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04-08-08 Investigation & Audit Committee
INVESTIGATION AND AUDIT COMMITTEE

TOWN COUNCIL MAJORITY OFFICE

APRIL 8, 2008

PRESENT         William P. Horan, Jr., Chair, Councillors Barbara Rossi and Donald H.
Pitkin

ALSO
PRESENT         Michael Walsh, Finance Director


CALL TO ORDER

Bill Horan, Chair, called the meeting to order at 5:55 p.m.


APPROVAL OF MINUTES

December 11, 2007 Meeting

MOTION  By Don Pitkin
seconded by Barbara Rossi
to approve the minutes of the December 11, 2007 meeting.
Motion carried 3/0.

OPPORTUNITY FOR RESIDENTS TO SPEAK  

None

NEW BUSINESS

Selection of Auditor for Auditing Services for the Town of East Hartford

Finance Director Mike Walsh gave a brief overview of the Request for Proposal (RFP) process for selecting the Town auditor.  Three bids were received pursuant to the RFP, but only two companies met the requirements of the RFP.  The remaining two companies are Blum Shapiro (which absorbed Scully & Wolf, the town’s present auditor), and Kostin, Ruffkess.  The bid by Blum Shapiro was slightly lower, and Blum Shapiro provides auditing services for about 90 towns, while Kostin, Ruffkess provides auditing services to about 30 towns.

Chair Horan noted that Blum Shapiro employs the auditors from Scully & Wolf that have been auditing East Hartford for many years.

MOTION  By Barbara Rossi
                seconded by Don Pitkin
                to accept the proposal of Blum Shapiro to provide
auditing services to the Town of East Hartford for five
one-year contracts; fiscal years ending June 30, 2008,
June 30, 2009, June 30, 2010, June 30, 2011 and
June 30, 2012 contingent upon approval of the Town Council
for each year.
Motion carried 3/0.

Appointment of Auditor for Fiscal Year 2007-2008

MOTION  By Barbara Rossi
                seconded by Don Pitkin
                to recommend that the Town Council appoint Blum Shapiro
as the auditors for fiscal year 2007-2008 to perform required financial
                audits consistent with the most recent proposal of $60,900.
                Motion carried 3/0.
                                
Non-compliance with Town Charter and Applicable State Statutes

Councillor Don Pitkin provided a memorandum dated March 12, 2008 regarding “Treasurer’s Records” with attachments.  Councillor Pitkin gave a brief overview of his issues with record keeping required of the Town Treasurer by Town Charter and by State Statutes.  Finance Director Mike Walsh noted that the Town Treasurer is a signatory on the Town bank accounts, so technically the Treasurer receives said funds.  Mr. Walsh also noted that the Finance Department’s records are records of the Town.  Councillor Pitkin believes that there are several discrepancies between the Town Charter and State Statutes including some non-gender neutral language in Section 3.10 of the Town Charter.  Councillor Pitkin also opined that the Finance Director, the Tax Collector, the Mayor and the Town Treasurer are not complying with their responsibilities under applicable Charter provisions and State Statutes.  A general discussion of the Town Charter and of the role of the Town Treasurer ensued.

Chair Horan will request that Corporation Council address the March 12, 2008 memorandum from Councillor Pitkin with some degree of specificity, and report back to the Investigation and Audit Committee with a report before the Committee meeting, and attend the next Committee meeting to participate with a discussion of the report.

No further action taken at this time.


ADJOURNMENT

MOTION         By Don Pitkin
                      seconded by Barbara Rossi
                      to adjourn at 6:37 p.m.
                      Motion carried 3/0.


C:  Town Council
     Mayor Currey
     Michael Walsh, Finance Director
     Scott Chadwick, Corporation Counsel
     Michael LeBlanc, Blum Shapiro