Following the recent discovery that funds had been spent without proper authorization from the town's nonrecurring capital projects account, First Selectman Robert Mallozzi wants a "forensic audit" of all the town’s capital projects during the previous four years, with a special focus on the Lakeview Avenue Bridge project.
The Board of Selectmen on Tuesday gave Mallozzi the green light to begin the search for an audit firm after the discovery that an unauthorized payment of about $1.5 million was spent from the capital budget for a cost overrun for the bridge project under the previous administration. Earlier in the year current town CFO Dawn Norton discovered that an appropriation for $400,000 for a chiller at East School also did not get proper approval before disbursement.
During Tuesday's Board of Selectmen meeting, Mallozzi said he fears the audit will turn up additional unauthorized appropriations from the town’s non-recurring capital expenditures account during the previous four years.
“We have to get to the bottom of this,” Mallozzi told his fellow board members during the meeting held in the training room at police headquarters. "I want all of it — I don't want to go through this haphazardly and find out later that we missed something. I think there might be more examples of this out there than less..."
In a telephone interview Tuesday afternoon Mallozzi said although there is no evidence thus far that any town money was misappropriated — it appears all of it was spent on the approved town projects — he wants an independent auditor to conduct a detailed "line-by-line review" of each project budget and an accounting of how "every penny" was spent, for the purpose of transparency as well as improving town procedures.
The alleged unauthorized transfers took place during the tenure of former First Selectman Jeb Walker and Chief Financial Officer Gary Conrad, who reportedly signed-off on the expenditures even though they had not gone through the proper approvals process. The bridge project was completed in 2009.
"The thing we have to look into is... how many times did the former CFO and first selectman bring things forward and then cut checks without reviews?" Mallozzi said, adding that although the town undergoes an annual audit, as all municipalities do, it doesn't take a detailed look at how projects are handled within the capital budget.
"The capital projects need to be looked at separately," he said, adding that at this point the staff in the Finance Department has exhausted all avenues in attempting to track down where the errors occurred.
Mallozzi wants the firm to review all spending from the capital and nonrecurring account from Dec. 1, 2007 through Dec. 1, 2011.
Last month town officials confirmed, via a , that Conrad had overstepped his authority when he granted Walker a pension greater than what he was supposed to receive under the town’s pension plan. Conrad, who now works as finance director for the Town of Westport, has denied any wrongdoing.
The request for an audit of the capital projects account comes as the town is establishing an Audit Committee that would report to either the Board of Selectmen or Town Council.
Mallozzi said all third party auditing entities would report to that committee once it is established via town charter. Currently the Town Council's Ordinance subcommittee is working on the details, including how many seats the new committee will have and whether it will report to the Board of Selectmen or Town Council.
Mallozzi said although the Town Council last year appointed a special subcommittee to investigate the unauthorized spending on the bridge project, it "didn't look at the actual transactions... just the town policies..."
Selectwoman Beth Jones, who sat on the Lake Avenue Bridge subcommittee, which was formed last year to conduct a review of an abitration settlement, said "there are a lot of unanswered questions about where the financials went," as well as questions "about who approved what... and how."
"We saw that there were a lot of mistakes made, a lot of sloppiness," Jones said.
A Sept. 2011 draft report from the Lake Avenue Bridge Subcommittee goes into detail about what occurred, concluding that "over the course of the project, procedures were breeched, errors were made, and unwise choices were too common. However, despite this disappointing record, there is no evidence that personal gain or corruption played any part in the proceedings. Instead, a lack of foresight, a lack of control, and lack of communication ruled the day."
The report outlined numerous recommendations for ensuring proper safeguards and improved communication regarding capital projects, some of which have been implemented, including adoption of GASB and GAAP standards; establishment of proper procedures for use of the capital fund; and improved communications protocols between the Board of Selectmen, Board of Finance, Town Council and executive departments.
Mallozzi said he hopes that by having an independent firm conduct a thorough investigation, proper procedures can be put in place to prevent such matters from occurring again, and the town can learn from its mistakes.
Selectman Nick Williams agreed, saying as long as the audit yields a positive outcome for the town, in terms of improving operations, "I'm for it."
The Board of Finance was scheduled to discuss the Lakeview Avenue Bridge project during its meeting on Tuesday evening. The selection of an audit firm as well as funding for the audit must still be approved by the Board of Finance and Town Council.
Wonder where the conservatives went? Who went over to the dark side? Will this be another Town Council whitewash? Keep it with the Selectmen.
This looks like a job by Financial Man or Funder Woman.
Town Council is a very congenial group and they would be reluctant to criticize one of their own. The terms of Town Council overlap so that if their actions are unsatisfactory, it could take years to clean house. The Board of Selectmen is elected in odd years for a two-year term, so it can be completely overhauled in 2 years. The Town Council review of the Lakeside Bridge project was a genteel whitewash. We shouldn’t expect much different except for those members who were outvoted in the recent pension fund giveaway to Jeb Walker, former First Selectmen and co-concealer of the Lakeside Bridge cost overrun. We need a clean start and clear accountability, so the Board of Selectman seems less obstructionist and, nominally, less committed to pet projects -- outside the expensive Town Hall remodeling, that is.
As far as property owners being responsible for their trees falling and downing power lines: Most of the trees that fell during this storm were marked trees to be removed by the tree warden. Most others were uprooted trees. If it was a dead tree then fine, but most were perfectly healthy trees that fell. The power line poles sit on our properties that we pay taxes on and pay CL&P to have power. Yet 10 feet from the road into our property is town owned. So why should we pay all of this and be charged if one of our trees falls on a wire? Yes we should maintain our trees but how do you determin if a tree can withstand a severe storm? CL&P scews us enough.
10:41 am on Saturday, November 17, 2012 "Most of the trees that fell during the storm were marked trees to be removed by the tree warden." Of the 200+ hurricane-related posts, this might be the most absurd statement made. Congratulations, besting Baffled Resident is quite an accomplishment. While there is an outside chance Ethical Vegan could still sneak in a zinger, I am prepared for Judge Crater to render a final ruling. KEN" Judge Crater? Stop playing with Dr. Ackerman's computer. LOL.
As for May. I think Mary is OK. I like her I think Dave is an alright guy too This storm was awful and I have to admit CLP did best it could. I think management should have delegated them to do US first instead of running around the rest of the state worrying about all that nonsense In closing...I purpose a new Nat' Holiday. How about 'GLEN K DUNBAR NATIONAL APPRECIATION DAY"
Group hug!
This Court is now in session. The Court has been asked to rule on whose post is the most ridiculous. The Court will defer judgment on that matter. Even Solomon would have a problem. Ethical Vegan should be cited for vexing complexiting. In fact, this thread was supposed to be about the search for loose ends in Town Government and the lack of decorum is distracting from that purpose. Attention span seems to be a problem. Bailiff, eject anyone hugging without a permit. Order in the Court, let’s hear from Mr. Dunbar and then attend to the thread at hand.
without everyone whacking Glen like a pinata. Objection overruled with respect to Glen Dunbar National Appreciation Day. The Town has lost too many school days already. Order in the Court. Next post.
Question for you all: Why can't people living in Springdale be buried here in New Canaan?? give up? Because they are still living !! LOL hah ha