Have a question you’d like to ask Mooresville's town board? Here’s your chance:
"Citizens for Responsible Government" has invited Mooresville commissioners to join area residents in a “Town Hall meeting” on Wednesday, Oct. 15, from 6-8:30 p.m. in the youth services room of the Mooresville Public Library.
Local pastor Larry Green -- founder of Citizens for Responsible Government -- organized the Town Hall meeting and plans to moderate the event. In addition to general topics "related to the welfare and leadership of our town," Green said, specific topics up for discussion will include Cops for Kids; the town’s hiring of engineering firm CH2M Hill for the expansion of the Rocky River Wastewater Treatment Plant; the town’s purchase of the bankrupt Adelphia cable system (MI-Connection) and a potential recall option.
Of Mooresville’s six commissioners, three have responded to Green’s invitation. Commissioners Chris Carney and Miles Atkins said they plan to attend, while Commissioner Mitch Abraham said he has a conflict that night with another previously scheduled meeting. Additionally, Abraham said he has “church committments (sic) on Wednesday evenings.”
However, he told Green: “If I am able to move the other meeting, I will notify you of my intentions.”
Referencing the open meetings law, Abraham said, “I will also yield to the other commissioners for the reason that if 3 or more of us are gathered at the same place for purposes other than social, it may be considered an official meeting and I believe that may involve town staff be involved for record keeping purposes.” Abraham referred Green to Town Attorney Steve Gambill for a “ruling.”
Carney, responding to Green’s invitation, wrote: “I will be happy to attend and look forward to answering questions from the citizens of Mooresville.
“Also,” Carney added, “I welcome the opportunity to explain any decisions I have made or my position on existing issues facing Mooresville.”
If you have a question you'd like to ask, you can submit it in advance by contacting Green at 704-746-8674 or by e-mailing it to him at admin@cfrgm.org.
Event organizers will consolidate the questions into “thematic units,” said Green, “ to avoid repetition and to promote as much public involvement as possible.”
Green plans to follow a meeting agenda, which includes three-minute statements from each commissioner and a moderator-controlled Q&A session using your previously submitted questions. Commissioners, said Green, will have one minute to respond to each question. If time permits, Green said he will allow questions from the floor, with first priority given to those who did not previously submit questions. Those in attendance who did previously submit questions will be limited to one “open-floor” question, he said.
Green said a video of the Town Hall meeting – as well as the text of all responses – will be made available online at http://www.cfrgm.org/.
Monday, September 29, 2008
Friday, September 26, 2008
Crone's grievance and the town's personnel policy
The Town of Mooresville’s personnel policy allows for an employee to file a grievance within 14 calendar days of disciplinary action.
The Mooresville Tribune reported today that the town’s former police chief, John Crone, has filed a grievance with the Town of Mooresville over his firing on Aug. 7. (http://mooresvilletribune.com/servlet/Satellite?pagename=MOT/MGArticle/MOT_BasicArticle&c=MGArticle&cid=1173356123573)
Though some readers have expressed concerns since the news was posted earlier today – with many of them wondering why Crone apparently received 50 calendar days to file his grievance – the question that must first be answered is this: when did Crone first file the grievance?
Citing personnel statutes, Town Attorney Steve Gambill declined to say today, explaining: “My inclination is that such information is part of the grievance itself and by implication, part of the personnel file.
“I am trying to avoid the proverbial ‘splitting of hairs,’” Gambill added, “but I don’t know of any other way to interpret the personnel law statute (GS 160A-168) other than to lean this way.”
But what we do know is this: For the town to accept the grievance in accordance with its own personnel policy, Crone would have had to file his grievance with Assistant Town Manager Erskine Smith (who was interim town manager until Sept. 2) by Aug. 21.
Smith had 14 days to respond to the grievance. And apparently Crone was not satisfied with Smith’s response, so he appealed to Mooresville’s new town manager, Steve Husemann.
Gambill explains:
“Article X, Section 4 of the Personnel Policy sets out three steps in the grievance process:
“In Step 1,” Gambill said, “an employee has 14 days from the time of the employment action to file the grievance. The employee’s supervisor then has 14 days to respond after receiving the grievance.
“In Step 2,” Gambill continued, “if the grievance is not resolved to the employee’s satisfaction in Step 1, the employee may appeal to the next level supervisor within 14 days after receiving the response in Step 1. This supervisor then has 14 days to respond."
Finally, Gambill said, “In Step 3, if the grievance is not resolved to the satisfaction of the employee at the end of Step 2, the employee may appeal in writing within 14 days to the Town Manager or Assistant Town Manager, according to whom they report to.”
Gambill went on to put those steps into perspective concerning Crone: “He had 14 days after his termination to file a grievance to Mr. Smith who issued the termination. Mr. Smith then had 14 days after receiving it to respond.
“Mr. Crone then had 14 days after receipt of Mr. Smith’s response to appeal to the Town Manager,” Gambill said, adding, “The Town Manager then has 14 days to respond to Mr. Crone."
While Gambill did not say when Crone’s original grievance was filed, he did say that employees must “follow the steps outlined in the policy” and that “one step is completed before the next step is initiated.”
The Mooresville Tribune reported today that the town’s former police chief, John Crone, has filed a grievance with the Town of Mooresville over his firing on Aug. 7. (http://mooresvilletribune.com/servlet/Satellite?pagename=MOT/MGArticle/MOT_BasicArticle&c=MGArticle&cid=1173356123573)
Though some readers have expressed concerns since the news was posted earlier today – with many of them wondering why Crone apparently received 50 calendar days to file his grievance – the question that must first be answered is this: when did Crone first file the grievance?
Citing personnel statutes, Town Attorney Steve Gambill declined to say today, explaining: “My inclination is that such information is part of the grievance itself and by implication, part of the personnel file.
“I am trying to avoid the proverbial ‘splitting of hairs,’” Gambill added, “but I don’t know of any other way to interpret the personnel law statute (GS 160A-168) other than to lean this way.”
But what we do know is this: For the town to accept the grievance in accordance with its own personnel policy, Crone would have had to file his grievance with Assistant Town Manager Erskine Smith (who was interim town manager until Sept. 2) by Aug. 21.
Smith had 14 days to respond to the grievance. And apparently Crone was not satisfied with Smith’s response, so he appealed to Mooresville’s new town manager, Steve Husemann.
Gambill explains:
“Article X, Section 4 of the Personnel Policy sets out three steps in the grievance process:
“In Step 1,” Gambill said, “an employee has 14 days from the time of the employment action to file the grievance. The employee’s supervisor then has 14 days to respond after receiving the grievance.
“In Step 2,” Gambill continued, “if the grievance is not resolved to the employee’s satisfaction in Step 1, the employee may appeal to the next level supervisor within 14 days after receiving the response in Step 1. This supervisor then has 14 days to respond."
