East Hampton Conservators - Ben Zwirn 11 Point Plan

An 11-point plan as proposed by Supervisor Candidate Ben Zwirn for restoring financial
responsibility to East Hampton.

1. Implement All NY State Comptroller Recommendations

    * NYS Comptroller Thomas DiNapoli's June 2009 audit report on the Peconic Bay Community Preservation Fund found significant misuse of CPF funds in East Hampton and reveals a lack of basic fiscal controls in the Department of Finance.
    * The audit contains five specific recommendations for East Hampton which should be implemented immediately:
          o Discontinue advancing CPF monies to other funds;
          o Determine the amount of interest due for the CPF borrowings;
          o Implement a system to identify actual costs incurred by other funds on behalf of the CPF;
          o Approve by resolution a list of employees authorized to conduct bank transactions and provide that list to all of the Town's depository banks;
          o Expend CPF funds for only those purposes authorized by law.

2. Institute New Budget Document

    * The current Town of East Hampton budget document has no utility, provides no justification or explanation of expenses and obscures an accurate representation of how Town tax dollars are spent. A budget is a policy document and should detail how, where and why taxpayer dollars are spent. A completely new budget document should be created which includes:
          o Detailed narratives justifying expenditures town wide and on a departmental basis
          o Current year budget estimates, indicating how well the budget is being administered mid-year
          o Historical expenditure and revenue data, showing two years of previous actual expenses
          o A complete summary of revenues by fund that include real property tax revenues
          o A complete summary of expenditures by fund, appropriation and department that is included in the front of the document, and departmental cost summaries
          o Fund balances for all funds that show previous years' fund balances and projected fund balances, including use of surplus (if applicable)
          o Historical property tax information by fund
          o Full representation of staffing by department and title

3. Require Frequent Fiscal Briefings

* The Town Comptroller should present a financial update prior to every town board meeting, reporting on year-to-date expenditures, estimated annual expenditures, and addressing any trends, red flags, etc.
* According to the NY State Comptroller, a municipality's governing board has certain fiduciary responsibilities to protect public assets from loss, waste or misuse. A frequent and free-flow of financial information between the Supervisor, Town Board and Comptroller at public meetings is crucial to returning fiscal integrity to East Hampton

4. Build a Strong Fiscal Team

    * Effective fiscal management requires a strong team of professionals working together to protect taxpayer dollars while operating within all laws, rules, regulations and accounting standards. This team includes:
          o A professional Comptroller - a CPA and/or someone with extensive municipal budget experience;
          o A skilled independent auditing firm, which will provide comprehensive fiscal advice to not just the Comptroller, but also to the Supervisor and the Town Board (the NY State Comptroller recommends that a new independent auditor is hired through a competitive bid process at least every five years);
        o A highly qualified financial adviser
          o A knowledgeable and professional bond counsel

5. Adopt Best Practice Fiscal Policies

    * The Town Board should adopt a comprehensive set of fiscal policies including:
          o Budgetary & Interfund transfer policy
          o Budgetary control policy
          o Investment policy
          o Procurement policy
          o Hiring policy

6. Implement Best Practice Standard Operating Procedures

    * Segregate budget accounts
    * Institute payroll safeguards
    * Require all requests from departments to the Commissioner of Finance/Town Comptroller be in writing
    * Prepare fiscal impact statements for all Town Board Resolutions, and require the Commissioner of Finance/Comptroller to attend every Town Board meeting to discuss fiscal implications and answer questions from the Board.
    * Provide budget training to department staff budget and require department heads to take responsibility for keeping their line items within budgeted expenditures.
    * Provide monthly year-to-date budget performance reports to department heads and require department heads to advise the Commissioner of Finance/Comptroller of any spending that may exceed budget.

7. Implement Internal Control & Fraud-Prevention Program

    * Employees who deal with cash must be trained in basic internal controls. A four-point program will be implement which provides:
          o Ethics Training
          o Fraud detection program/fraud hotline/whistleblower protection program
          o New and complete internal controls to protect against fraud (includes segregation of duties, cross-training, cash controls)
          o Fraud reaction plan - documented procedures on what to do if fraud is suspected/discovered.

8. Provide Open, Accountable & Responsible Government

    * Public access to town government is critical to restore public trust and insure fiscal integrity. The follow actions will help ensure open, accountable government:
          o Schedule all town board meetings during evening hours and rotate to different locations throughout the town, especially when the agenda addresses a neighborhood specific issue.
          o All advisory board meetings will follow the Open Meetings Law.
          o The Town budget calendar will be published with dates both in print and online, and town budget hearings will be open to the public.
          o Town Board meeting executive sessions will be limited to personnel matters and litigation.
          o Public requests for information no longer require FOIL requests.
          o All Town contracts and vendors selected through RFPs or bids will be awarded at Town Board meetings.

9. Consult with State Attorney General & NY State Comptroller

* If there is any question as to whether an action is proper or not, an advisory opinion will be sought from the State Attorney General and/or NY State Comptroller.

10. Restructure Capital Budget Accounting

* All capital budget project funds will be segregated into separate accounts and reconciliations of each project performed to assure proper accounting of capital monies.

11. Perform Cash Audits of All Departments

* To assure that cash is properly secured and accounted for, cash audits of all departments will take place which will determine if any weaknesses in internal controls exist and corrective action measures will be recommended.