BOARD OF FINANCE

DECEMBER 9, 2014

Page 1 of 8

DRAFT

Attendance:  Chairman John Grabowski, Sharon Huxley, John Ford IV, Robert Brinton Jr., Chip Spear, Sally Huyser, First Selectwoman Gorski

Visitors:  Sandra Welwood, Michael Battista

Chairman Grabowski called the meeting to order at 7:05 p.m.  The meeting was held in the Selectmen’s Conference Room of the Bethany Town Hall. 

CHAIRMAN’S REPORT

Chairman Grabowski gave the Board of Finance members an update on the recent Amity Finance Committee meeting.  The Committee went over the final audit for Amity.  The Amity Finance Committee discussed what could be done with the surplus.  It was determined that each town would receive a refund in proportion to their assessment.  Bethany will receive a refund of $12,559.

  Amity had a sewage problem which caused quite a bid of damage, however the damage will be covered by insurance.

 The first draft of the Amity budget for fiscal year 2015-16 will be available on January 5, 2015 for the first presentation.  The Superintendent would be willing to come to a Board of Finance meeting to discuss details of this budget before the formal presentation.  Following discussion it was determined that they would wait until the regular presentation. 

TOWN AUDIT PRESENTATION FISCAL YEAR 2014-15

Sandra Welwood, auditor for the 2014-15 fiscal year budget gave a presentation to the Board on the final draft of the Town Audit.  Sandra thanked Michael Battista for the year end work given to her and Dan her partner which made the audit go well.  Sandra commented on the healthy fund balance of the Town of Bethany all due to good money management.  She went over the entire report allowing for questions and comments from Board members.   She recommended working on improvement of internal controls for both the Town side of the budget small accounts, and the Board of Education especially the Student Activity Fund.   At the completion of the presentation Chip Spear moved to accept the audit based on the discussion and changes made.  Sharon Huxley seconded the motion.  The vote taken was unanimous.

FIRST SELECTWOMAN GORSKI

First Selectwoman Gorski read into the minutes the Connecticut State Police Investigation Report in response to the complaint to them by the Town Treasurer Lisa Amadeo.  The report is as follows:

Investigating Officer: TRP Shawn R. Sequeira

Date and Time of Investigation:

On 08/19/14 at approximately 0900 hours.

 

Crime:

Suspicious Incident

Incident Location:

The Town of Bethany, Town Hall, 40 Peck Road, Bethany, CT 06524.

Complainant/Witness:

Lisa P. Amadeo, Treasurer for the Town of Bethany, 25 Amadeo Drive, Bethany, CT 06524

Summary:

By letter to Attorney General George Jepsen dated 08/06/14, Town of Bethany Treasurer Lisa P. Amadeo alleged that nearly $200,000 of unauthorized transfers had been made from a Town of Bethany municipal account at Webster Bank over the past several months, and the investigation was subsequently assigned to the Central District Major Crime Squad.  The Town of Bethany resident Trooper Dave Merriam #1227 was notified and assisted with this investigation.  Special Agent Matthew Phillips and Special Agent William Ready of the Federal Bureau of Investigation (FBI), 600 State St., New Haven, CT and Supervisory Inspector Timothy Reardon of G.A. #23, 235 Church St., New Haven, CT were notified as well.

Action Taken:

On or about Thursday, 08/21/14, Sgt Seth Mancini #0284 and Det. Jeffrey Morgan #0945 met directly with, interviewed, and subsequently received a verbal statement from the complainant/witness Lisa P. Amadeo, Treasurer for the Town of Bethany and Bethany Selectman Aileen Magda.  The interview took place at the Connecticut State Police Troop I interview room, located at 631 Amity Rd., Bethany, CT.  During the interview Amadeo reported that she is the Town of Bethany treasurer and was unaware of two transfers from the town bank account to an unknown account.  Amadeo believed that she was the only person that was supposed to have access to the town accounts and she had no information about these transactions. She requested for the state police to look into this matter.  Amadeo submitted an account detail for account XXXXXX identifying the unknown transactions.  Amadeo was requested to provide any further additional documentation as well as a list of town of Bethany’s accounts and authorize users, and then to return to provide additional information.