Finally, Gambill said, “In Step 3, if the grievance is not resolved to the satisfaction of the employee at the end of Step 2, the employee may appeal in writing within 14 days to the Town Manager or Assistant Town Manager, according to whom they report to.”
Gambill went on to put those steps into perspective concerning Crone: “He had 14 days after his termination to file a grievance to Mr. Smith who issued the termination. Mr. Smith then had 14 days after receiving it to respond.
“Mr. Crone then had 14 days after receipt of Mr. Smith’s response to appeal to the Town Manager,” Gambill said, adding, “The Town Manager then has 14 days to respond to Mr. Crone."
While Gambill did not say when Crone’s original grievance was filed, he did say that employees must “follow the steps outlined in the policy” and that “one step is completed before the next step is initiated.”
Former chief files grievance over firing
Click the link below to view the entire article from the Mooresville Tribune online ..
http://mooresvilletribune.com/servlet/Satellite?pagename=MOT/MGArticle/MOT_BasicArticle&c=MGArticle&cid=1173356123573
http://mooresvilletribune.com/servlet/Satellite?pagename=MOT/MGArticle/MOT_BasicArticle&c=MGArticle&cid=1173356123573
Town eases water restrictions
Mooresville residents now have an extra day a week to water lawns, wash cars, top off swimming pools and run outdoor water fountains. Here's the press release with all the details (click on the document to see a larger version):
Monday, September 22, 2008
Commissioners left in the dark this time, too
No doubt, I have criticized Mooresville commissioners many times in the past for conducting the peoples’ business behind closed doors – for their seeming unwillingness to be open and honest with the public, their constituents, about issues of importance to us.
But maybe sometimes it isn’t because the commissioners refuse to be open and honest with us – maybe it’s because they themselves are left in the dark when town staff isn’t providing pertinent information to them.
At least one commissioner has had to repeatedly demand updates on the ongoing Cops for Kids investigations that the town launched in July. Despite that, as recently as last week, commissioners were caught off guard by a new development in the Cops for Kids investigations that, come to find out, isn’t really so new.
Two Town Hall finance administrators have been aware since July of the former police chief’s potential misuse of drug asset forfeiture funds, but they didn't see fit to inform commissioners about it until last week – and only after the Report visited Town Hall to retrieve documents related to the matter.
Town Finance Director Maia Setzer said today that she, along with Town Accountant Deborah Hockett and Acting Police Chief Carl Robbins, notified an SBI agent on July 31 about the issue.
Town Attorney Steve Gambill said the U.S. Attorney’s office was notified on Thursday, Sept. 18, about former police chief John Crone’s potential misappropriation of federal funds. “Other than what was in the press release,” Gambill said, “I am not at liberty to discuss it beyond that point. If there is a point when I can discuss this in more detail I will be glad to but I cannot do so at present.”
Commissioners Mitch Abraham said he first learned about the potential problem with the drug asset forfeiture accounts on Wednesday afternoon, Sept. 17, when Setzer sent the following e-mail to commissioners (click the document to enlarge):
“The last sentence,” said Abraham, “was when I first heard of any discrepancies or had any ideas of the drug asset forfeiture monies being involved in any of the investigations.
“Besides being told of the upcoming release to the media on this past Friday,” Abraham added, “I have not talked with any staff about these discrepancies.”
In an e-mail on Sept. 18, obtained by the Mooresville Tribune and the Report in a public-records request last week, Commissioner Miles Atkins asked Setzer when she first became aware of the discrepancies. He also asked “who else has known about this prior to the board being made aware of it” – and how long they have known.
Setzer responded: “I began comparing the spreadsheet to our financial system when I received a full copy from the police department on Monday and after Ms. Gatton asked where she could obtain information about the asset forfeiture accounts.
“I asked Deborah Hockett to help me with the comparison of the two files on Tuesday afternoon,” Setzer said. “I notified the town manager and town attorney of the discrepancies we were continuing to find on Wednesday.”
She told Atkins that “any employee can maintain any type of a spreadsheet. The fact that it is maintained does not make it factual or ‘official’. Departments have maintained their own financial information for years as they did not have access to our financial system until we began the implementation of Munis.”
Setzer did not answer Atkins’ question about who knew about the issue – and for how long – before the town board was informed.
Commissioners Frank Rader and Miles Atkins said they learned of the problem mid-week last week – “apparently right after you left (Setzer's) office with the records (on Wednesday),” said Atkins, responding to Report questions today.
Commissioners Mac Herring and Chris Carney were informed by Gambill about the matter late Tuesday night, Sept. 16.
Carney said he had “lengthy conversations with staff” on Wednesday and Thursday “trying to understand exactly what had happened and encouraging us (the town) to be completely honest with any misappropriations that had been found.”
Abraham and Herring commended Town Manager Steve Husemann – who began work here on Sept. 2 – for what Herring called his “proactive approach.”
“He was immediately forthcoming and made the appropriate request to the outside agencies who needed to be involved,” Herring said. “His press release indicates that a new era for a transparent and more openly honest municipal administration has finally arrived here in Mooresville.
“I believe this is the tone being set,” Herring added, “and as a result, many of the concerns and ‘hunker down’ mentality that has plagued us in the past will soon be greatly diminished. It is a new and exciting time for us here in Mooresville, and I am proud to be a part of it.”
Likewise, Abraham said: “Mr. Husemann’s comments in Friday’s media release give me great hope that we will use these negatives in the process to produce a positive result to better the system and make sure that this does not happen in the future in any of our departments.”
Abraham said he feels confident that with the town’s reporting of the potential misappropriations to the U.S. Attorney, “these documents will be well researched for any further misgivings and wrongdoings and then reported to us and the citizens of Mooresville.”
Abraham said the town must continue to look for the investigations to answer many of the unanswered questions. “These investigations must continue, no matter what length of time they take to be complete, so as to be complete and as thorough as possible.
“This does not mean I personally like the amount of time that it is taking,” Abraham said, adding however that he wants “all of the investigations to be vetted to the fullest!!”
When all the results are in, Abraham said, “I will push for any punishment to the letter of the law that is recommended by this investigation.”
When asked his reaction to the recent development in the Cops for Kids investigations, Rader responded: “Not reacting. This is labeled potential and report is in process.”
Carney, however, said: “My reaction was probably the same as the public’s: how could something like this happen?!
“I was very unhappy and further disappointed,” he said. “I asked for a meeting with Mrs. Setzer, Mr. Husemann, and Mr. Gambill to understand what possible laws had been broken and what public statements we were prepared to make.”
Carney said he hopes to “get a better understanding of who in administration knew what (and) when,” regarding the former police chief’s potential misuse of funds.
Both Carney and Atkins are looking beyond the Cops for Kids situation and into the future, attempting to find a way to prevent these kinds of situations from reoccurring.
Carney said he wants commissioners and town staff to “look into what opportunities we have to better implement checks and balances with department budgets.
“As you know,” he said, “the board approves an overall budget and then staff and administration are responsible for maintaining expenses within that budget.”
