Absence of Auditors Frustrates Council Members

Council members expecting to receive a report on the audit of Board of Education finances expressed frustration Wednesday when the audit company, Blum Shapiro, who were invited to the Finance and Governance Committee meeting failed to show.

F&G chair Ron Klattenburg said that the company was told not to attend the meeting by the mayor's office.

"They had nothing to show," said city Finance Director Carl Erlacher, explaining that the auditors had been shut out of Board of Education offices when they arrived to conduct an audit.  A memo sent by the auditors also stated that the State Board of Education refused to back the auditors request to force Middletown's BOE to admit them.

"It's obvious we're all frustrated about the situation," said Council member and F&G Committee member Gerry Daley.  "People have to sit down and put their egos aside."

Daley also expressed anger at the firing of 8 part time Board of Education employees by the city.

"That eight good people are not working is shameful," he said.  "We have to be ashamed that they're out of work.  And it's embarrassing to the city.  They have to put their egos in the closet and resolve this."

The City and the BOE are scheduled to meet Friday for ongoing negotiations about personnel policy.

F&G Committee members expressed concern that the audit, which is now scheduled to begin on July 9, will address accusations of financial improprieties which have been brought to Common Council members.

"It's a standard audit," Erlacher said.  "But they have the complaints, and if something pops up they will call in the fraud unit."

In other matters, the Committee accepted proposals from the new Parking Department to adjust street parking and lot parking prices to make lot parking more attractive, and to install an automated gatekeeper at the city lot on Melilli Plaza.  These proposals will be presented to the full counsel on Monday night for a vote.

The Committee also pushed forward a request by the Public Works department for an adjustment in the Bulky Waste Budget which will allow for purchase of new equipment in the Sanitation Department despite a protest by Common Council member David Bauer.  Bauer, who is not a member of the F&G Committee, but is a member of the Public Works Commission said that these requets had not been brought in front of the Public Works Commission for approval, and so should not be considered by the Common Council.  The Public Works Commission has not held a meeting for the past two months because of member absences.

The F&G Committee ignored Bauer's objections and moved the request forward to the Common Council for a vote Monday.