CURWENSVILLE – One month after learning about a previously unknown bank account Curwensville Borough Council received an audit report on that account.
After hearing about the recently discovered $150,000 council decided to audit the minutes of meetings from Oct. 2007 to present to check on a transaction that had occurred.
It was revealed at that meeting that the $150,000 to be the remainder of the $200,000 tax anticipation note the borough took out in late 2007/early 2008 and paid off in August/September 2008.
The account, council learned, was opened on Feb. 2, 2008.
Council President Mark Curulla read the audit report from Walter Hopkins & Associates aloud during Monday’s council meeting.
According to the report on Jan. 7, 2008, council authorized Solicitor Larry Seaman to start paperwork on a $200,000 tax anticipation note. At a special meeting on Feb. 1, 2008, council accepted a quote for a $200,000 TAN from First Commonwealth Bank at an interest rate of 3.7 percent. On Feb. 19, 2008 proceeds of the $200,000 TAN were deposited into a non-interest bearing checking account at First Commonwealth Bank.
On March 14, 2008 a check from the First Commonwealth Bank account was included in a deposit to the general fund account at Northwest Savings Bank in the amount of $50,000.
From March 12, 2008 through Sept. 3, 2008 a total of $2,555.14 was paid on interest from the TAN. During that time period council also paid off the TAN.
According to the October 2008 council meeting list the TAN had balance of $0.
The audit report notes:
“It appears that the First Commonwealth Bank account was erroneously omitted from the monthly financial reports given Council. Apparently the establishment of a checking account when the Tax Anticipation Note was deposited was not the procedure normally followed and the balance in that account was omitted from the monthly Council financial reports.”
The report also notes that there was “no apparent misappropriation of Borough funds.”
Council member Sam Ettaro, on speaker phone, asked whose fault the accounting error was.
“We’re not here to point fingers,” said Curulla, who added that council needed to move forward.
“At what point are people held accountable,” asked Ettaro. “It’s a matter of being open with the public.”
Council member Holly Komonczi recommended that as part of their regular business, council approve both the bills and the treasurer’s report. She stated that she believed this would hold council members accountable for business that was conducted through the borough by approving the treasurer’s report. The motion was seconded by Julie Girardi and passed unanimously.