On 09/02/14 at approximately 1300 hours, Sgt. Seth Mancini, Det. Jeffrey Morgan, and I met directly with, interviewed, and subsequently received another verbal statement from Amadeo.  The interview took place at the Connecticut State Police Troop I interview room, located at 631 Amity Rd., Bethany, CT.  During the interview Amadeo reported that she is the Treasurer for the Town of Bethany and that on 08/06/14 she discovered an approximately $50,000 transfer from the Treasurer’s account to a different and unknown account at Webster Bank on 12/10/13,and another transfer of approximately $115,000 between the same accounts on 06/09/14. She reported that she was not aware of and did not authorize these transactions.  Amadeo reported that she should have access to all accounts as the treasurer for the town.  She further reported that she did not have access to several Bethany accounts at Webster Bank with account numbers XXXXXXXX and XXXXXXXX.  Amadeo stated that she was copied on an email conversation between the Town of Bethany First Selectman Derrylyn Gorski and Izabet Rodriguez of Webster Bank.  In this conversation, Ms. Rodriguez asked First Selectman Gorski for permission to add Amadeo to the list of authorized users for these three accounts listed above.  Gorski responded to Rodriguez that “I do not authorize Webster Bank to provide this information. Lisa Amadeo should stop putting Webster Bank in the middle and wasting your time.  Mrs. Amadeo may ask me directly for this information.”  Amadeo explained again that she believed that she should have access to all Town of Bethany accounts and stated that Gorski was wrong for not approving her access.  Amadeo was unable to provide any documentation or legal justification for this claim.  Although Amadeo still did not have access to the particulars of the unknown transfers, she stated that she believed that the approximately $165,000 may have been associated with a STEAP grant project at Bethany airport, and was likely not stolen.  Amadeo then provided two copies of checks made out to cash from the Town of Bethany’s Webster account. Both signed by Gorski, for the amounts of $1359.01 and $1549.08. She explained that she was unaware of these transactions as well and requested for the CDMCS to look into this matter.

On 09/03/14 at approximately 1330 hours, Sgt. Seth Mancini, TFC Dave Merriam and I met directly with, interviewed, and subsequently received a verbal statement from First Selectman Derrylyn Gorski.  The interview took place at the Resident Trooper’s Office located on the second floor of the Bethany Town Hall, 40 Peck Road, Bethany, CT.  During the interview Gorski explained that the questioned transfers were associated with a STEAP grant project at Bethany Airport that was being overseen by the Department of Social Services.  She explained that Amadeo, Magda and some others in the town government were not in favor of the project, but it had been properly approved by the town government for Fiscal Year 2013, and she provided us with a copy of the grant as well as the Resolution authorizing her to conduct business contractor’s on said project on behalf of the Town of Bethany.  Additionally, when asked if she had authorized any other transactions that the Treasurer might not know about, she volunteered that due to a payroll glitch several weeks proior, it had been necessary to pay several employees directly from the main account.  The dates and amounts she remembered were generally in agreement with the second set of questioned transactions Amadeo had raised.  Gorski provided us with copies of the Town of Bethany’s Webster Bank statements and other general ledger/invoices regarding these additional questioned supporting the claim that the payments were in fact made to the specified employees.  Gorski further stated that the Town of Bethany is not missing any funds and in her capacity as a selectman she has the authority to deny Amadeo access to certain town accounts.  She explained that there was a history of political discontent between parties and she believed that these allegations stemmed from members of the opposition party not agreeing with decisions that had been made in the past.

On 09/26/14 at approximately 1100 hours, Sgt Seth Mancini and I met directly Special Agent William Ready at the FBI, 600 State St., New Haven, CT to discuss this suspicious incident.  We briefed S/A Ready and notified him of our findings.  S/A Ready advised that he had been made aware of these allegations previously, and he agreed with our assessment that there did not appear to be any criminal activity.  He indicated that he did not intend to pursue the matter further and it would be closed.

On 11/24/14 at approximately 1100 hours, I contacted Department of Social Services Associate Accounts Examiner with Quality Insurance, John Jakubowski.  Jakubowski reported that he conducted an audit on the Town of Bethany’s STEAP Airport Grant for the two transfers in question.  As a result of his investigation he concluded that all of the money in question was accounted for.  Jakubowski reported that he initially froze the account, but had since ordered the account to be unfrozen as he had completed his audit.  He understood that this matter was brought forth by the Town of Bethany Treasurer who was having a disagreement with the First Selectman.  Jaskubowski finally reported that a third signature (Board of Finance Director for the Town of Bethany) had been added to the STEAP grant account as an authorized user in attempt to clear up any anticipated future discrepancies.  Jakubowski considered this matter closed.

Conclusion:

Based on my investigation, including but not limited to statements from the complainant and witnesses, the results of the audit conducted by the Department of Social Services, and a review of the financial documentation submitted by the witnesses, I conclude that all of the funds alleged to have been stolen were properly accounted for, and there was no criminal aspect to this case.

