29 Soulh Main Slreet

-iel
860.561.4000
P.O.Box272000 Fax860.521.9241
West Hartford, CT 06127-2000 blumshapiro.com
Blr-riiiShaprro
r,\r.'countir:g'l'ix lJusi nr:ss Consttl ti ug
April 15,2014
David Cassefti, Mayor
City of Ansonia
253 Main Street
Ansonia, CT 06401
Deal Mayor Cassetti,
Blum, Shapiro & Company, P.C, ("BlumShapiro") was engaged by tlre Ciry of Ansonia (the
"City"),
through the Office of the Generat Counsel, to provide forensio acoounting services in
order to assist in its investigation of the Office of the Town & City Clerk (the "Office").
Blumshapiro was asked to exarnine and analyze transactions including deposits, withdrawals,
checks, wire kansfers and ACH transfers in bank statements for an account held in the name of
the Cify of Ansonia
-
Town & City Clerk ("City Clerk Bank Account")
I
for a period extending
back at least i 4 years from December 31,2013. Blumshapiro was also asked to analyze and
quantify oompensation paid to the Town & City Clerk (the "Clerk") and Assistant Town & City
Clerks ('Assistant Clerks") forthe same period-
Baekground
Conneqlicut Genera!$tatutes
Conneoticut Ceneral Statutes, Chapter 92 (Town Clerks), Section 7-34a. Fees, sets forth in detail
the method of compensating town clerks based on fees collected, The statute Iists specific
dollar amounts of compensation to town clerks based on specific tasks undefiaken by town
clerks. The Statute also states:
I
The City Clerk Bank Account was maintained at First Union from
july
1999 through May 2003. The June 2003
bankstatententwasunavailable. FrornJuly2003throughApril l5,20ll,theaccountwasnraintainedatWachovia.
From April I 6, 201 1 through Decernber 201 3, tho account has been maintained ai Wells Fargo.
Blurn, Shapiro & Company, P.C,
Page I
An independonl mamber of EakerTilly lntemational
"Corupensation
for
all services other than lhose eruunerated in sttbsectian (a) of this
section which totvrt clerks are reEired by the general statutes to petform and
tot
which
contpensation is notfixed by statute shall be
fixed
and paid by the selectnzen or other
goventing body of the tor4,n ff cily in which such setilces are performed."
Fu$hennore, Connecticut General Statutes, Chapter 92 (Town Clerks), Section i-34b.
$(b)
states:
"Any town ntay, by ot'dinance, provide that the tovtn clerk sltall receive a salaty in lieu of
allfees and other contpensation providedfor in the general slalutes, u,hich salaty shall
be
fixed
by the legislative body of such town. Upon the adoption of such ot'dinance the
fees
or contpensation provided by the general statules lo be paid to the toum clerk shall
be collected by such toy'n clerk and he shall deposit all such ffioney collected by him in
accordance with such p'oyisions of law as govern the deposit of maneys belonging lo
such lov,n,"
Qity
of Ansppiq
Historically, the City has authorized a salary to be paid to the Clerk and Assistant Clerks. On
March 13, 2001, the City adopted a resolution (the "Resolution") to increase the salaries and
wages for the Clerk which was to become effective beginning Decemlrer 1, 2001. Exhibit I
displays the annual salary for the Clerk before and after the Resolution was adopted by the City,
The Clerk maintains and controls the City Clerk Bank Account, into which fees collected by the
Office are deposited. Histolically, a portion of such fees have been used by the Office to pay
additional compensation to the Clerk and Assistant Clerks by transferring funds from the City
Clerk Bank Account to the City's payroll account on a regular basis. As of December 31, 2013,
the balarrce in the City Clerk Bank Account was $277,676.
Madeleine Bottone ("lvIs. Bottone") held the office of Town & City Clerk from March 4,lgg7
throughDecember3l,20l3. UponherretirementinDecember20l3,Ms,Bottoneinformedthe
City that she considered the fees that had accumulated in the City Clerk Bank Account over the
yeals to be her propefty, representing her rotirement funds.
8lum, Shapko & Contpany, P.C.
Page 2
An independenl member of Saker Tilly hlerna$onal
4nalysis
Pellorlnel!
