Newark finances under scrutiny
By Donna Comella

The recent report issued on Newark's fiscal affairs includes several recommendations to "protect resources from possible loss or improper use." In particular, the NYS Comptroller's 20-page finding points to the Community Center project, payments to the Fire Council, bid specifications, and overall financial management.

• State officials devoted eight pages to the Community Center project, citing failure to properly approve change orders and failures to bid.

The report states that the AECC project cost in excess of $950,000, although voters had originally approved a bond resolution of only $475,000. According to law, the Village Board could not spend more than the estimated maximum in the bond resolution.

Change orders were hefty. For instance, the bid for roof repairs was awarded for $178,900, but by the time the work was complete, payments to the contractor were for almost $600,000. The original contract for drywall was for just over $23,000. Change orders added another $57,125.

The Comptroller's office found that the Board of Trustees approved at least 12 change orders without specifying a dollar amount, and that ten others were never even presented to the board.

Also, the report states that even though the village expected to defray costs through a $100,000 fundraising drive by the AECC, that money was not "transmitted to the village." Instead, the money was spent on the project directly - a sprinkler system, gym floor, carpentry, electrical - all totaling over $200,000.

• Some deficiencies in overall management included check registers without a running check balance, failure to file monthly and annual financial reports, and no evidence that the Board of Trustees was auditing village officers who receive/disburse funds (nor did any of the financial officers provide any accounting to the Board).

While the village's affairs were under the scrutiny of the state office, Clerk-Treasurer Ernie Mori resigned his post. The Comptroller's report points out that when Mori stepped down in March 1997, the village "began to take action to correct deficiencies," and that by April, officials could see progress.

• Finally, the state cites a failure to bid for a $72,000 fire alarm system;
• and an $8,000 contribution to the Fire Council - the spending of which was not monitored or audited by the Village Board.

The full report will be published in Friday's print edition of the Courier-Gazette.

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