Frank Nagy, partner at Black, Bashor and Porsch, Sharon, said the police commission did a good job budgeting the $1,170,000 in expenses.

"The variances are not really significant," he said, comparing actual figures to budgeted ones.

The firm did not offer any recommendations for corrective action in how finances are kept, Nagy said.

The company restated its often-said opinion that the department should develop an accounting manual showing how the books are kept, should administrative assistant Barbara Boyd leave or become unable to work.

The department ended the year with a fund balance of $107,385, but that number reflects a lapse in time between when some bills were incurred and then paid, and the money is not held in a separate fund and invested as school districts would do.

The department's pension fund lost $410,000.

"Certainly not good, but not out of line with everyone else," Nagy commented.

The pension has $4,422,000 in assets and appears sound when compared to $2.3 million in potential liabilities, he said.

The pension fund lost money in 2000, but significantly increased in previous years.