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Controversy in B’Spa Continues: Financial Condition Audit Released
BALLSTON SPA — An audit covering the financial condition of the Village of Ballston Spa from June 2014 to May 2018 has been released. Financial condition audits are conducted based on the Office of New York State Comptroller’s (OSC) risk assessment process, which also included a request from a local official. They are used to determine whether the treasurer maintained adequate accounting records and that the Board effectively monitored the village’s financial condition.
On Sept. 6 2018 it was announced that the Village Treasurer, Christopher Hickey, resigned. Final audit reports are public documents. The last audit was conducted in 2012 and covered June 2009 through May 2011.
Key findings in the report note that: 1) The Treasurer did not maintain accurate accounting records and failed to file required annual financial reports for the last four fiscal years. 2) The Board did not adequately monitor the village’s financial condition. 3) The general fund’s unrestricted fund balance decreased from $213,327 as of fiscal year-end 2014 to $30,487 as of fiscal year- end 2018.
According to a spokesman for State Comptroller Thomas P. DiNapoli, upon receiving the audit, village officials have 90 days to respond and develop what is called a “corrective action plan.” This plan will outline how they will address the recommendations contained in the audit. Village of Ballston Spa Mayor John Romano responded in a letter to the OSC on Sept. 24 and said “The village will implement the recommendations contained in the Financial Condition Report of Examination and will submit a Corrective Action Plan within 90 days.”
It is noted that audits are advisory in nature and the OSC cannot force the village to implement corrective measures.
“Many of the issues go hand- in-hand. Without accurately monitoring the village’s finances, the situation has continued to deteriorate. The rapid decrease in fund balance, the money used to offset revenue shortfalls, is notable because if this money were to dry up, the village will need to reduce its expenditures (cut services, layoffs) or increase taxes in order to balance its budget,” the spokesperson said.
“The problem with this budget practice is that the village is using a non-recurring revenue source to pay for recurring expenses. At some point, the fund balance is going to run out,” he added. The OSC recommends that the village should 1) maintain adequate accounting records in a timely manner. 2) Monitor the village’s financial condition and ensure the Treasurer files timely financial reports. 3) Develop a plan to address the general funds declining fund balance and the village’s overall financial condition.
The village’s deputy treasurer, internal control officer, personnel officer, and compliance officer, Darryl Purinton resigned as well, from all of those titles except internal controls officer. “Our office is questioning the value of this position given the audit findings,” the spokesperson said.
“We’re not going to look back we’re just going to look forward and do what we need to do to get things headed in the right direction,” Mayor John Romano said and adds that he plans on addressing village resident’s concerns.
Controversy in B'Spa: Village of Ballston Treasurer Resigns
Photo by Larry Goodwin.
BALLSTON — “Tonight the mayor announced at our special meeting of the Village Board of Trustees that, yesterday, the Village Treasurer resigned effective immediately,” read a Facebook status posted by Village of Ballston Spa Trustee Noah Shaw, on Sept. 6. It was later confirmed in a village board meeting on Sept. 10 by Mayor John Romano.
The Ballston Spa Treasurer was Christopher Hickey, who was also the Budget Officer. He has resigned from both positions. The village’s deputy treasurer, internal control officer, personnel officer, and compliance officer, Darryl Purinton resigned the next day from all of those titles except internal controls officer. It was noted in the board meeting that Purinton's salary for internal controls officer is $68,000.
The status posted by Shaw also says things like “next steps will be essential to resetting the Village’s financial systems and controls, and to bring us back into good order,” and “we will be working to fix the array of issues that have been allowed to fester for far too long in the Village government’s systems, controls and financial accounting.”
According to Shaw, “two prior audits from the office of the state Comptroller have identified issues with respect to the village's financial systems and controls.”
“Since I was elected last year, I have also identified at public meetings and otherwise various items and practices that I believe are deficient,” he added. However, Shaw says that he did not have direct discussion with Hickey concerning reasons why he resigned.
Ballston Spa resident Liz Kormos who says she attends town and village meetings religiously said, “there was never in previous years, when there was budgeting, there was never any real discussion in public about the numbers."
“You know other places I go that periodically talk about the performance, what the issues are, — this village they go through a list of expenditures and approve them. That is the gist before these new trustees got elected, that’s all they did,” Kormos said referring to new trustees, Noah Shaw and Shawn Raymond.
According to Kormos the lack of budgeting information provided to the public has been an issue for some time now. “Now it’s coming to light and we have the opportunity to fix it and make it better,” she added.
In the board meeting that took place on Sept. 10, hiring an interim accounting firm until a new full-time treasurer is found was discussed.
“We have solicited bids from regional accounting firms with municipal expertise to help fulfill the functions of the treasurer while we search for a full-time treasurer. I also hope that firm will make certain recommendations regarding how we can improve our system and controls,” Shaw said.
“I think the mayor and I are aligned with respect to commencing the hiring process for the treasurer ASAP. Where we diverged at the meeting last night (Sept. 10) was with respect to the time frame for convening an informal citizens' advisory group. I would like to get that convened soon; the mayor preferred to delay on the resolution I introduced, however, the board voted to move forward at the next meeting,” Shaw said.
The next meeting will take place on Sept. 24 at 7 p.m. at Village Hall located at 66 Front St.
"We're invested in this community. We want to stay here and we want to make good use of the tax dollars... We've got to get this place on sound financial footing to be able to handle those things,” Kormos added.
