Please  prepare  and  submit  report  to  Borough  Manager  three  (3)  days  before  each  scheduled  Caucus  Meeting  .    In  order  to  expedite  monthly  meetings,  these  reports  will  be  included  with  the  agenda  for  all  members’  review  prior  to  and  during  the  meeting.  

 

 Yeadon  Borough  Committee  Report  

 Committee  Name:   Finance  Committee  Chair:   LaToya  Monroe  Meeting  Date(s):   March  7,  2016,  10am  Attendees:       LaToya  Monroe    Summary  Narrative    Finance   Director,   Joseph   Possenti,   Jr.,   refused   to   attend   the   Finance   Committee  meeting  without  reason  or  proper  notice.    While  this  meeting  has  been  scheduled  for  more  than  a  month,   an   email   was   sent   at   9:30pm   Sunday   evening   that   he   would   not   be   present.    President  Council-­‐Harris  was  aware  of  the  refusal  to  attend.    Further  inquiries  were  made  into   the   situation   but   there   was   no   response   by   any   involved   parties.     The   meeting  continued   in   his   absence   as   there   were   several   important   items   to   discuss   including  providing  budget  clarity  and  establishing  criteria  and  processes  for  fund  requests.    Finance  Chair  was   also   prepared   to  make   a   direct   inquiry   into   the   absence   of   a   completed   2014  audit.   Additionally   there   was   an   egregious   oversight   in   the   contract   signed   ONLY   by  President  Council-­‐Harris  with  the  Possenti  firm  in  2014  that  requires  immediate  attention.    In  conclusion,  the  Finance  Committee  believes  that  the  Possenti  management  firm  could  be  a   valuable   asset   to   the   community   if   held   to   a   higher   standard   of   accountability,  transparency,   and   cooperation   with   the   ENTIRE   Council   rather   than   JUST   the   Council  President.    As  this  may  be  the  FINAL  report  by  the  current  Chair  of  the  Finance  Committee,  the   Committee   implores   the   new   Chair   to   operate   with   integrity   and   not   ignore   the  mismanagement  and  chaos  currently  plaguing  our  Council.    YEADON  DESERVES  BETTER.    The  current  Chair  hopes  the  new  Chair  has  a  proven  track  record  for  honesty,  intelligence,  attention   to   detail,   and   acute   business   acumen   because   the   last   thing   Yeadon   needs   is   a  fraudulent,  dishonest  person  who  lacks  the  professionalism  to  self-­‐correct  when  a  mistake  is   made.     It   is   also   worth   noting   that   the   current   Chair   would   NEVER   relinquish   this  position  voluntarily.    Action  Items  from  Previous  Meeting(s)  

 • Organizational  chart  with  job  descriptions  where  applicable  • Relevant  contractual  agreements  and  bond  information  • Past  due  audit  and  auditor/options  • Identifying  limitations  of  each  fund  account  • Borough  Map    • Identify   best   practices   for   requesting   funds   to   ensure   and   improve   accuracy   of  

information,  promote  transparency  and  accountability  

Please  prepare  and  submit  report  to  Borough  Manager  three  (3)  days  before  each  scheduled  Caucus  Meeting  .    In  order  to  expedite  monthly  meetings,  these  reports  will  be  included  with  the  agenda  for  all  members’  review  prior  to  and  during  the  meeting.  

• Schedule  meetings  with   key   community   stakeholders   including   but   not   limited   to  Pension   Manager,   Banking   Representative,   Information   Technology,   Auditor,   Tax  Personnel,  and  Insurance  Carrier  

• Review  and  improve  procedures  for  monitoring  property  reassessments  that  could  have  an  adverse  affect  on  the  Borough    

Current  Action  Items    

• There   is   an   absence   of   transparency   and   accountability   with   respect   to   the  incomplete  2014  Audit  of   the  Borough  finances.     It  was  discovered  that  one  major  obstacle  in  this  process  is  that  the  Possenti  firm  does  not  have  in  house  accountants.    Instead,  they  subcontract  the  accounting  services  of  Borough  to  a  small  CPA  firm  in  Media  that  has  still  not  provided  Larsen  &  Allen,  the  now  former  Auditor,  with  the  information  needed   to   complete   the  2014  Audit.     The  2015  Audit   process   usually  begins  in  April.    With  the  Possenti  firm  having  presented  and  received  authorization  to   switch   to   a   new  Auditor,   there  will   be  no  baseline   for   this   new  Auditor   to  pull  from   with   the   absence   of   a   2014   Audit.     It   is   now   evident   that   key   information  regarding   the   Possenti   firm’s   desire   to   change   auditors   was   withheld   from   the  majority  of  Council  in  the  selection  process  of  this  new  Auditor.    This  was  not  simply  a  money-­‐saving  tactic.    This  was  an  attempt  to  switch  to  an  Auditor  that  the  Possenti  firm   was   more   comfortable   with   as   they   have   not   been   able   to   meet   the   high  standards  of  best  practice  utilized  by  Larsen  &  Allen.  