However, Carney asked: “What happens when a department head has authority to divert expenditures within their budget, or additional funding from outside sources?”
Carney said he believes “many, many meetings will take place in upcoming days and weeks to discuss these two questions!”
A clearly frustrated Atkins added: “Is this symptomatic of a much larger problem throughout the town?”
He said “past incidents involving questionable accounting practices” have made it “obvious” that the town doesn’t have “the oversight nor checks and balances in place.”
He said “the question that begs to be asked is: do we have the right people in the right positions to oversee and account for the financial integrity of the town?
“I would imagine at some point Mr. Husemann will be asking himself that same question,” Atkins said.
But maybe sometimes it isn’t because the commissioners refuse to be open and honest with us – maybe it’s because they themselves are left in the dark when town staff isn’t providing pertinent information to them.
At least one commissioner has had to repeatedly demand updates on the ongoing Cops for Kids investigations that the town launched in July. Despite that, as recently as last week, commissioners were caught off guard by a new development in the Cops for Kids investigations that, come to find out, isn’t really so new.
Two Town Hall finance administrators have been aware since July of the former police chief’s potential misuse of drug asset forfeiture funds, but they didn't see fit to inform commissioners about it until last week – and only after the Report visited Town Hall to retrieve documents related to the matter.
Town Finance Director Maia Setzer said today that she, along with Town Accountant Deborah Hockett and Acting Police Chief Carl Robbins, notified an SBI agent on July 31 about the issue.
Town Attorney Steve Gambill said the U.S. Attorney’s office was notified on Thursday, Sept. 18, about former police chief John Crone’s potential misappropriation of federal funds. “Other than what was in the press release,” Gambill said, “I am not at liberty to discuss it beyond that point. If there is a point when I can discuss this in more detail I will be glad to but I cannot do so at present.”
Commissioners Mitch Abraham said he first learned about the potential problem with the drug asset forfeiture accounts on Wednesday afternoon, Sept. 17, when Setzer sent the following e-mail to commissioners (click the document to enlarge):
“The last sentence,” said Abraham, “was when I first heard of any discrepancies or had any ideas of the drug asset forfeiture monies being involved in any of the investigations.
“Besides being told of the upcoming release to the media on this past Friday,” Abraham added, “I have not talked with any staff about these discrepancies.”
In an e-mail on Sept. 18, obtained by the Mooresville Tribune and the Report in a public-records request last week, Commissioner Miles Atkins asked Setzer when she first became aware of the discrepancies. He also asked “who else has known about this prior to the board being made aware of it” – and how long they have known.
Setzer responded: “I began comparing the spreadsheet to our financial system when I received a full copy from the police department on Monday and after Ms. Gatton asked where she could obtain information about the asset forfeiture accounts.
“I asked Deborah Hockett to help me with the comparison of the two files on Tuesday afternoon,” Setzer said. “I notified the town manager and town attorney of the discrepancies we were continuing to find on Wednesday.”
She told Atkins that “any employee can maintain any type of a spreadsheet. The fact that it is maintained does not make it factual or ‘official’. Departments have maintained their own financial information for years as they did not have access to our financial system until we began the implementation of Munis.”
Setzer did not answer Atkins’ question about who knew about the issue – and for how long – before the town board was informed.
Commissioners Frank Rader and Miles Atkins said they learned of the problem mid-week last week – “apparently right after you left (Setzer's) office with the records (on Wednesday),” said Atkins, responding to Report questions today.
Commissioners Mac Herring and Chris Carney were informed by Gambill about the matter late Tuesday night, Sept. 16.
Carney said he had “lengthy conversations with staff” on Wednesday and Thursday “trying to understand exactly what had happened and encouraging us (the town) to be completely honest with any misappropriations that had been found.”
Abraham and Herring commended Town Manager Steve Husemann – who began work here on Sept. 2 – for what Herring called his “proactive approach.”
“He was immediately forthcoming and made the appropriate request to the outside agencies who needed to be involved,” Herring said. “His press release indicates that a new era for a transparent and more openly honest municipal administration has finally arrived here in Mooresville.
“I believe this is the tone being set,” Herring added, “and as a result, many of the concerns and ‘hunker down’ mentality that has plagued us in the past will soon be greatly diminished. It is a new and exciting time for us here in Mooresville, and I am proud to be a part of it.”
Likewise, Abraham said: “Mr. Husemann’s comments in Friday’s media release give me great hope that we will use these negatives in the process to produce a positive result to better the system and make sure that this does not happen in the future in any of our departments.”
Abraham said he feels confident that with the town’s reporting of the potential misappropriations to the U.S. Attorney, “these documents will be well researched for any further misgivings and wrongdoings and then reported to us and the citizens of Mooresville.”
Abraham said the town must continue to look for the investigations to answer many of the unanswered questions. “These investigations must continue, no matter what length of time they take to be complete, so as to be complete and as thorough as possible.
“This does not mean I personally like the amount of time that it is taking,” Abraham said, adding however that he wants “all of the investigations to be vetted to the fullest!!”
When all the results are in, Abraham said, “I will push for any punishment to the letter of the law that is recommended by this investigation.”
When asked his reaction to the recent development in the Cops for Kids investigations, Rader responded: “Not reacting. This is labeled potential and report is in process.”
Carney, however, said: “My reaction was probably the same as the public’s: how could something like this happen?!
“I was very unhappy and further disappointed,” he said. “I asked for a meeting with Mrs. Setzer, Mr. Husemann, and Mr. Gambill to understand what possible laws had been broken and what public statements we were prepared to make.”
Carney said he hopes to “get a better understanding of who in administration knew what (and) when,” regarding the former police chief’s potential misuse of funds.
Both Carney and Atkins are looking beyond the Cops for Kids situation and into the future, attempting to find a way to prevent these kinds of situations from reoccurring.
Carney said he wants commissioners and town staff to “look into what opportunities we have to better implement checks and balances with department budgets.
“As you know,” he said, “the board approves an overall budget and then staff and administration are responsible for maintaining expenses within that budget.”
However, Carney asked: “What happens when a department head has authority to divert expenditures within their budget, or additional funding from outside sources?”
Carney said he believes “many, many meetings will take place in upcoming days and weeks to discuss these two questions!”
A clearly frustrated Atkins added: “Is this symptomatic of a much larger problem throughout the town?”
He said “past incidents involving questionable accounting practices” have made it “obvious” that the town doesn’t have “the oversight nor checks and balances in place.”
He said “the question that begs to be asked is: do we have the right people in the right positions to oversee and account for the financial integrity of the town?
“I would imagine at some point Mr. Husemann will be asking himself that same question,” Atkins said.
Friday, September 19, 2008
Former police chief violated federal regulations
Cops for Kids wasn’t the only fund that former Mooresville Police Chief John Crone mishandled.
In 2002, Crone violated federal guidelines when he used $4,862 in federal asset forfeiture funds to pay airfare costs for the Mayor’s Youth Council trip to New York City.
