WCOG Comments on the 2006 Audit Report

WCOG raise the following issues with the Windham Audit Report and pose these questions for Chairman Larry Brown: Based on the 2006 Audit Report given verbally by Janet Richardson on 3/05/07, we ask for answers to the following issues addressed by that report.  The Auditors' findings and recommendations are quoted in BLUE.

Auditors: "Some paychecks had incorrect amounts.  Larry was over paid $173.40, Bill was over paid $84.00, Brian was under paid $12.00, and Dave was under paid $24.00."

WCOG: Has the paycheck overpayment to Larry Brown ($173.40) and Bill Thetga ($84.00) been rectified?  If not, when will this money be returned to the Township?  Have you paid Brian Beckwith ($12.00) and Dave Brown ($24.00) the money they were owed?  If not, when will this be completed?  This is needed to balance the books based on the audit report and this can’t be done until these overpayments are returned.

Auditors: "Wave Bill's [Thetga] overpayment since he is no longer an employee of the Township."

WCOG: This is a totally inappropriate and irresponsible comment.  The auditors do not have authority to dismiss a misuse of taxpayers' money ($84).  The responsible party is libel for the loss.   The Supervisors should reject the Auditors recommendations and recover the "overpayment" funds.

Auditors: "Invoices were not stamped when paid to prevent reuse."

WCOG: Here is another example of incompetence and lack of attention to detail on the part of the Secretary/Treasurer which would logically lead to "over payment" of health insurance premiums for a former Township employee. 

Auditors: "The health insurance premium was over paid by $3256.74."

WCOG: What measures have you taken to return the $3,256 overpayment to the Township funds?  It appears that you failed to stop the payment of insurance premium money for a person (Bill Thetga) that was not an employee during that time.  This is taxpayers money that belongs to the people of this Township.  Section 907 link and Section 707 link of the Township Code states the "appointed official is responsible for the amount of the loss due to that officers act or omission."

Auditors: "We received legal consultation on the matter of surcharging and found that if there is no evidence of "purposeful intent" then surcharging is not necessary.  Since the overpayment [$3256.74] of Bill's [Thetga] health insurance meets that criterion, no surcharging is necessary at this time.  However, the Supervisors need to exercise due diligence when paying bills."

WCOG: PL-350 Treasurer Duties - Section 707. "Penalty for Failure to Perform Duties.-A township treasurer or assistant treasurer who fails to perform any duties of the office other than those for which specific penalties are provided commits a summary offense and, in addition to the fine or penalty which may be imposed upon conviction, is required to pay to the township an amount equal to the amount of the financial loss that occurred, if any, for not performing the duties of the office. That person is disqualified from holding the office of township treasurer or assistant treasurer." The Treasurer has clearly failed to perform her duties and should repay Windham Township $3256.74, now shown as a loss of public funds.  There is nothing whatsoever in Section 707 which requires any standard for "purposeful intent."  Taxpayers cannot allow such flagrant incompetence as an excuse not to recover public funds.  The Supervisors should reject the Auditors recommendations and recover the "overpayment" funds.

Auditors: "The cost to the Township for Anna Bowen's illegal actions taken in 2006 came to $323.00."

WCOG: Show us how Anna Bowen’s actions were illegal.  Explain what basis you had to authorize and spend $323 of taxpayers money in determining her illegal actions.  If what she did was so illegal, why was she never formally informed or questioned regarding such allegations?  This is another example of wasting our money!

Auditors: "The fuel log was not accurately maintained or reconciled.  468 gallons of diesel fuel was unaccounted for."

WCOG: That’s a lot of fuel and a lot of tax dollars.  Where did it all go?  Was this theft?  Was the loss reported to the police?   What is your plan to control and account for this item? 

Auditors: "The budget was not prepared properly."

WCOG: What have you done as of this date to properly prepare the 2007 budget?  This needs to be redone to a level that will allow the Township to work within the budget and not overspend when there isn’t money to spend.  You might recall that when you went to pass the current budget an addition was added requesting that you continue to work on the budget to reduce costs to the Taxpayer.  How much of that have you done since then?

Auditors: "Do not lend out Township property to the public.  Township property is purchased for Township use only."

WCOG: Under what authority would Township equipment, materials, or manpower legitimately be used for private use?  This is misuse use of public funds; violates every aspect of common sense and the stewardship of public money.  Of course, there's also the issue of inheriting potential public liability for allowing this to happen.

Auditors: "$31,000 of the $51,649.38 deficit of revenues over expenses in the General Fund has already been recuperated in 2007 through FEMA.  The majority of the balance is expected to be recuperated later this year."

WCOG: This is adequate evidence that Windham Township has been misusing FEMA funds contrary to the purpose for which these funds were granted.

Auditors: "We investigated the matter of ownership of the new pumper tanker as well as the grant awarded toward the purchase of the pumper tanker.  The grant administrator availed the necessary grant documents to determine that the grant was applied for by the Fire Department, not the Township.  The grant was awarded to the Fire Department, not the Township.  The amount of the grant was $170,000 plus $50 administration fee for a total of $170,050.  The cost of the new pumper tanker was $186,000.  Additionally, $945 worth of hose was purchased with the new truck for a total of $186,945.  A down payment was made in 2005 for $65,136 which was paid from the grant.  The WCFD Auxiliary availed their documentation to prove that they paid an additional $16,000 toward the down payment which qualified them for an $895.00 pre-pay discount, bringing the balance due at that time to $104,914, which was the exact amount of the balance of the grant allocation.  The $104,914 balance was paid out in 2006, when the truck was officially purchased.  The truck has been titled in the WCFD's name, as required by the State of Pennsylvania and the grant."

WCOG: We'd like to see - for ourselves - exactly what Pennsylvania law and exactly where in the grant paperwork are stated any requirements for the fire truck to be titled to Dept 28.  Further, during the grant development through approval, the truck purchase and delivery, Dept 28 a formal Department of Windham Township.  All paperwork associated with this truck, including the overwhelming portion of the funds [e.g., FEMA], is public in nature and should be returned to Township administrative files.

We stand by our position previously published on this audit link.