• The   management   contract   with   the   Possenti   firm   was   publicly   discussed   to   be  agreed   upon   at   $295,000   per   year.   However,   upon   further   examination   of   the  contract   it   was   revealed   that   the   word   BI-­‐WEEKLY   was   substituted   for   BI-­‐MONTHLY   which   actually   agrees   to   the   firm   charging   the   Borough   $319,592  annually.     This   error   must   be   fixed   immediately   and   the   Possenti   firm   must  relinquish   any   past   and   future   rights   to   monies   owed   due   to   this   egregious  oversight.    This  contract  was  signed  ONLY  by  President  Council-­‐Harris.  

• After  a  review  of  the  Possenti  invoices,  the  Finance  Committee  discovered  that  there  was  a  previous  credit   issued  when   the   firm  did  not  provide   the  Borough  with   the  correct   number   of   full   time   staff   members   as   per   their   contract.     The   Finance  Director,   Borough   Manager   and   his   Secretary   are   simply   NOT   working   full   time  employee   hours   –   hence   the   Borough   is   not   receiving   adequate   service   for   the  payments   rendered.     The   Finance   Committee   has   been   to   the   Borough   on   official  business  on  no  less  than  10  occasions  and  these  employees  have  not  been  available  during  working  hours.    The  Finance  Director  has  been  substantially  late  to  arrive  or  absent   from  EVERY  meeting   scheduled  with   the   Finance   Committee.     This   lack   of  accessibility   has   been   a   point   of   contention   with   various   community   members  discussed   publicly   at   several  meetings   and   has   not   been   addressed.     The   Finance  Committee  made  the  suggestion  that  the  Borough  Manager  publish  available  walk-­‐in  hours  to  no  avail.    The  Finance  Committee  was  recently  physically  denied  access  to  the  Finance  Department  by   the  Borough  Manager  during  a  visit   to   the  Borough   to  provide  a  signature  on  a  check.    He  stood  in  the  doorway  and  would  not  allow  the  Finance  Chair  to  pass  until  another  employee  specifically  asked  that  Finance  Chair  be  permitted  to  come  into  the  office.    This  behavior  is  a  cause  for  great  concern.    If  the   Chair   of   the   Finance   Committee   is   being   denied   access   as   a   Councilor,   it   is  unfathomable  the  atrocities  the  public  is  being  faced  with.  

• The   claims   that   the   Possenti   firm   is   saving  money   by   switching   to   Republic   Bank  

Please  prepare  and  submit  report  to  Borough  Manager  three  (3)  days  before  each  scheduled  Caucus  Meeting  .    In  order  to  expedite  monthly  meetings,  these  reports  will  be  included  with  the  agenda  for  all  members’  review  prior  to  and  during  the  meeting.  

from   Beneficial   Bank   cannot   be   substantiated   at   this   time.     The   Beneficial   bank  statements   are   no   longer   housed   in   the   Borough   Hall.     It   is   a   dangerous   and  nefarious   practice   to   house   sensitive   Borough   information   offsite   and   out   of   the  reach   of   the   Council   and   general   public.     Practices   such   as   these   explain  why   the  Borough  is  unable  and  unwilling  to  respond  to  Right  To  Know  requests  in  a  timely  manner.      Additionally,  the  Possenti  firm  needs  to  provide  the  Borough  with  a  secure  method   to   deposit   cash   into   the   new   bank.     As   it   stands,   the   new   bank   is   in  Springfield  and  cash  received  by  the  Borough  has  to  be  physically  taken  to  the  bank,  requiring  the  cash  to  change  hands  several  times,  by  whoever  is  available  to  make  the   deposit.     This   ill-­‐advised   practice   leaves   the   Borough   vulnerable   to   theft   and  often  removes  several  Borough  employees  from  their  responsibilities  for  hours  at  a  time.  The  bank  also  requires  that  the  Borough  scans  its  own  checks  rather  than  take  them  to  the  bank.    This  requires  additional  time  to  be  used  by  Borough  employees  that  was  not  a  requirement  of  Beneficial  bank  –  a  local  bank.  Several  other  banks  are  available,   in   the   area   and   would   not   require   such   extensive   involvement   at   the  expense  of  Borough  employees.  

