Wednesday, June 28, 2017

Apparently for some people...

...desperate times calls for desperate measures!

As I have been blogging, Supervisor Tyksinski has repeatedly stated that the 2016 Financial Statements are not finished; even indicating that the document is still the property of D'Arcangelo.

So...being an inquisitive person, I began to why it might be that Tyksinski thought it would be proper to submit a resolution to the town board for approval of $1.2 million of bonding particularly when apparently he has no clue as to when he might have a copy of the final 2016 audited financial statements. Last night I found out...

Let me backtrack a bit...I'll try to give you the short version.

Under the Securities & Exchange Commission rules, Rule 15c2-12 Disclosure, the town is required to file a disclosure each year. This disclosure is used by municipal bond investors who want information regarding the financial status of a municipality.

There are two categories of financials that are required to be filed...Annual Financial Information and Operating Data; and Audited Financial Statements or Comprehensive Annual Financial Report (CAFR). Below, for clarification, are the definitions of each:
ANNUAL FINANCIAL INFORMATION
Financial information or operating data of the type included in the final official statement with respect to the issuer or an obligated person. Rule 15c2-12 obligates underwriters for primary offerings of municipal securities to ensure that the issuer or other obligated person has undertaken to provide such information or data on an annual basis.

AUDITED FINANCIAL STATEMENT
A financial statement that has been examined by an auditor and upon which the auditor has expressed or disclaimed an opinion.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
A report issued by a governmental entity that includes the entity’s audited statements for the fiscal year as well as other information about the entity. Such report must meet specific standards established by the Governmental Accounting Standards Board (GASB) in order to be considered a comprehensive annual financial report.
Until this year, New Hartford has always correctly filed financial information that is prepared with the assistance of Fiscal Advisors (Annual Financial Information) along with a copy of the town's most current audited financial statements (Audited Financial Statement) prepared by D'Arcangelo.

However, for some reason, two (2) days ago, on June 26, 2017, the financial information filed by the Town of New Hartford consisted of a copy of the 2016 Annual Updated Document (AUD) for both the Annual Financial Information and the Audited Financial Statement.

The AUD, which has to be filed with the NYS Comptroller's office each year, is NOT an audited document; it is NOT prepared by Fiscal Advisers or D'Arcangelo; and there is no assurance that any of the information contained in the document is correct. It is a document prepared by Dan Dreimiller.

In addition, once again for some reason, the report preparer signature line is left blank and Dan Dreimiller has signed the report certifying that he is the town's Chief Fiscal Officer.

Mr. Dreimiller was appointed by Tyksinski as Finance Director at the January 26, 2011 town board meeting.

Under Town Law 52, a town supervisor may "Appoint, and at pleasure remove, a director of finance who shall assist the supervisor in the preparation of the preliminary budget and the capital budget, if any, and in the administration of other fiscal operations of the town for which the supervisor is responsible".

Mr. Dreimiller can assist in preparing the report, however, General Municipal Law 30 and Town Law 52 read together make it very clear that the Chief Fiscal Officer of the town is the Supervisor and it is his duty to certify the state comptroller's report (AUD) "is TRUE and correct to the best of my knowledge and belief".

While Mr. Dreimiller may be a CPA in his private life, as the town's finance director, he has no business certifying that he is the Chief Fiscal Officer of the town.

It's quite funny actually because Dreimiller and Tyksinski got it right in 2012 when Dreimiller signed as the preparer and Tyksinski signed as Chief Fiscal Officer. However, every year since 2012, Tyksinski has not signed the annual report to the State Comptroller and Dreimiller has certified that he is the Chief Fiscal Officer...I wonder why that might be. Guess they can't proclaim they didn't know who was supposed to certify the report!

Reporting misleading financial information to the S.E.C. is serious stuff and not something that I would expect from an experienced town official and CPA such as Supervisor Tyksinski proclaims to be...unless he is getting desperate.



2 comments:

Anonymous said...

5 will get you ten he will have some bull$hit excuse for this.

Five-Oh said...

Book him, Danno.