Blumshapiro analyzed transaotion activity and quantified the amount of money deposited to and
disbursed frorn the City Clerk Bank Account. Bank statements for the City Clerk Bank Account
were available from JLrly i 999 through December 2013. The City was unable to looate or oblain
copies of bank statements for periods prior to July 1999. BlunrShapiro analyzed all banlc
activity, including deposits and disburiements, from July i 999 through December 201 3.
Staternents for the months of December 2001, January 2002 and June 2003 could not be located.
For these three rnonths, BlumShapiro oaiculated the nat increase in the City Clerk Bank Account
(beginning balance of the next available bank statement Iess ending balance of the previous
available bank statement), which totaled $19,133.
Therefore, the detail ofthe transactions for
these three months is not lncluded in this analysis.
Based on the available bank statements, from July I999 through December 2013, there was a
totai of $4,5 37
,042
deposited and $4,259,367
disbursed from the account, for an ending
December 31,2013 bank balance af $2'17,676.
Of the $4,259,367 disbursed, $1,933,905 was remitted to the City, $i,286,468
to the City's
payroll account, $826,082 to the State of Connecticut Treasutet, $109,244
to the City for the
purchase of computers, $86,416 to the Commissioner of the Depafiment of Environmental
Protection and $17,252
to others, as set forth on Exhibit 2, which is a summary of all transactions
during the period, totaled by payee.
BlurnShapiro requested copies of any and allreports detailing the method by wlrich additional
compensation and/or the amounts transferred to the City payroll aooounl were calculated' No
such reports could be located. Therefore, Blumshapiro estirnated the amounts of additional
compensation paid to the Clerk and Assistant Clerks as set forth based ott available salary
information.
Blum, Shapiro & Company, P.C.
Page 3
Afl independefl I mmber ol Baker lilly lnteraalional
Ml Botlone
From 19992 through 2013, Ms. Bottone received base salary and additional compensation as
outlined in the follorving table:
Year
r999
20m
2001
2W2
2003
2W4
200s
2006
2W7
2008
2009
2010
2011
201?
2013
Total
Additional TotalW-2
Base salary compensation wages
S 1qs8o $
s1,838 $
66,418
S
rs,746
$
s:"sqs S
67,297
s u,ooe 5
s4:sz 5
zt,Egs
s t8,grz s
54,722 s
73,039
S
zo,43o $
52,058 5
zaqea
$
z2,o6s
$
50,280 $
72,345
$
23,830 $
SO,Srq $
ru,zu
5
25,737
$
Sr,eSZ $
77,389
$
27,796
s
51,420 $
79,2L6
$
27,796 S
so,o+r $
78,437
$
27,796 $
49,356
$
ll,tsz
5
27,796 S
48,777 $
76,573
$
zllge S
48,967
$
76,763
5
27,796 5
+8,qSZ $
76,253
5 ztJga $
ql,qts
S
75,271
s 3528S3 $
Zet,ggg $1,t14,716_
Ms. Bottone's addilional compensation was calculated as the difference between her W-2 wages
and her base salary, as outlined in the Resolution
@xhibit
I
).
3
According to the City, Ms. Botlone assunred the Torvn & City Clerk position mid'term, otr March 4, 1997.
Blum, Shapiro & Company, P.C.
Page 4
An independant membaof Baker Tilly Inlernalional
Lindu Yan Valkenburgh
Frorn March 4,1997 through March 5,20i0, Linda Van Valkenburgh ("Ms. Van Valkenburgh")
served as Assistant Town & City Clerk. From 19993 tlirough 20l0, Ms. Van Valkenburgh
received base salary and additional compensation as outlined in the following table:
Additional Totalw-2
Base salary compensation wages
$ $,986 S
32,871 S
qg,asz
$
17,375 s 32,129
s
49,505
s
18,887 $ S4Sar
$
53,468
$
20,529
$
38,504 s S9,Ogg
$
20,529
$
4q140
$
oo,E69
$ zo,sza
$
43,793 $ 64,b21
$
22,718
s
43,596
s
66,314
$
23,133
$
qo,aos
$
64,001
$
24$6
$
43,302 $
52458
$
z4ssr S
40,873
$
05,754
$
25,248
$
40,s87
$
51335
$ 4370 $
1es2s
$ 16,895
S 238,639 5 a+s,ttt SGs2,41o
Ms. Van Valkenburgh's additional compensation was calculated as the difference between her
W'2 wages and her estimated base salary, as recalculated using her bi-weekly pay rate.