• Due   to   the   lack   of   transparency,   auditing   and   denial   of   access   to   Borough  documents,  the  Finance  Committee  feels   it   is  necessary  to  reinstate  the  position  of  Borough  Treasurer  effective  immediately.    The  Borough  needs  someone  to  provide  oversight   to   the  management   firm   to   ensure   best   practices   are   being   adhered   to.    The  Borough  previously  allotted  $10,000/year  for  the  Treasure  position.    Since  this  position   has   been   deemed   necessary   due   to   the   firm’s   underperformance,   the  Finance   Committee   believes   the   firm   should   absorb   the   cost   of   reinstating   the  position.    As  it  stands,  the  firm  runs  the  Borough  and  the  Council  is  expected  to  look  the   other  way-­‐  with   the   exception   of   the   President   of   Council   who   is   in   constant  communication  with  the  Possenti  firm,  yet  has  not  held  them  accountable  for  their  shortfalls  or  misdeeds.  

• There   is   currently   no   procedure   in   place   for   requesting   funds   from   the   Borough.    Just  because  an  item  is  listed  in  the  budget  does  not  mean  that  the  monies  should  be  allowed   to   be   accessed   without   a   process   or   approval.     This   lack   of   documented  procedure  leaves  the  Borough  vulnerable  to  theft  and  mismanagement  of  funds.    

Formal  Motions  to  the  Council    

• The   Finance   Committee   would   like   Council   to   entertain   a   motion   to   revise   the  contract  with  the  Possenti  management   firm  to  accurately  reflect   the  amount  they  are  being  paid  as  well  as  require  the  Possenti   firm  to  relinquish  any  rights  to  past  compensation  due   to   the   erroneous   contract.     The   Finance  Committee  would   also  demand  written  documentation   of   the   “discount”   provided   for   the   past   two   years  service   and   provide   a   reason   this   “discount”   is   no   longer   applied   –   costing   the  Borough  $20,000  more  annually  for  ongoing,  subpar  services.  

• The  Finance  Committee  would  like  Council  to  entertain  a  motion  that  would  require  the  employees  provided  by  the  Possenti  management  firm  to  publish  their  working  hours  and   institute  a  system  of  checks  and  balances   to  ensure  that   the  Borough   is  receiving  the  services  for  which  it  is  paying.  

• The  Finance  Committee  would   like   Council   to   entertain   a  motion   for   the  Possenti  firm   to   refund   a   portion   of   their   fees   in   light   of   services   not   being   rendered  according  to  their  contract.  

• The  Finance  Committee  would   like  Council   to  entertain  a  motion   to   reactivate   the  

Please  prepare  and  submit  report  to  Borough  Manager  three  (3)  days  before  each  scheduled  Caucus  Meeting  .    In  order  to  expedite  monthly  meetings,  these  reports  will  be  included  with  the  agenda  for  all  members’  review  prior  to  and  during  the  meeting.  

position   of   Borough   Treasurer   immediately   and   authorize   the   Finance   Chair   to  conduct  a  search  to  fill  this  position  absent  the  influence  of  the  management  firm  as  it  would  be   a   conflict   of   interest   for   them   to  have   input   over   the  person   that  will  oversee  their  practices.  

• The   Finance   Committee   would   like   Council   to   entertain   a   motion   to   refuse   to  consider   invoices   during   Council   meetings   that   have   not   been   presented   and  discussed   at   the   regularly   scheduled   Caucus  meeting   and   placed   on   the   Accounts  Payable  (AP)  list  –  with  the  exception  of  agreed  upon  prepaid  items  such  as  bills  for  which  the  Borough  may  incur  late  fees  (i.e.  utility,  copier  rental,  etc.)  

• The   Finance   Committee   would   like   Council   to   entertain   a   motion   to   require   the  Possenti   firm   to   immediately   establish   a   safe,   reliable   and   non-­‐cumbersome  procedure  for  banking  services  with  special  attention  being  made  to  handling  cash  deposits.  

 Next  Meeting  Date:   April  11,  2016,  10am