The federal asset forfeiture program is a nationwide cooperative effort among federal, state and local law enforcement agencies that share proceeds resulting from federal forfeitures of assets – such as money and property – used in crimes. The local agencies that are responsible for the seizure or forfeiture of property receive up to 80 percent of the proceeds, while the federal government keeps 20 percent.
But the money has strings attached in the form of guidelines for how it can be spent. In a 1994 U.S. Department of Justice memo titled “Equitable Transfers of Forfeited Monies or Properties,” Assistant Attorney General Walter Dellinger stated: “When the federal government makes an equitable transfer of forfeited monies or property to a state or local law enforcement agency, that transfer is more appropriately characterized as a conditional gift to the agency rather than as a formal contract between the federal government and the agency.
“If the state or local agency fails to use the transferred property for law enforcement purposes, the federal government may be able to pursue restitution of the property.”
Airline tickets for the 2002 Mayor’s Youth Council and chaperones – including then-Mayor Al Jones – would appear to be an impermissible use of shared assets under at least the following three sections:
(c) Payment of Non-Law Enforcement Expenses. Shared funds may be used to pay the expenses for drug testing of law enforcement personnel, but may not be used for the testing of all municipal employees. Shared funds may not be used for scholarships or financial aid, except for law enforcement personnel pursuing training that is necessary to the performance of their official duties.
(f) Non-Official Government use of Shared Assets. Any use that creates the appearance that shared funds are being used for political or personal purposes is not permitted. For example, the use of shared funds for a sheriff’s campaign paraphernalia is impermissible. The use of shared funds to settle a lawsuit is not a permissible use.
(h) Extravagant Expenditures. Receiving agencies should use federal sharing monies prudently and in such a manner as to avoid any appearance of extravagance, waste, or impropriety. The payment of personal credit card bills, the purchase of meals (except personal meals incurred during official law enforcement travel), alcoholic beverages and other such expenditures are impermissible.
For a complete look at the federal guidelines, provided by Town Hall, click on the documents below:
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The federal government can grant permission on a case-by-case basis for local agencies to use the shared funds for purposes other than those listed as permissible. However, the Town of Mooresville provided no such documentation on Wednesday, when the Report obtained from Town Hall copies of Crone’s expenditures from the shared asset funds from 2002 through 2008.
Just about an hour ago, the Town of Mooresville released the following statement to the press:
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After 2002, Crone did not use federal asset forfeiture money for the Mayor’s Youth Council trips; instead, he began in 2003 to use state drug tax money – formally called Unauthorized Substance Abuse Tax – in conjunction with Cops for Kids funds.
A cursory review of the state drug tax expenditures recorded by Crone shows that the former police chief used more than $25,000 from 2003 to 2008 to fund trips for the Mayor’s Youth Council, accompanied from time to time by the Police Explorers. Crone spent an additional $20,000 on the trips from his Cops for Kids fund, according to his own balance sheet.
Town Finance Director Maia Setzer said “discrepancies” exist between Crone’s expenditure sheet from the drug tax fund and the finance office’s audited ledgers.
The state drug tax fund has no restrictions on how local agencies can spend the money. However, the N.C. Attorney General has issued an opinion on the matter, which the Report is in the process of obtaining. As soon as we’ve been able to fully scrutinize the state drug-tax records – and compare them with Crone’s town purchasing-card statements, the town’s audited drug-tax ledgers and the Cops for Kids expenditures – we’ll let you know what we find.
Meanwhile, the town’s investigations into the Cops for Kids fund are ongoing.
Town Manager Steve Husemann told commissioners and town administrators in an e-mail this week that he, Setzer and Town Attorney Steve Gambill met on Wednesday “to review the status of the current investigations.”
“I am generally keeping out of that process,” Husemann said, “but I do want to address where we are going and how we can get there as soon as possible.”
He said the town needs to “put procedures in effect which will assure that similar events cannot happen in the future.”
Setzer also e-mailed commissioners an update on each investigation on Wednesday.
Internal investigation/SBI probe
The internal investigation being led by Ken Andrews of Special Investigative Services “is complete with documentation returned to the Town of Mooresville,” Setzer said.
The investigation, she added, “was not fully completed by Mr. Andrews as the N.C. State Bureau of Investigation asked Mr. Andrews to stop his interviews of certain people so that the Special Agent could interview them for his investigation.
“Once the Special Agent gives us permission to do so,” Setzer said, “Mr. Andrews may continue his interviews.”
Setzer said that the SBI’s Special Agent assigned to the Cops for Kids case “has not discussed his investigation with me.” She said, however, that she has a meeting scheduled with him today, Sept. 19, and “if there’s anything I can relay to you following that meeting, I will.”
Financial audits
Setzer also told commissioners that the first financial investigation, or audit, “is essentially as complete as it can be given the documents the town has received regarding the Cops for Kids bank records,” Setzer added. “The documentation of the investigation has been received and will be shared with the SBI and the secondary financial reviewers as appropriate.”
Setzer said that the town has remitted a contract to Greer and Walker, LLC and that “I have received word … that the firm expects to accept the engagement.
“When I receive final confirmation of that agreement and the firm begins work,” Setzer told commissioners, “I will let you know.”
Evidence room
The first review of the police department’s evidence room, directed by the SBI, is complete, Setzer said. “We have been asked by the SBI to conduct an additional audit which will be done under the direction of the SBI.”
Husemann added that the Mooresville Police Department has developed a “property (evidence) room physical layout plan.”
Under Setzer’s direction, Husemann said, “We plan to inventory and remove everything from the property room and place it in a sealed POD. We will then have shelving installed in the property room and return the evidence in an organized and recorded fashion.
“That which is no longer needed will be disposed of in accordance with state law,” Husemann continued. “We plan to order security doors for the property room which will record every time the door is opened and by whom. It will also be documented with video tape.”
He said that some of the items will require town board approval because of cost. “This may seem like overkill,” he said, “but it is probably the norm for the more professional departments.”
Husemann added that the town “will obviously coordinate this with the SBI, but we feel that this would not interfere with their investigation.” Also, he warned: “This will be a very lengthy process.”
The town manager also told commissioners that the finance department will work with the police department “to assure the proper recording of all revenues and expenditures related to the property room and the state and federal drug forfeiture accounts. This would also address the disposal of future property no longer needed for evidence.”
Finally, Husemann said he is interested in seeking accreditation of the Mooresville Police Department through CALEA (Commission on Accreditation for Law Enforcement Agencies, Inc.). “While this is an expensive and time consuming process, it would have avoided a lot of the problems that we are facing today,” Husemann said. “It would also help re-establish the credibility to the department.”
In 2002, Crone violated federal guidelines when he used $4,862 in federal asset forfeiture funds to pay airfare costs for the Mayor’s Youth Council trip to New York City.