Elizabeth Lltnch
From July 5,2010 through December3l,20l3, Elizabeth Lynch ("Ms. Lynoh") served as
Assistant Town & City C)erk. From 20i 0 through 2013, Ms. Lynch received base salary and
additionaI compensation as outlined in the follorving table:
Additional TotalW-2
Base salary compensation wages
$
t2,672 5 zo,g6e
$
$,638
s
26,005
$ 38,6+Z s 64,648
$
26,526
5
4914s
$ 65,SZr
$ zl,zzz 5
38,214
$
65,436
S
92,426 $ uz,gsz Sxo,lgg
3
Records were not available for periods prior to July I 999.
Year
1999
2000
2001
2002
2003
z}u
2005
2006
2007
2008
2009
2010
TOTAL
Year
2010
20tt
2012
2013
TOTAL
Blum, Shapiro & Company, P,C,
Page 5
An independent member of Bafter Tilly lntemational
Ms. Lynch's additional cornpensation was calculated as the difference between her W-2 wages
and tlre arnount of base salary, as provided by Ms' Lynch.
Suntmary
The total estimated additional compensation paid to the Clerk and Assistant Clerks based on
above tables was $ 1,343,63 I . The amount transferred to the City payroll accottnt was calculated
to be $1,286,468 from the available banlc staternents
(see Exhibit 2). The difference of $57,163
is the estimated amount transferred to the City payroll account in the months of January through
June I999, December 2001, January 2002 and June 2003 for which bank statements were
runavailable.
Co-Bclusion
The Clerk had cornplete controi of the City Clerk Bank Account and was the only signatory
thereon. From at least July 1999 thror.rgh December 3 1, 2013, the Clerk and Assistant Clerks
were compelsated through a hybrid system which inoluded salary, as authorized by the City and
additional compensation paid from funds accumulated in the City Clerk Bank Account. Funds
were transferred on a regular basis from the City Clerk Bank Account to the City payrol!
account. Such funds were then paid to tlre Clerk and Assistant Clerks and included in their
annual form W-2. The City could not provide documentation to Blumshapiro as to how the
additional cotnpensation was calculated.
Based on the analysis preformed, Other than funds transferred to the City's payroll account and
the $ 1 09,244 transfemed to the Cify for the purchase of computers, no trallsactions
in the City
Clerk Bank Account appeared to be outside the normal coulse of business'
From the available bank statements, frorn July 1999 through December 2013, BlumShapiro
conoluded that deposits to the City Clerk Bank Account totaled 3+,537,A42 and disbursdments
totaied $4,259,367, for an ending bank balance of $277,676.
Bltrm, Shapiro E CompanY, P,C.
Page 6
An independent member of BakerTilly lntemational
As detailed in this report, BlumShapiro estirnates that the following employees in the Office of
the Torvn & City Clerk were paid additional compensation fi'om the City Clerk Bank Account
between 1999 and 2013:
Madeleine Bottone4 $761,893
Linda Van Valkenburght S4+3,771
Elizabeth LYncha $137967
Total $1,343,631
Rieht to Amend-Report
Blumshapiro reserves the right to amend this report if additional information or docurnentation
comes to our attention or is presented to us that might further support, supplement or otherwise
ohange any faots or opinions expressed herein.
Dated at West IJartford, Connecticut this 1 5th day of April, 2014
CFF, CFE, CIRA
Partner
4
I 999 through 201 3
5 't999
through 2010
6
20 l0 rhrough 2013
Blum, Shapito & Company. P.C.
PageT
An ifldependent member ol Baker li[y Internatonal
ffixhBtuBtr
g
RT"SOIUTTON
r(arhleen c.8.-samela oitu nf
^ftnrnnig .
Altleruen
Ralphine S. Ford
'
gA
415u
Salary cornmitte,e
. . .
