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