The federal asset forfeiture program is a nationwide cooperative effort among federal, state and local law enforcement agencies that share proceeds resulting from federal forfeitures of assets – such as money and property – used in crimes. The local agencies that are responsible for the seizure or forfeiture of property receive up to 80 percent of the proceeds, while the federal government keeps 20 percent.
But the money has strings attached in the form of guidelines for how it can be spent. In a 1994 U.S. Department of Justice memo titled “Equitable Transfers of Forfeited Monies or Properties,” Assistant Attorney General Walter Dellinger stated: “When the federal government makes an equitable transfer of forfeited monies or property to a state or local law enforcement agency, that transfer is more appropriately characterized as a conditional gift to the agency rather than as a formal contract between the federal government and the agency.
“If the state or local agency fails to use the transferred property for law enforcement purposes, the federal government may be able to pursue restitution of the property.”
Airline tickets for the 2002 Mayor’s Youth Council and chaperones – including then-Mayor Al Jones – would appear to be an impermissible use of shared assets under at least the following three sections:
(c) Payment of Non-Law Enforcement Expenses. Shared funds may be used to pay the expenses for drug testing of law enforcement personnel, but may not be used for the testing of all municipal employees. Shared funds may not be used for scholarships or financial aid, except for law enforcement personnel pursuing training that is necessary to the performance of their official duties.
(f) Non-Official Government use of Shared Assets. Any use that creates the appearance that shared funds are being used for political or personal purposes is not permitted. For example, the use of shared funds for a sheriff’s campaign paraphernalia is impermissible. The use of shared funds to settle a lawsuit is not a permissible use.
(h) Extravagant Expenditures. Receiving agencies should use federal sharing monies prudently and in such a manner as to avoid any appearance of extravagance, waste, or impropriety. The payment of personal credit card bills, the purchase of meals (except personal meals incurred during official law enforcement travel), alcoholic beverages and other such expenditures are impermissible.
For a complete look at the federal guidelines, provided by Town Hall, click on the documents below:
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The federal government can grant permission on a case-by-case basis for local agencies to use the shared funds for purposes other than those listed as permissible. However, the Town of Mooresville provided no such documentation on Wednesday, when the Report obtained from Town Hall copies of Crone’s expenditures from the shared asset funds from 2002 through 2008.
Just about an hour ago, the Town of Mooresville released the following statement to the press:
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After 2002, Crone did not use federal asset forfeiture money for the Mayor’s Youth Council trips; instead, he began in 2003 to use state drug tax money – formally called Unauthorized Substance Abuse Tax – in conjunction with Cops for Kids funds.
A cursory review of the state drug tax expenditures recorded by Crone shows that the former police chief used more than $25,000 from 2003 to 2008 to fund trips for the Mayor’s Youth Council, accompanied from time to time by the Police Explorers. Crone spent an additional $20,000 on the trips from his Cops for Kids fund, according to his own balance sheet.
Town Finance Director Maia Setzer said “discrepancies” exist between Crone’s expenditure sheet from the drug tax fund and the finance office’s audited ledgers.
The state drug tax fund has no restrictions on how local agencies can spend the money. However, the N.C. Attorney General has issued an opinion on the matter, which the Report is in the process of obtaining. As soon as we’ve been able to fully scrutinize the state drug-tax records – and compare them with Crone’s town purchasing-card statements, the town’s audited drug-tax ledgers and the Cops for Kids expenditures – we’ll let you know what we find.
Meanwhile, the town’s investigations into the Cops for Kids fund are ongoing.
Town Manager Steve Husemann told commissioners and town administrators in an e-mail this week that he, Setzer and Town Attorney Steve Gambill met on Wednesday “to review the status of the current investigations.”
“I am generally keeping out of that process,” Husemann said, “but I do want to address where we are going and how we can get there as soon as possible.”
He said the town needs to “put procedures in effect which will assure that similar events cannot happen in the future.”
Setzer also e-mailed commissioners an update on each investigation on Wednesday.
Internal investigation/SBI probe
The internal investigation being led by Ken Andrews of Special Investigative Services “is complete with documentation returned to the Town of Mooresville,” Setzer said.
The investigation, she added, “was not fully completed by Mr. Andrews as the N.C. State Bureau of Investigation asked Mr. Andrews to stop his interviews of certain people so that the Special Agent could interview them for his investigation.
“Once the Special Agent gives us permission to do so,” Setzer said, “Mr. Andrews may continue his interviews.”
Setzer said that the SBI’s Special Agent assigned to the Cops for Kids case “has not discussed his investigation with me.” She said, however, that she has a meeting scheduled with him today, Sept. 19, and “if there’s anything I can relay to you following that meeting, I will.”
Financial audits
Setzer also told commissioners that the first financial investigation, or audit, “is essentially as complete as it can be given the documents the town has received regarding the Cops for Kids bank records,” Setzer added. “The documentation of the investigation has been received and will be shared with the SBI and the secondary financial reviewers as appropriate.”
Setzer said that the town has remitted a contract to Greer and Walker, LLC and that “I have received word … that the firm expects to accept the engagement.
“When I receive final confirmation of that agreement and the firm begins work,” Setzer told commissioners, “I will let you know.”
Evidence room
The first review of the police department’s evidence room, directed by the SBI, is complete, Setzer said. “We have been asked by the SBI to conduct an additional audit which will be done under the direction of the SBI.”
Husemann added that the Mooresville Police Department has developed a “property (evidence) room physical layout plan.”
Under Setzer’s direction, Husemann said, “We plan to inventory and remove everything from the property room and place it in a sealed POD. We will then have shelving installed in the property room and return the evidence in an organized and recorded fashion.
“That which is no longer needed will be disposed of in accordance with state law,” Husemann continued. “We plan to order security doors for the property room which will record every time the door is opened and by whom. It will also be documented with video tape.”
He said that some of the items will require town board approval because of cost. “This may seem like overkill,” he said, “but it is probably the norm for the more professional departments.”
Husemann added that the town “will obviously coordinate this with the SBI, but we feel that this would not interfere with their investigation.” Also, he warned: “This will be a very lengthy process.”
The town manager also told commissioners that the finance department will work with the police department “to assure the proper recording of all revenues and expenditures related to the property room and the state and federal drug forfeiture accounts. This would also address the disposal of future property no longer needed for evidence.”
Finally, Husemann said he is interested in seeking accreditation of the Mooresville Police Department through CALEA (Commission on Accreditation for Law Enforcement Agencies, Inc.). “While this is an expensive and time consuming process, it would have avoided a lot of the problems that we are facing today,” Husemann said. “It would also help re-establish the credibility to the department.”
Tuesday, September 16, 2008
Second Cops for Kids accounting firm still not hired
The Town of Mooresville has still not hired its second accounting firm for the Cops for Kids audit. And as of Friday, the town employee who commissioners put in charge of the audit – Finance Director Maia Setzer – will be out of the office for another two weeks.
