Office of the State Comptroller
Division of Local Government & School of Accounting
12th Floor
110 State Street
Albany, New York 12236
Attention: Mr. David Hancox

Office of the State Comptroller
Chief Examiner, Mr. Chris Ellis
Albany Regional Office
22 Computer Drive West
Albany, New York 12205

Re: Request for Audit and Review of Financial Records
Of the Town of Milan for year 2008

Dear Mr. Hancox and Mr. Ellis:

We are Town Board Members in the Town of Milan. We are requesting that the Office of the State Comptroller review and audit the books and financial records of the Town for fiscal year 2008. This request is made for the following reasons:

1. The December 2008 financial report has not been finalized. Numerous revisions have been offered but they are inaccurate, incomplete and lack financial detail sufficient for review and analysis. Monthly reports were inconsistently provided over the course of 2008, and were frequently revised. October and November reports were revised in December and no final December report has been accepted by the Board to date.
2. The Supervisor has failed to produce for the Boards’ review a year End Financial Statement for 2008 as required by law. When asked why it was not completed the Supervisor indicated he did not know one had to be done.
3. In spite of repeated requests, and a resolution approved by the Town Board, the Supervisor has failed to produce source and detail documentation for the town’s funds.
4. Transfers made by Board resolution between budget lines have not been recorded on the books.
5. Transfers to the General Fund have been made incorrectly and from the wrong funds.
6. The Supervisor has made purchases without board consent and without following Town bidding procedures.
7. The Supervisor has paid bills without board approval.
8. The Supervisor has made purchases with Grant funds, though the Grant funds were never received.
9. Escrow accounts have been neglected, information sought has not been provided.
10. A June check received by the town in the sum of $3,006.25 (donation) has not been accounted for and not included in subsequent reports though information regarding the check has been requested.
11. The Supervisor has approved attorney fees for political advice.
12. There are numerous payroll irregularities.

The Supervisor has acknowledged on numerous occasions his lack of knowledge and understanding of the Town’s QuickBooks accounting program. The Town during 2008 employed two CPA firms with Municipal accounting expertise both resigned. The Supervisor hired a Bookkeeper with no municipal accounting experience and limited understanding of QuickBooks. In addition the Supervisor has purchased another accounting system, Fund EZ (designed for not-for-profit organizations). The Supervisor has admitted publicly neither he nor his bookkeeper have any knowledge of this program or how to use it, and yet he is attempting to implement the program.

For the foregoing reasons (not an inclusive list) we are asking for your assistance. We do not have any confidence in the Supervisor as the CFO of the Town. To continue in this fashion for another year, we believe, would put the town at further risk of financial instability. We ask you to assist the town in unraveling the finances of 2008 and help us move forward by setting the ground work for good financial accounting for the Town of Milan.

If we can be of assistance please use contact phone numbers below.

Very truly yours,

Diane May Ross Williams
845-758-3558 845-758-6344

pc: Richard Barrett, Supervisor
David Byrne, Town Board Member
Roberta Egan, Town Board Member
Catherine Gill, Town Clerk