Victim Contacted:

On 11/24/14, I spoke with Amadeo by telephone and advised her of the status of this case.

Attachments:

August 6, 2014 letter to Attorney General Jepsen

Timeline prepared by Amadeo

Town of Bethany Webster Bank statements and other financial documentation

Email from Gorski to Webster Bank

Town of Bethany resolution dated April 8, 2013

 

Case Status:

The status of this case is closed, no criminal aspect.

 

Investigating Officer: TRP Shawn R. Sequeira

Date and Time of Investigation:

On 08/19/14 at approximately 0900 hours.

Crime:

Suspicious Incident

Incident Location:

The Town of Bethany, Town Hall, 40 Peck Road, Bethany, CT 06524.

Complainant/Witness:

Lisa P. Amadeo, Treasurer for the Town of Bethany, 25 Amadeo Drive, Bethany, CT 06524

 

Summary:

By letter to Attorney General George Jepsen dated 08/06/14, Town of Bethany Treasurer Lisa P. Amadeo alleged that nearly $200,000 of unauthorized transfers had been made from a Town of Bethany municipal account at Webster Bank over the past several months, and the investigation was subsequently assigned to the Central District Major Crime Squad.  The Town of Bethany resident Trooper Dave Merriam #1227 was notified and assisted with this investigation.  Special Agent Matthew Phillips and Special Agent William Ready of the Federal Bureau of Investigation (FBI), 600 State St., New Haven, CT and Supervisory Inspector Timothy Reardon of G.A. #23, 235 Church St., New Haven, CT were notified as well.

Action Taken:

On or about Thursday, 08/21/14, Sgt Seth Mancini #0284 and Det. Jeffrey Morgan #0945 met directly with, interviewed, and subsequently received a verbal statement from the complainant/witness Lisa P. Amadeo, Treasurer for the Town of Bethany and Bethany Selectman Aileen Magda.  The interview took place at the Connecticut State Police Troop I interview room, located at 631 Amity Rd., Bethany, CT.  During the interview Amadeo reported that she is the Town of Bethany treasurer and was unaware of two transfers from the town bank account to an unknown account.  Amadeo believed that she was the only person that was supposed to have access to the town accounts and she had no information about these transactions. She requested for the state police to look into this matter.  Amadeo submitted an account detail for account XXXXXX identifying the unknown transactions.  Amadeo was requested to provide any further additional documentation as well as a list of town of Bethany’s accounts and authorize users, and then to return to provide additional information.

On 09/02/14 at approximately 1300 hours, Sgt. Seth Mancini, Det. Jeffrey Morgan, and I met directly with, interviewed, and subsequently received another verbal statement from Amadeo.  The interview took place at the Connecticut State Police Troop I interview room, located at 631 Amity Rd., Bethany, CT.  During the interview Amadeo reported that she is the Treasurer for the Town of Bethany and that on 08/06/14 she discovered an approximately $50,000 transfer from the Treasurer’s account to a different and unknown account at Webster Bank on 12/10/13,and another transfer of approximately $115,000 between the same accounts on 06/09/14. She reported that she was not aware of and did not authorize these transactions.  Amadeo reported that she should have access to all accounts as the treasurer for the town.  She further reported that she did not have access to several Bethany accounts at Webster Bank with account numbers XXXXXXXX and XXXXXXXX.  Amadeo stated that she was copied on an email conversation between the Town of Bethany First Selectman Derrylyn Gorski and Izabet Rodriguez of Webster Bank.  In this conversation, Ms. Rodriguez asked First Selectman Gorski for permission to add Amadeo to the list of authorized users for these three accounts listed above.  Gorski responded to Rodriguez that “I do not authorize Webster Bank to provide this information. Lisa Amadeo should stop putting Webster Bank in the middle and wasting your time.  Mrs. Amadeo may ask me directly for this information.”  Amadeo explained again that she believed that she should have access to all Town of Bethany accounts and stated that Gorski was wrong for not approving her access.  Amadeo was unable to provide any documentation or legal justification for this claim.  Although Amadeo still did not have access to the particulars of the unknown transfers, she stated that she believed that the approximately $165,000 may have been associated with a STEAP grant project at Bethany airport, and was likely not stolen.  Amadeo then provided two copies of checks made out to cash from the Town of Bethany’s Webster account. Both signed by Gorski, for the amounts of $1359.01 and $1549.08. She explained that she was unaware of these transactions as well and requested for the CDMCS to look into this matter.