The Town of Mooresville announced the investigations into the police chief’s Cops for Kids fund on July 7. Almost three weeks later, on July 31, Setzer said Carolina Financial Investigations would be conducting the first financial investigation, but that the second firm – needed to corroborate the findings of the first firm – “has not been contracted as I have been out of the office this week.”
Six days later, on Wednesday, Aug. 6, the Report asked Setzer about background information on Carolina Financial Investigations, because the company cannot be found using a simple Internet search, and it is not registered with the N.C. Secretary of State. Setzer responded that same day: “I’m checking my email from home and do not have (Carolina Financial Investigation’s) file with me. I hope to be back in my office on Friday (Aug. 8). If I don't get back to the office then, I will not be back until Monday, Aug. 18. I will respond as soon as possible.”
On Tuesday, Sept. 2, Setzer told commissioners in their town board meeting: “I have been out of the office for 14 work days. I have not been able to get on top of this due to scheduling issues.”
On Wednesday, Sept. 3, the Report attempted again to obtain information from Setzer about Carolina Financial Investigations. Setzer responded five days later, on Monday, Sept. 8: “I’m sorry – I’ve been out of the office again and will be gone again (until Friday afternoon) (Aug. 12) in just a little bit.”
However, she said, “(Carolina Financial Investigations) was recommended by Mr. (Ken) Andrews (the town’s internal investigator for Cops for Kids) as one he had worked with before and who had experience with financial investigations. I don’t have a web site for the firm. We spoke by phone and in person prior to executing the letter of engagement.”
In an e-mail yesterday, Sept. 15, Setzer told the Report that after this Thursday, “I’m not back in my office until Sept 29….”
As for the Cops for Kids audit, Setzer said, “I have a draft report from the first investigation and have been trying to get through it. I have not gotten through it all yet. I don’t know if the second firm has received the revised letter from the Town or not…I’ve been out of my office and so has the partner I was working with at that firm…”
That firm is Greer & Walker, LLC. The town board, at its regular monthly meeting on Sept. 2, voted to modify the letter of engagement and present it to Greer & Walker one last time. If the firm did not agree to the terms in the letter, the board authorized Setzer to contact an alternate firm on Sept. 3. (See http://thegattonreport.blogspot.com/2008/09/cops-for-kids-second-accounting-firm.html)
When asked who has been heading up the town’s work on the audits while Setzer has been out of the office – or if the work has been put on hold each time she’s been out – Setzer responded: “We play voice mail tag when I’m out of the office. I don’t know that anything has been put ‘on hold.’”
Mayor Bill Thunberg, upon announcing the Cops for Kids investigations at the July 7 town board meeting, said that the board “is adamant that questions be answered and that this matter resolved in a timely fashion to preserve the public trust.” In an e-mail to the Mooresville Tribune the following day, Thunberg said that “the board has directed that Setzer take the steps outlined by the interim Town Manager to the Board last night in an expeditious manner.”
But more than two months later, the second accounting firm has not yet been hired. When asked yesterday if he considers this “expeditious” – and whether the audits and the public trust are a priority for the Town of Mooresville, as he suggested that they would be – Thunberg did not respond. Instead, he forwarded the questions to Town Attorney Steve Gambill.
“The Mayor forwarded your questions to me about the audit since I was asked by the Board to take questions about this matter,” Gambill stated in an e-mail to the Report and copied to Thunberg, Town Manager Steve Husemann, Setzer and town commissioners.
“The engagement letter has been finalized with Greer & Walker in Charlotte to perform this audit,” Gambill said, adding that he anticipates the letter being mailed out “within the next day or so.”
“From where I sit,” Gambill said, “whether something is expeditiously handled is something that can be subject to several factors. In this particular case, there was language in the agreement that I advised against and thus the back and forth between the accounting firm and the town to draft an agreement suitable to both parties. Unfortunately, such discussions take time but I believe we can now move forward with this firm.”
Commissioner Miles Atkins fired back an e-mail to Gambill, asking: “Am I understanding you to say that the letter has not gone out yet and we don't know if or when this firm will accept the town's terms for the engagement letter? Amazing!”
Atkins said he believes that “the spirit of our discussion on Sept. 2” and “the desire of most commissioners” was that “we would engage another firm in discussion on Sept. 3 so we had an alternative and a firm that may be more responsive and compatible to work with.”
Atkins went on to state that he does not understand the rationale “for not at least exploring another resource.” For the town “to use this as an excuse,” he added, “is lame at best.”
“All this does is gives the public the perception that we are holding up the process and quite frankly we are by pursuing this current course.”
Gambill responded: “My involvement has been only in drafting the agreement and I cannot speak to any issues other than the drafting of the agreement. I am sorry that I cannot supply such information but I have not been involved beyond the drafting of the agreement.”
The Town of Mooresville announced the investigations into the police chief’s Cops for Kids fund on July 7. Almost three weeks later, on July 31, Setzer said Carolina Financial Investigations would be conducting the first financial investigation, but that the second firm – needed to corroborate the findings of the first firm – “has not been contracted as I have been out of the office this week.”
Six days later, on Wednesday, Aug. 6, the Report asked Setzer about background information on Carolina Financial Investigations, because the company cannot be found using a simple Internet search, and it is not registered with the N.C. Secretary of State. Setzer responded that same day: “I’m checking my email from home and do not have (Carolina Financial Investigation’s) file with me. I hope to be back in my office on Friday (Aug. 8). If I don't get back to the office then, I will not be back until Monday, Aug. 18. I will respond as soon as possible.”
On Tuesday, Sept. 2, Setzer told commissioners in their town board meeting: “I have been out of the office for 14 work days. I have not been able to get on top of this due to scheduling issues.”
On Wednesday, Sept. 3, the Report attempted again to obtain information from Setzer about Carolina Financial Investigations. Setzer responded five days later, on Monday, Sept. 8: “I’m sorry – I’ve been out of the office again and will be gone again (until Friday afternoon) (Aug. 12) in just a little bit.”
However, she said, “(Carolina Financial Investigations) was recommended by Mr. (Ken) Andrews (the town’s internal investigator for Cops for Kids) as one he had worked with before and who had experience with financial investigations. I don’t have a web site for the firm. We spoke by phone and in person prior to executing the letter of engagement.”
In an e-mail yesterday, Sept. 15, Setzer told the Report that after this Thursday, “I’m not back in my office until Sept 29….”
As for the Cops for Kids audit, Setzer said, “I have a draft report from the first investigation and have been trying to get through it. I have not gotten through it all yet. I don’t know if the second firm has received the revised letter from the Town or not…I’ve been out of my office and so has the partner I was working with at that firm…”
That firm is Greer & Walker, LLC. The town board, at its regular monthly meeting on Sept. 2, voted to modify the letter of engagement and present it to Greer & Walker one last time. If the firm did not agree to the terms in the letter, the board authorized Setzer to contact an alternate firm on Sept. 3. (See http://thegattonreport.blogspot.com/2008/09/cops-for-kids-second-accounting-firm.html)
When asked who has been heading up the town’s work on the audits while Setzer has been out of the office – or if the work has been put on hold each time she’s been out – Setzer responded: “We play voice mail tag when I’m out of the office. I don’t know that anything has been put ‘on hold.’”
