What’s going on?
Something perplexing is going on in Connellsville. Officials there voted last month to create two new bank accounts, and, for whatever reason, decided to circumvent the standard method of executing checks and other accounting typically performed by the elected treasurer and controller. Last month, Mayor Judy Reed along with council members Terry Bodes and David McIntire supported a measure to create two new bank accounts for revenue generated at the city-owned refreshment stand and the landlord registration and rental property inspection.
However, the issue with the resolution is that it also authorized Bodes, who is the director of accounts and finance, and either Reed or city clerk Antoinette Tesauro to provide a second signature for any checks written on the accounts. The action is contrary to the current city practice for in-place accounts that call for three signatures including the director of accounts and finance, city treasurer and city controller.
Obviously, city Treasurer Judy Keller and city Controller Jean Wrote have criticized the council action. Officials in numerous nearby municipalities have stressed the move is in violation of the Third Class City Code and opens the council up to undue scrutiny – and possibly trouble.
Connellsville City solicitor Mitch Mitchell said that he has discussed the matter with officials after the signature and accountability questions were raised and has advised them that in his opinion the Third Class City Code should be followed.
“If there is confusion here, then you need to fall back on the Third Class City Code,” he said. “After doing some reading, it appears that all city financial business has to go through these three officials.”
For our part, we can’t figure out what reasoning would support changing the authorization and accounting rules for these two city accounts. For their part, Bodes, McIntire and Reed haven’t offered any, either.
Since Bodes and Reed both voted for the resolution and will be two-thirds of the signatures needed for checks, the move exposes the council to the perception that something funny is going on with the money, since they sought to circumvent the standard method of checks and balances.
The only consolation for city residents is that Reed’s term expires at the end of the year, and the policy can be undone when her replacement takes office. But that still means the policy will be in effect for five months, plenty of time for all types of problems to develop.
We cannot urge the council strongly enough to amend the July action during their Aug. 20 meeting so that it conforms to the Third Class City Code – and common sense.