Town of Amherst
Audit shows 'positive performance' for 2006
by JESSICA L. FINCH Associate Editor

Throughout 2006, Supervisor Satish Mohan had great concerns about a budget deficit, but when all was said and done, the Town of Amherst came out of last year in good standing.

Tom Malecki of Drescher and Malecki, LLP, presented the firm's findings from the performance review of the town's handling of its finances.

"The town had a positive performance," Malecki said. "There were more operating revenues than operating expenditures."

The general fund was short about $767,000, less than 1 percent of the total budget.

"That is not a big number; budgets are going to be off from time to time, and this is better than expected," he said.

The town also had $1.98 million left from operations, leaving the overall budget in the positive.

Council Member Bill Kindel, who claimed throughout 2006 the budget was not in a deficit, was pleased with the audit report.

"There was no shortfall. A $2 million surplus is a far cry from a $4 million deficit," he said. "It's like one pocket is full of the money (and) the other isn't, but they are both your pockets."

Malecki also addressed material weaknesses that he discovered, although, he said many of those issues have apparently been addressed by Comptroller Frank Belliotti since Malecki began his review.

Those include, bank reconciliation, segregation of duties, outstanding checks, and transfers that are untimely.

"Having three comptrollers in a year is two too many," Belliotti said. "I have addressed most of the issues with the staff."

The two main issues that concerned Mohan during 2006 were utilities and health insurance. Health insurance cost $9.1 million, with $7.5 million budgeted, and utilities, $5.2 million, with $3.4 million budgeted.

Malecki added that when doing a review, his firm looks at the overall picture of the town.

"Some funds need money one year, some another year. In 2006 it was a pretty successful year with $1.9 million plus," he said.