On 09/03/14 at approximately 1330 hours, Sgt. Seth Mancini, TFC Dave Merriam and I met directly with, interviewed, and subsequently received a verbal statement from First Selectman Derrylyn Gorski.  The interview took place at the Resident Trooper’s Office located on the second floor of the Bethany Town Hall, 40 Peck Road, Bethany, CT.  During the interview Gorski explained that the questioned transfers were associated with a STEAP grant project at Bethany Airport that was being overseen by the Department of Social Services.  She explained that Amadeo, Magda and some others in the town government were not in favor of the project, but it had been properly approved by the town government for Fiscal Year 2013, and she provided us with a copy of the grant as well as the Resolution authorizing her to conduct business contractor’s on said project on behalf of the Town of Bethany.  Additionally, when asked if she had authorized any other transactions that the Treasurer might not know about, she volunteered that due to a payroll glitch several weeks proior, it had been necessary to pay several employees directly from the main account.  The dates and amounts she remembered were generally in agreement with the second set of questioned transactions Amadeo had raised.  Gorski provided us with copies of the Town of Bethany’s Webster Bank statements and other general ledger/invoices regarding these additional questioned supporting the claim that the payments were in fact made to the specified employees.  Gorski further stated that the Town of Bethany is not missing any funds and in her capacity as a selectman she has the authority to deny Amadeo access to certain town accounts.  She explained that there was a history of political discontent between parties and she believed that these allegations stemmed from members of the opposition party not agreeing with decisions that had been made in the past.

On 09/26/14 at approximately 1100 hours, Sgt Seth Mancini and I met directly Special Agent William Ready at the FBI, 600 State St., New Haven, CT to discuss this suspicious incident.  We briefed S/A Ready and notified him of our findings.  S/A Ready advised that he had been made aware of these allegations previously, and he agreed with our assessment that there did not appear to be any criminal activity.  He indicated that he did not intend to pursue the matter further and it would be closed.

On 11/24/14 at approximately 1100 hours, I contacted Department of Social Services Associate Accounts Examiner with Quality Insurance, John Jakubowski.  Jakubowski reported that he conducted an audit on the Town of Bethany’s STEAP Airport Grant for the two transfers in question.  As a result of his investigation he concluded that all of the money in question was accounted for.  Jakubowski reported that he initially froze the account, but had since ordered the account to be unfrozen as he had completed his audit.  He understood that this matter was brought forth by the Town of Bethany Treasurer who was having a disagreement with the First Selectman.  Jaskubowski finally reported that a third signature (Board of Finance Director for the Town of Bethany) had been added to the STEAP grant account as an authorized user in attempt to clear up any anticipated future discrepancies.  Jakubowski considered this matter closed.

 

 

Conclusion:

Based on my investigation, including but not limited to statements from the complainant and witnesses, the results of the audit conducted by the Department of Social Services, and a review of the financial documentation submitted by the witnesses, I conclude that all of the funds alleged to have been stolen were properly accounted for, and there was no criminal aspect to this case.

Victim Contacted:

On 11/24/14, I spoke with Amadeo by telephone and advised her of the status of this case.

Attachments:

August 6, 2014 letter to Attorney General Jepsen

Timeline prepared by Amadeo

Town of Bethany Webster Bank statements and other financial documentation

Email from Gorski to Webster Bank

Town of Bethany resolution dated April 8, 2013

 

Case Status:

The status of this case is closed, no criminal aspect.

AIRPORT HANGAR PROJECT

The Board members discussed the removal of the contaminated soil at the Airport Hangar project.  First Selectwoman Gorski detailed the progress of the project.  The contaminated soil removal is complete.  The hole will be filled with clean soil.  The contaminated soil can either be moved to the old Recycling area and covered or left where it is and covered to be moved at a later date.  The cost to complete without disposal is under $20,000.  John Ford IV asked if any of the cost could be taken from the grant money.  It cannot as the problem was caused several years ago from the old Town Garage fuel tank.  Following discussion the motion to taken up to $20,000 from the Contingency Fund to pay for contaminated soil excavation was moved by Chip Spear and seconded by John Ford IV.  The vote taken was unanimous. 

CALENDAR FOR BUDGET PREPARATION

Board members discussed the schedule for special meeting for budget preparation.  It was unanimously decided to meet every Tuesday until the budget was complete

 

 

 

ADJOURNMENT

Adjournment was called at 8:55 p.m. after a motion was moved by Chip Spear and seconded by Sally Huyser.  The vote taken was unanimous.

Respectfully submitted,

 

June G. Riley

Clerk, Board of Finance