyone actually believes that Mohan did write those articles) about issues that have nothing to do with the running of the Town, but Mohan doesn't have time to meet with the sinking homes owners or return phone calls!

[govtchecker]

I think what has happened is that Mohan thought he knew better than everyone else!!!!

I agree that he thinks he knows best, but doesn't!

Now he has a Controller who is in over her head from the sounds of the audit report and is not putting in the time needed to get the work done.

How long has the current controller had the position. Definitely not during the time that the audit covers and how do you know how much time is being put in?

She mentions that she can't fix things overnight....well she's been in the office all the time that the controller Beliotti was there. She was the Supervising Accountant so why didn't she supervise instead of using her time to call the Councilmembers and complain about Beliotti?

Things can't be fixed overnight. Regardless of what position was held before, it wasn't the controller position. By the way weren't there multiple supervising accountants. All of that is a moot point if the person at the top can't or won't do their job. For all we know, issues were brought to Beliotti's attention and he chose not to do anything about them which is why he is no longer employed by the town.

Beliotti was the ultimate responsible party in that department and Mohan is the ultimate responsible party for the town. Put the blame where it belongs.

[forreason]

What gives the TS the right to not send contracted sewer tax notices out? His "feeling" that more should be provided by the County and Clarence? In the mean time the town does not have this anticipated (budgeted) revenue plus any interest due each month that it is late. Let's go back to his decision to not negotiate in good faith with the Highway workers that ultimately cost the town $100,000's not only in additional health care costs, but his rush at the end cost more $$$$$. Now his refusal to appoint or fill positions in various key departments as well as holding up the repair or replacement of equipment is also costing taxpayers many more $$$ than if he had listened to expert advise. I sure hope the reporter from the "News" does not try to cover up some recent events that she saw first hand (just a thought). He made many promises and I believe a light went on when he realized there is 1 1/2 yrs left in his term. I hear he has been making some not budgeted and unrealistic time frames for some town employees to come up with solutions or bid documents for work in his voting/support base areas. To tighten controls you have to have some one on the top that acts in a rational manner. The upcoming budget could be a complete disaster because of his "management" skills both in the past and present. Now he is hanging it over the heads of all the Town departments because he would not listen or failed to realize the true cost of providing services.

[Add It Up]

...Now he is hanging it over the heads of all the Town departments because he would not listen or failed to realize the true cost of providing services.

I don't think gutting the general fund balance and cutting contingency accounts is working do you? Another bad calculation on his part. However, he may think he can balance all of this by not completing CIP projects, not replacing old equipment and not replacing necessary employees in currently vacant positions.

His bottom line is the illusion that the town is spending less money for the same services. The bottom will fall out pretty soon, but he is probably thinking it won't happen until after election time next year. By then he can be a savior by selling off the wastewater treatment plant and other "surplus town facilities." The taxpayers lose again.

[amherstfirst]

Beliotti was the ultimate responsible party in that department and Mohan is the ultimate responsible party for the town. Put the blame where it belongs.

I understand that D Carrol did everythingf she could to undermine Beliotti. If she saw things were not right I know for a fact she would go over his head and talk to the Board members or the Supervisor. In fact this was done on several occasions. She looks out for herself and is always the first to take credir for something done right, and first to blame others if it is wrong. . That being said, she was the Ass Director in the Dept as well as a Supervising accountant and certainly knew what needed to be done.

[left wing]

What gives the TS the right to not send contracted sewer tax notices out? His "feeling" that more should be provided by the County and Clarence? In the mean time the town does not have this anticipated (budgeted) revenue plus any interest due each month that it is late. Let's go back to his decision to not negotiate in good faith with the Highway workers that ultimately cost the town $100,000's not only in additional health care costs, but his rush at the end cost more $$$$$. Now his refusal to appoint or fill positions in various key departments as well as holding up the repair or replacement of equipment is also costing taxpayers many more $$$ than if he had listened to expert advise. I sure hope the reporter from the "News" does not try to cover up some recent events that she saw first hand (just a thought). He made many promises and I believe a light went on when he realized there is 1 1/2 yrs left in his term. I hear he has been making some not budgeted and unrealistic time frames for some town employees to come up with solutions or bid documents for work in his voting/support base areas. To tighten controls you have to have some one on the top that acts in a rational manner. The upcoming budget could be a complete disaster because of his "management" skills both in the past and present. Now he is hanging it over the heads of all the Town departments because he would not listen or failed to realize the true cost of providing services.

The upcoming budget WILL be a disaster. And it will NOT be the fault of the department heads. They are well aware of how bad things are. But who'd believe them? And Mohan will try to hang them with it.

[Liberty]

Nobody should be surprised that Mohan is all talk and no substance. We should however all be surprised that the media and many residents still hold on to some hope that Mohan is for real. In the case of the residents, their hope is based in their economic pain. In the case of the media, they seem to be in denial that Mohan fooled them all. The media is startingt to wake up, but it is a very bitter pill for them to swallow.

[govtchecker]

I understand that D Carrol did everythingf she could to undermine Beliotti. If she saw things were not right I know for a fact she would go over his head and talk to the Board members or the Supervisor. In fact this was done on several occasions. She looks out for herself and is always the first to take credir for something done right, and first to blame others if it is wrong. . That being said, she was the Ass Director in the Dept as well as a Supervising accountant and certainly knew what needed to be done.

You seem to apparently know her very well since you seem to have first hand knowledge about her activities are and have been?
It also seems that you might have a grudge against her, which is clouding the discussion since your above response did not address the point that I made, but took shots at her. Which again is the following:

Beliotti was the ultimate responsible party in that department and Mohan is the ultimate responsible party for the town. Put the blame where it belongs.

As for you last sentence:

I may not have as much knowledge about the town that you do, but I know for a fact that Carroll was not the Ass. Director. during this past stop in the department. Regardless of what knowledge and ability she had, according to the civil service title that she worked under, Supervising Acct., she had the same job responsibilities as the other Supervising Acct. in the department.
When a staff is treated the way that Beliotti treated them and ultimately the way that Mohan treats them, why is anyone, going to go out of their way to and above what their job description says is the job duties and help out and cover for people that can't do their jobs.

Human nature says they won't.

[amherstfirst]

From what I saw the only person in the dept that wasn't working well with Belliotti was D Carroll. All the others got along with him and worked well with him...until Carrol got involved.....as usual!!!