Ford City Sewage Authority to Research Fraud Audit

Ford City Borough Municipal Sewage Disposal Authority Member Ron Dillard (right)made a motion that the Authority look into conducting a fraud audit during a public meeting held last night.

by Nathan Lasher

Following the arrest of former Ford City Borough Municipal Sewage Disposal Authority (FCBMSDA) President Tom Shaffer last Thursday on charges that he had stolen $26,000 from State Representative Jeff Pyle’s campaign checkbook, Authority Member Ron Dillard asked that a fraud audit be done for the FCBMSDA during a public meeting held last night.

“I would like to make a motion in lieu of other circumstances that involve our past President,” said Dillard. “From the time that he entered into his position as President with financial signature ability to the time of resignation, I would like to have a fraud audit conducted, and I would like the accounting firm of Joe Estermyer and Sharshan from Vandergrift, it’s on the other side of Leechburg, to conduct this. They’ve done other fraud investigations.”

The Authority Solicitor, Frank Wolfe, voiced that the Authority should know what the audit would cost before taking action. He then asked if Dillard had contacted Estermyer and Sharshan previously.

“I have not contacted them without Board approval,” said Dillard. “I’m asking the President to contact him. He can bring the information back to the Board, and then we can approve it according to cost and the reasoning.”

“I agree you have sound reasoning on it,” replied Wolfe. “It’s a matter of getting in contact with them. They will submit a written proposal. It shouldn’t be that costly.”

Engineer David Nichols pointed out that the audit would have to begin with January 1, 2010 and run through October 31, 2010 since the most recent audit went through December 31, 2009. This would give the new auditors a starting point.

Wolfe also suggested that the Board contact their current auditor for an opinion as to how go about the fraud investigation.

Authority Member Paul Harmon voiced that an audit might not be necessary. “I take it that it’s like the Borough where there is no cash and it’s all checks,” said Harmon. “I think all Tom and I and him did was sign checks. Carol would pretty much know if there would be something missing.”

“We don’t want anybody on the local scene that was involved in this,” replied Dillard. “She was handling checks. We want an outside, independent fraud investigation by outside sources to report back to us their findings. We’re not saying there was fraud, but I said in lieu of the circumstances this has to be done.”

At the end of the discussion, Dillard made a motion for Acting President Chris Zionkowski to do the ground work of contacting Joe Estermyer and Sharshan as well as the Board’s current auditor. Zionkowski will bring the information back to the Board for an emergency meeting in order to review the information and to vote on the issue. The motion was passed.

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categories Ford City Borough | nlasher November 12, 2010

16 Comments

  • By JohnK, November 12, 2010 @ 6:54 AM

    We’ll take it slow for you Mr. Harmon. All Shaffer did with Pyle was sign a few checks too. They just weren’t his to sign.
    If you have nothing to hide you should have no problem with an audit.

  • By mutchka, November 12, 2010 @ 8:10 AM

    How did we know who would wonder if they need an audit?

  • By Mike Fichthorn, November 12, 2010 @ 8:35 AM

    Well Huey has been to jail, Dewey doesn’t think there needs to be an audit. Louie…speak up…We’re waiting for something intelligent.

  • By Viper972, November 12, 2010 @ 8:47 AM

    Always follow the money trail. It will lead you to a clean path or a Dirty one.

  • By devitt, November 12, 2010 @ 8:49 AM

    It sounds like blind loyalty is getting in the way of rational thinking.

  • By newvoice, November 12, 2010 @ 9:12 AM

    Audits a great Idea. Let’s see what purchases were made without board authorization. Buyiny a $1200.00 computer.(where is it and who authorized that purchase.Let’s see who billed the Sewage Autority over $2000.00 because it went beyond volunteering. YES AUDIT!

  • By newvoice, November 12, 2010 @ 9:15 AM

    Let’s see who signed those checks!

  • By devitt, November 12, 2010 @ 10:59 AM

    newvoice,

    I am in agreement with you. We definitely need an audit for all those things that you mentioned and any other things that it may discover.

    There is nothing wrong with doing these audits. I think the citizens would be in overwhelming agreement to pay for these audits.

    Next stop for the auditors…The Ford Street Project.

    It is about time things begin to get cleaned up. The audits will set the citizens at ease. There is a good chance that the audits will turn up nothing but at least it will remove the doubt that any improprieties occurred.

  • By newvoice, November 12, 2010 @ 1:35 PM

    Devitt..Again we agree… A total audit of the Ford Street Project should be taken….I checked some legal journal records..Interesting June 4, 2009………..Ford City Borough filed judgements for ford street against…Wilson,James L. $1,496.88—-Balla,Ryan D. $2,476.17——LMN Enterprises LLC $1,558.85—-Vergari,Louis;Hutchens,Cathy C.;Vergari,Albert $2,702.12…..Has this money been paid back…..If i’m not mistaken Lou Vergari is a Councilman?????