Mayor Bill Thunberg, upon announcing the Cops for Kids investigations at the July 7 town board meeting, said that the board “is adamant that questions be answered and that this matter resolved in a timely fashion to preserve the public trust.” In an e-mail to the Mooresville Tribune the following day, Thunberg said that “the board has directed that Setzer take the steps outlined by the interim Town Manager to the Board last night in an expeditious manner.”
But more than two months later, the second accounting firm has not yet been hired. When asked yesterday if he considers this “expeditious” – and whether the audits and the public trust are a priority for the Town of Mooresville, as he suggested that they would be – Thunberg did not respond. Instead, he forwarded the questions to Town Attorney Steve Gambill.
“The Mayor forwarded your questions to me about the audit since I was asked by the Board to take questions about this matter,” Gambill stated in an e-mail to the Report and copied to Thunberg, Town Manager Steve Husemann, Setzer and town commissioners.
“The engagement letter has been finalized with Greer & Walker in Charlotte to perform this audit,” Gambill said, adding that he anticipates the letter being mailed out “within the next day or so.”
“From where I sit,” Gambill said, “whether something is expeditiously handled is something that can be subject to several factors. In this particular case, there was language in the agreement that I advised against and thus the back and forth between the accounting firm and the town to draft an agreement suitable to both parties. Unfortunately, such discussions take time but I believe we can now move forward with this firm.”
Commissioner Miles Atkins fired back an e-mail to Gambill, asking: “Am I understanding you to say that the letter has not gone out yet and we don't know if or when this firm will accept the town's terms for the engagement letter? Amazing!”
Atkins said he believes that “the spirit of our discussion on Sept. 2” and “the desire of most commissioners” was that “we would engage another firm in discussion on Sept. 3 so we had an alternative and a firm that may be more responsive and compatible to work with.”
Atkins went on to state that he does not understand the rationale “for not at least exploring another resource.” For the town “to use this as an excuse,” he added, “is lame at best.”
“All this does is gives the public the perception that we are holding up the process and quite frankly we are by pursuing this current course.”
Gambill responded: “My involvement has been only in drafting the agreement and I cannot speak to any issues other than the drafting of the agreement. I am sorry that I cannot supply such information but I have not been involved beyond the drafting of the agreement.”
Monday, September 8, 2008
Town's ethics code to get a second look
The Town of Mooresville adopted a Code of Ethics in 2005, but commissioners at the time failed to give the policy teeth.
That could soon change.
Mooresville’s new town manager, Steve Husemann, plans to revisit the town’s Code of Ethics, and at least two town commissioners hope to pick up where the 2005 town board left off.
Ironically, Miles Atkins – who was not a commissioner at the time – researched and introduced the idea of an ethics code to the town board in 2005, when commissioners – specifically Mitch Abraham and Alice Lee – were facing public scrutiny for their selection of engineering firm CH2M Hill to design the town’s multi-million wastewater treatment plant expansion. Abraham and Lee spearheaded the town’s choice of CH2M Hill but did not disclose that they were close personal friends with an official of the firm and attended his same church. (See http://thegattonreport.blogspot.com/2008/03/whats-that-old-adage-about-rats.html)
The town board adopted the Code of Ethics on June 6, 2005. It also developed an "ethics advisory committee" to review the code and provide input and recommendations to the town board regarding the formation of a formal committee to oversee the code’s enforcement. Atkins and Chris Carney -- also not yet elected to the town board -- were appointed to the advisory committee; Atkins was appointed by Danny Beaver, who Atkins would eventually challenge and defeat in the 2007 at-large race, and Carney was appointed by Mitchell Mack, whose Ward 4 seat Carney won in 2005 when Mack chose not to seek re-election.
The advisory committee met four times over the course of four months. But when the group brought its recommendations to Mooresville’s town board in January 2006, commissioners took no action, essentially killing the advisory committee’s work. It also meant that the Code of Ethics had no approved procedures in place to respond to citizen complaints against elected officials.
To read the ethics advisory committee’s findings, click on the documents below:
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Last week, Mayor Bill Thunberg asked Husemann to revisit the policy – along with all the other town policies, procedures and operations.
But Carney quickly zeroed in on the ethics code, saying that elected officials from other areas have found themselves in “inappropriate situations” and “that doesn’t leave a good taste in the mouth of the citizens.”
The Code of Ethics addresses several topics, including conflicts of interest; duties to recuse, disclose, and cooperate; unfair use of town property; misuse of confidential information; improper gifts and fair and equal treatment.
“So much work was done” by a “very non-partisan ethics advisory committee” in 2005, Carney said last week. “A lot of the footwork has been done, and we need to take the recommendations of that committee and put (the Code of Ethics) in action.
“There was a unanimous recommendation from the committee to form a vetting system for ethical complaints against an elected official,” Carney added. “Everybody agreed to the premise and the idea of it. There’s no reason in the world not to have it.”
Carney said currently in North Carolina, “there’s no system, short of a felony, of removing unethical elected officials.”
If an elected official is found to have conducted himself unethically, said Carney, “Citizens shouldn’t have to hold their nose, waiting for the next election cycle. There certainly needs to be something done about that.”
Atkins said that the town’s adopted Code of Ethics remains in effect. However, he said, “If someone filed a complaint today, they can reference a code, but there’s not a formalized process in place even though (the ethics advisory committee) recommended it.”
He said he expects that Husemann and commissioners will review the Code of Ethics and the advisory committee’s findings and, sometime in the near future, vote on virtually the same recommendations that were presented to the town board in January 2006.
“When there is lack of confidence or mistrust, this will be a tool for the citizens,” Atkins said.
That could soon change.
Mooresville’s new town manager, Steve Husemann, plans to revisit the town’s Code of Ethics, and at least two town commissioners hope to pick up where the 2005 town board left off.
Ironically, Miles Atkins – who was not a commissioner at the time – researched and introduced the idea of an ethics code to the town board in 2005, when commissioners – specifically Mitch Abraham and Alice Lee – were facing public scrutiny for their selection of engineering firm CH2M Hill to design the town’s multi-million wastewater treatment plant expansion. Abraham and Lee spearheaded the town’s choice of CH2M Hill but did not disclose that they were close personal friends with an official of the firm and attended his same church. (See http://thegattonreport.blogspot.com/2008/03/whats-that-old-adage-about-rats.html)
The town board adopted the Code of Ethics on June 6, 2005. It also developed an "ethics advisory committee" to review the code and provide input and recommendations to the town board regarding the formation of a formal committee to oversee the code’s enforcement. Atkins and Chris Carney -- also not yet elected to the town board -- were appointed to the advisory committee; Atkins was appointed by Danny Beaver, who Atkins would eventually challenge and defeat in the 2007 at-large race, and Carney was appointed by Mitchell Mack, whose Ward 4 seat Carney won in 2005 when Mack chose not to seek re-election.