-ffid, inkoduced
ihe following Resolution:
Heolveil,rum; There salaries and, wages be ad,opEed. effeclive December 1, 200r:
The salary for Town and City Cle*, serving conseeutive terms:
TERM
lsi year ofterm
2nd year oftem:
3rd year ofterm
4th year ofterm
5th yaar oftenn
6th year ofterm
7th year ofterm
8th year of tenn
9th
year of term
lOihyem oftercr
CURRENT NEW
'
13500 13905
14580 i5017
15746
.i6218
i?006 17516
18366 18917
19835 20430
21422 22065
23136 23830
24987 25737
26986 n796
hl&&i;t/
J.oru'
UY/UI
l"t
&J
l'"'"1'r^g'*
{*$
a::sb-
$*"
i
'?0 b-l
,
Ailopted
Harch 13
,
2001
W**tt'.il,,,6fr*-,"*
City Clerk
ffixh6h$tr m
Exhibit 2
Citv of Ansonia
City Cterk Bank Account (First Union/Wachovia/Wells rrgo)
Transactions Summarized bv Name
tuly 1999 - December 2013
Name
Deposit Disbursement
Deposit Total s
4,5i.4,866.28
(_
.-'
1,s27,00
N et Depos its_-*Sta te m en ts n_'ussin g Tg!11
Deposit correction Total
__
1e.1!3,0s
2,967.75
Check Printing Fee Refund Total
75.00
City of Ansonia Total
1,933,904.83
CiW of Ansonia Pavroll Account Total
1,286,468.22
Treasurer State of Conn Total
825,082.10
Citv of Ansonia - Computer Purchase Total
109,244.00
Commissioner, Dept of Env Protection Total
86,415.50
Conn Town Clerk's Assoc Total
5,896.00
Bank Adiustment Total
2,478.86
Returned ltem Total
1,480.75
New Haven County Clerks Assoc Total
1,402,00
Secretarv ofthe State Total
780,00
Automated Debit Deluxe Check Co Total
605.87
BANK FEES TOTAI
531.34
PAUIA RAY TOTAI
200.00
New Ensland Assoc of City Town Clerks Total
150.00
Sarah Becker, Old SaybrookTown ClerkTotal
150.00
DerbvTown ClerkTotal
128,00
Sophie K Morton, Town Clerk Total
120.00
Danburv Town clerk Total
108.00
Records Admin Total
106,00
Anne Moses.llgg;yrgrr.cT!e Tgtal
" - -._
Alan Jepson, Town Clerk Total
lQ-0.90
96.00
Wallinsford Town Clerk Total
93.00
Meriden Town Clerk Total
88.00
Wachovia Total
.
cheshire Town Clerk Total
_
8_5:00
83.00
Radian ExpressTotal
83.00
Household Finance Corp. Total
55.00
Guilford Town Clerk Total
61.00
Stuhlman & Dombrowski Total
60.00
Wells Fargo Home Mortgage, lnc. Total
44.00
Hartford Total
Sh-ltr" Tr*" cl"rk T"t.
i 43.00
F_=.---_.-*-
|
43.0.0
US RecordingTotal
43.00
Ufetouch National School Studios Total
40.00
Waterburv lown Clerk Total
38.00
Stephanie Ciarleglio, Woodbridge T'C' Totat
37.00
LXntDrt I
City of Ansonia
City Clerk Sank Account
{First Union/Wachovia/Wells Fargo)
i'ransactions Summarized by Name
luly 1999 - December 2013
Name
Deposit Disbursement
UPS Total 33.15
Barbara Moore, Derby Town Clerk Total 31.00
Group G lnc, Recording Total
30.00
Esther Rozurn, Seymour Town Clerk Total
28.00
Margret Potts, Town Clerk Total
26.00
Town Clerk, East Granby Total
23,00
Ester Friedman Total 20.00
Peelle Corporation Total 18.00
Stafford Springs Town Clerk Total
18.00
Town Clerk, Sevmour Total
18.00
Virtual BankTotal
18.00
Attornev Edward Audroskl Total
15.00
ames E. Hart Total 15.00
Sxford Town Clerk Total
15.00
First Union National BankTotal
13.00
Georgette Laske, Branford Town ClerkTotal
13.00
New Haven Town Clerk Total
13.00
New London Town Clerk Total
13.00
RBMG lnc. Total
13.00
Sette & Bonadies, P.C.Total
13.00
Southington Town Clerk Total
13.00
Iown Clerk, Hartford Total
13.00
y'era
Morrison, Town Clerk Total
13.00
Ana Gonzalez CruzTotal
10.00
ELAINE POULIN Total
10.00
Fifth Third Bank Total
10.00
Robin L. clark Total
10.00
UERONICA K0ENIG Total
10.00
Comm of Revenue Services Total
5.00
Wemse Moore Total
5.00
Keith Shaw Total
Grand Total $
4,s37,a4z. $ 4,259,367
Ending Balance $
?,77,676