  • By cmon, November 12, 2010 @ 3:23 PM

    We the Ford City community need this audit, not only to move on but to flush out ANYBODY that has misled our community. We have had enough and are so very tired of being taken advantage of. So. yes if YOU have stolen or taken advantage of us or our families we will now be more vigilant, ask more questions and yes if we need to see your books to make us feel better ..OPEN THE BOOKS AND BE DONE WITH IT…the only reason for anybody to object to an audit is if there is something to hide… PERIOD!!

  • By devitt, November 12, 2010 @ 9:15 PM

    @newvoice - Like I said, the auditing of the Ford Street Project should be next. Let’s get this money paid up! We should also see if anything else is discovered. It has been how mnay months, since the electrical debacle was discussed and the citizens have heard nothing after that. It supposedly was going into litigation. Has it went into litigation?

    @comon - You are correct. This is definitely a time for the citizens to question everything. There are alot of question still out there dealing with borough business and finances.

    Speaking of lawsuits and litigation, has the number of lawsuits and the amount of money being expended on lawsuits dealing with the borough ever been disclosed to the citizens? How many were there in 2009? How many were there in 2010? What were the results? How much money was expended by the borough for this litigation and how much money was the borough rewarded or ordered to be paid out by the borough?

    This should not be part of an information obstacle course to retrieve this information. If a lawsuit is resolved, win or lose, it should be reported at a public meeting.

  • By newvoice, November 13, 2010 @ 7:44 AM

    Devitt…YOU ARE SO RIGHT!
    The people of Ford City need the real answers.
    Just some questions I have.

    Who has paid and continues to pay Businees Priviledge Tax? Who has Not?

    Who has Register their rental property correctly with the borough ? Who has not? The more SLUM LORDS the less your house is worth.

    Has the borough turned the people that have not paid to collection? Every dollar not collected cost (the people).

    Have all the organizations that the borough gives money to turned in audits and financial statements? (It the end the the year.)
    THE PEOPLE NEED ANSWERS…THE TRUE ANSWERS.

    Was Hertiage Days ever audited..Three years ago it was in debt….Two years after new re-organization, in the black?

    What really happen to the CDC? They say Shaffer destroyed it? How can one person do that?

    Ford Street Lights? This is what i heard (rumor) The borough held back money (don’t know how much) and did not pay the contractor because lights were not done right and something about brick are low somewhere? (That would be good business if true.) Just answer the question.

    I could go on I think you get my point.

  • By mutchka, November 13, 2010 @ 4:44 PM

    This is pathetic You have councilmen on an authority appointed by themselves. You have a solictor appointed by the towns leading criminal. You have a guy booted off the authority renominated by the same guys who kicked him off. The president of the authority thinks its ok to ride around and make noise with a 1/2 million dollar firetruck.The criminals right hand man is saying everythings wonderful.Hes a councilman that appointed himself to the sewage authority voted to kick off the new member. Im so confused. does anyone know whats going on or are we hiring a manager to be ringmaster for this circus. im going to church to pray for the town.

  • By John, November 13, 2010 @ 8:17 PM

    Whichever council/board members step forward and approved audits of funds will have the creditability of the citizens. Please prove that everything is ok and then move forward. Those that rejected any investigation should be removed ASAP, even attorneys. This is the citizens funds and the money isn’t theirs(council). It is time for the citizens to take back our town. If we don’t stand up, then we deserve what we get.

  • By devitt, November 14, 2010 @ 12:15 AM

    CDC and Heritage Days = Red herrings

    There are much bigger fish to fry. Allegedly the CDC is already under investigation. No action has been take. The workings of the CDC in the past have no impact on the here and now. It is only used as a means to divert attention away from the present issues.

    Heritage Days was a mess and is a mess. It may be time to look into folding it all together. Does council even have any financial oversight over the event?

    Landlord licensing and fees need generated and collected in a timely manner. The money from that collection should be accounted for in a seperate account and not mixed in with the general fund.

    Not sure on the issue of organizations who receive money from the borough and their audits. If it is a law or ordinace, it should be completed in a timely fashion.

    The whole Ford St. Project needs audited, including those who still owe money and the problems encountered with the contractors. This shoud be reported and updates should be given at public meetings.

    All lawsuits need to be reported to the public when they have received a ruling, positive or negative. How much is Ford City spending on these lawsuits? What was the pay out to the solicitor? This should be reported monthly or annually. What is the amount of the judgements? All of these things should be communicated at public meetings. People want to know how their money is handled and where it is being spent.

    The past appointments with this current council need to be examined thoroughly discussed and explained. Council cannot ask people to become member of committees and boards, when they have created some serious questions and diminshed the trust of the borough’s citizens. It does not work that way. You have to earn the trust of the citizens, and the complete opposite has occurred over the past year. The council has a lot of soul searching to do to regain the trust of the citizens.

  • By newvoice, November 14, 2010 @ 7:59 AM

    Prediction 2010/2011

    Real estate TAX increase (motion Ron Dillard)

    Water rate increase BIG (motion Ron Dillard)

    No new business (Failure to change Zoning Table)

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