The Herald, Sharon, PA Published Thursday, May 16, 2002

FARRELL, WHEATLAND

Rec board tables spending in wake of audit

By Joe Pinchot
Herald Staff Writer

Farrell Recreation Commission is holding off acting on some funding requests until it learns if there will be any repercussions from an apparent violation of state guidelines.

The commission discussed three funding requests Wednesday: from the Farrell-Wheatland Little League, $950 for charter fees and insurance; from Endorse Resistance of All Drug Abuse Everywhere, $500 for its Juneteenth celebration; and from the Farrell Midget Football Cheerleader Association, up to $100 by buying an advertisement in a program.

The requests are the kinds of expenses that would be paid from a Community Development Block Grant, which the state funneled to the commission through the city, said Commission Chairman Riley Smoot.

An audit of 2001 showed that invoices were not kept for $20,053 in commission expenses, an apparent violation of CDBG guidelines.

Smoot recommended the commission hold off using any money that might come from the block grant until the state responds to the apparent violation.

City Manager LaVon Saternow said the state Department of Community and Economic Development has been informed of the audit and the apparent violation of CDBG rules, and Councilman Louis Falconi, a commission member, said he believed a copy has been sent to the state.

Mrs. Saternow said she was told state officials would be coming in to conduct a probe, but she did not know when or what form the probe will take.

"Our discussion has been preliminary," she said. "They've given no indication what they will do."

The commission set the budget for the summer recreation program at $31,500, the sum of what the school district ($27,500) and city ($5,000) contribute, minus some bills that were recently approved for payment.

Smoot suggested the commission not spend the $3,337 left over from last year, which includes $301 in CDBG funds, until the state probe is settled.

Recreation Director Anthony Retone estimated the summer recreation program would cost $26,000 for salaries, leaving little for equipment.

The commission also balked at paying for the audit, which was conducted by McGill, Power, Bell & Associates LLP. The tab of $3,200 solicited audible gasps from some commission members.

"Will they accept installment payments?" quipped commission member James Guerino, a school board member.

Falconi said the commission will have to ask council and the school board if they would be willing to split the cost. He also said McGill, Power, Bell should be asked if it could conduct the audit as part of its audits of the school board and city.


You can e-mail Herald Staff Writer Joe Pinchot at jpinchot@sharon-herald.com



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