The advisory committee met four times over the course of four months. But when the group brought its recommendations to Mooresville’s town board in January 2006, commissioners took no action, essentially killing the advisory committee’s work. It also meant that the Code of Ethics had no approved procedures in place to respond to citizen complaints against elected officials.
To read the ethics advisory committee’s findings, click on the documents below:
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+(Large).jpg)
+(Large).jpg)
Last week, Mayor Bill Thunberg asked Husemann to revisit the policy – along with all the other town policies, procedures and operations.
But Carney quickly zeroed in on the ethics code, saying that elected officials from other areas have found themselves in “inappropriate situations” and “that doesn’t leave a good taste in the mouth of the citizens.”
The Code of Ethics addresses several topics, including conflicts of interest; duties to recuse, disclose, and cooperate; unfair use of town property; misuse of confidential information; improper gifts and fair and equal treatment.
“So much work was done” by a “very non-partisan ethics advisory committee” in 2005, Carney said last week. “A lot of the footwork has been done, and we need to take the recommendations of that committee and put (the Code of Ethics) in action.
“There was a unanimous recommendation from the committee to form a vetting system for ethical complaints against an elected official,” Carney added. “Everybody agreed to the premise and the idea of it. There’s no reason in the world not to have it.”
Carney said currently in North Carolina, “there’s no system, short of a felony, of removing unethical elected officials.”
If an elected official is found to have conducted himself unethically, said Carney, “Citizens shouldn’t have to hold their nose, waiting for the next election cycle. There certainly needs to be something done about that.”
Atkins said that the town’s adopted Code of Ethics remains in effect. However, he said, “If someone filed a complaint today, they can reference a code, but there’s not a formalized process in place even though (the ethics advisory committee) recommended it.”
He said he expects that Husemann and commissioners will review the Code of Ethics and the advisory committee’s findings and, sometime in the near future, vote on virtually the same recommendations that were presented to the town board in January 2006.
“When there is lack of confidence or mistrust, this will be a tool for the citizens,” Atkins said.
Wednesday, September 3, 2008
Cops for Kids: second accounting firm has not been hired
Nearly two months after the Town of Mooresville ordered two audits of the Cops for Kids financial records, the second accounting firm has not been hired.
The town needs to hire a second firm to corroborate the findings of the first firm, Carolina Financial Investigations, which is in the process of reviewing the Cops for Kids financial documents.
The town has apparently been wrangling since July with a second company, Greer & Walker LLP, over language in a “letter of engagement,” which basically serves as a contract between the firm and the town. “We’ve been trying to obtain and negotiate a letter of engagement since mid-July,” Town Finance Director Maia Setzer told the town board in its regular monthly meeting last night.
Commissioner Chris Carney said if the letter doesn’t benefit the Town of Mooresville, “send it back, and politely tell them we’re going to move on about our business.”
Added Commissioner Miles Atkins: “We’re trying to give this firm business. If they’re taking this long at the beginning (of the process), what’s it going to be like to work with them?”
Setzer took partial responsibility for the delay. “I have been out of the office for 14 work days,” she said. “I have not been able to get on top of this due to scheduling issues.”
Setzer had told town commissioners previously that “the portions of the investigation requiring Town staff participation has been slowed … due to long-ago planned vacations.”
The town needs firms that specialize in "forensic accounting," Setzer said, adding that such firms are rare.
“Essentially, they’re looking for things that aren’t there,” Setzer said, including "transactions that have been hidden, if they’ve been hidden, or not properly documented."
She reminded commissioners that the Cops for Kids account “is not an account that the town has a right to see.”
Commissioners voted 5-1, with Commissioner Frank Rader dissenting, to modify the letter of engagement and present it to Greer & Walker one last time. If the firm did not agree to the terms in the letter, the board authorized Setzer to contact an alternate firm today.
Setzer said she already had another company in mind. “I can call the other company, but I wanted to get this one solved first,” she said.
It’s unclear what the cost to the town will be for the audits. Greer & Walker asked for a $10,000 retainer, but the town will apparently not know the final tally for the audits until the firms complete their work. “We just don’t know,” said Rader. “Once we start, we can’t stop.”
Carney said it’s a price worth paying. Though the town “will not be any financially better off at the end of this study,” he said, the town should not set limits on actions it takes “to restore public trust” … even though it might come “at a hefty, hefty price.”
Commissioner Mitch Abraham asked town staff to provide commissioners within the next few weeks with a list of “what’s been spent to keep the public up-to-date.” He said he would like for staff time to be included in the breakdown of expenses.
The town needs to hire a second firm to corroborate the findings of the first firm, Carolina Financial Investigations, which is in the process of reviewing the Cops for Kids financial documents.
The town has apparently been wrangling since July with a second company, Greer & Walker LLP, over language in a “letter of engagement,” which basically serves as a contract between the firm and the town. “We’ve been trying to obtain and negotiate a letter of engagement since mid-July,” Town Finance Director Maia Setzer told the town board in its regular monthly meeting last night.
Commissioner Chris Carney said if the letter doesn’t benefit the Town of Mooresville, “send it back, and politely tell them we’re going to move on about our business.”
Added Commissioner Miles Atkins: “We’re trying to give this firm business. If they’re taking this long at the beginning (of the process), what’s it going to be like to work with them?”
Setzer took partial responsibility for the delay. “I have been out of the office for 14 work days,” she said. “I have not been able to get on top of this due to scheduling issues.”
Setzer had told town commissioners previously that “the portions of the investigation requiring Town staff participation has been slowed … due to long-ago planned vacations.”
The town needs firms that specialize in "forensic accounting," Setzer said, adding that such firms are rare.
“Essentially, they’re looking for things that aren’t there,” Setzer said, including "transactions that have been hidden, if they’ve been hidden, or not properly documented."
She reminded commissioners that the Cops for Kids account “is not an account that the town has a right to see.”
Commissioners voted 5-1, with Commissioner Frank Rader dissenting, to modify the letter of engagement and present it to Greer & Walker one last time. If the firm did not agree to the terms in the letter, the board authorized Setzer to contact an alternate firm today.
Setzer said she already had another company in mind. “I can call the other company, but I wanted to get this one solved first,” she said.
It’s unclear what the cost to the town will be for the audits. Greer & Walker asked for a $10,000 retainer, but the town will apparently not know the final tally for the audits until the firms complete their work. “We just don’t know,” said Rader. “Once we start, we can’t stop.”
Carney said it’s a price worth paying. Though the town “will not be any financially better off at the end of this study,” he said, the town should not set limits on actions it takes “to restore public trust” … even though it might come “at a hefty, hefty price.”
Commissioner Mitch Abraham asked town staff to provide commissioners within the next few weeks with a list of “what’s been spent to keep the public up-to-date.” He said he would like for staff time to be included in the breakdown of expenses.
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