Yeadon

Borough Committee Report

Committee Name: Finance Committee

Chair:
LaToya Monroe
Meeting Date(s):
March 7, 2016, 10am
Attendees:
LaToya Monroe

Summary Narrative

Finance Director, Joseph Possenti, Jr., refused to attend the Finance Committee meeting
without reason or proper notice. While this meeting has been scheduled for more than a
month, an email was sent at 9:30pm Sunday evening that he would not be present.
President Council-Harris was aware of the refusal to attend. Further inquiries were made
into the situation but there was no response by any involved parties. The meeting
continued in his absence as there were several important items to discuss including
providing budget clarity and establishing criteria and processes for fund requests. Finance
Chair was also prepared to make a direct inquiry into the absence of a completed 2014
audit. Additionally there was an egregious oversight in the contract signed ONLY by
President Council-Harris with the Possenti firm in 2014 that requires immediate attention.
In conclusion, the Finance Committee believes that the Possenti management firm could be
a valuable asset to the community if held to a higher standard of accountability,
transparency, and cooperation with the ENTIRE Council rather than JUST the Council
President. As this may be the FINAL report by the current Chair of the Finance Committee,
the Committee implores the new Chair to operate with integrity and not ignore the
mismanagement and chaos currently plaguing our Council. YEADON DESERVES BETTER.
The current Chair hopes the new Chair has a proven track record for honesty, intelligence,
attention to detail, and acute business acumen because the last thing Yeadon needs is a
fraudulent, dishonest person who lacks the professionalism to self-correct when a mistake
is made. It is also worth noting that the current Chair would NEVER relinquish this
position voluntarily.

Action Items from Previous Meeting(s)

Organizational chart with job descriptions where applicable
Relevant contractual agreements and bond information
Past due audit and auditor/options
Identifying limitations of each fund account
Borough Map
Identify best practices for requesting funds to ensure and improve accuracy of
information, promote transparency and accountability
Please prepare and submit report to Borough Manager three (3) days before each scheduled Caucus Meeting . In
order to expedite monthly meetings, these reports will be included with the agenda for all members review prior
to and during the meeting.

Schedule meetings with key community stakeholders including but not limited to
Pension Manager, Banking Representative, Information Technology, Auditor, Tax
Personnel, and Insurance Carrier
Review and improve procedures for monitoring property reassessments that could
have an adverse affect on the Borough

Current Action Items

There is an absence of transparency and accountability with respect to the
incomplete 2014 Audit of the Borough finances. It was discovered that one major
obstacle in this process is that the Possenti firm does not have in house accountants.
Instead, they subcontract the accounting services of Borough to a small CPA firm in
Media that has still not provided Larsen & Allen, the now former Auditor, with the
information needed to complete the 2014 Audit. The 2015 Audit process usually
begins in April. With the Possenti firm having presented and received authorization
to switch to a new Auditor, there will be no baseline for this new Auditor to pull
from with the absence of a 2014 Audit. It is now evident that key information
regarding the Possenti firms desire to change auditors was withheld from the
majority of Council in the selection process of this new Auditor. This was not simply
a money-saving tactic. This was an attempt to switch to an Auditor that the Possenti
firm was more comfortable with as they have not been able to meet the high
standards of best practice utilized by Larsen & Allen.
The management contract with the Possenti firm was publicly discussed to be
agreed upon at $295,000 per year. However, upon further examination of the
contract it was revealed that the word BI-WEEKLY was substituted for BI-
MONTHLY which actually agrees to the firm charging the Borough $319,592
annually. This error must be fixed immediately and the Possenti firm must
relinquish any past and future rights to monies owed due to this egregious
oversight. This contract was signed ONLY by President Council-Harris.
After a review of the Possenti invoices, the Finance Committee discovered that there
was a previous credit issued when the firm did not provide the Borough with the
correct number of full time staff members as per their contract. The Finance
Director, Borough Manager and his Secretary are simply NOT working full time
employee hours hence the Borough is not receiving adequate service for the
payments rendered. The Finance Committee has been to the Borough on official
business on no less than 10 occasions and these employees have not been available
during working hours. The Finance Director has been substantially late to arrive or
absent from EVERY meeting scheduled with the Finance Committee. This lack of
accessibility has been a point of contention with various community members
discussed publicly at several meetings and has not been addressed. The Finance
Committee made the suggestion that the Borough Manager publish available walk-in
hours to no avail. The Finance Committee was recently physically denied access to
the Finance Department by the Borough Manager during a visit to the Borough to
provide a signature on a check. He stood in the doorway and would not allow the
Finance Chair to pass until another employee specifically asked that Finance Chair
be permitted to come into the office. This behavior is a cause for great concern. If
the Chair of the Finance Committee is being denied access as a Councilor, it is
unfathomable the atrocities the public is being faced with.
The claims that the Possenti firm is saving money by switching to Republic Bank

Please prepare and submit report to Borough Manager three (3) days before each scheduled Caucus Meeting . In
order to expedite monthly meetings, these reports will be included with the agenda for all members review prior
to and during the meeting.

from Beneficial Bank cannot be substantiated at this time. The Beneficial bank
statements are no longer housed in the Borough Hall. It is a dangerous and
nefarious practice to house sensitive Borough information offsite and out of the
reach of the Council and general public. Practices such as these explain why the
Borough is unable and unwilling to respond to Right To Know requests in a timely
manner. Additionally, the Possenti firm needs to provide the Borough with a secure
method to deposit cash into the new bank. As it stands, the new bank is in
Springfield and cash received by the Borough has to be physically taken to the bank,
requiring the cash to change hands several times, by whoever is available to make
the deposit. This ill-advised practice leaves the Borough vulnerable to theft and
often removes several Borough employees from their responsibilities for hours at a
time. The bank also requires that the Borough scans its own checks rather than take
them to the bank. This requires additional time to be used by Borough employees
that was not a requirement of Beneficial bank a local bank. Several other banks are
available, in the area and would not require such extensive involvement at the
expense of Borough employees.
Due to the lack of transparency, auditing and denial of access to Borough
documents, the Finance Committee feels it is necessary to reinstate the position of
Borough Treasurer effective immediately. The Borough needs someone to provide
oversight to the management firm to ensure best practices are being adhered to.
The Borough previously allotted $10,000/year for the Treasure position. Since this
position has been deemed necessary due to the firms underperformance, the
Finance Committee believes the firm should absorb the cost of reinstating the
position. As it stands, the firm runs the Borough and the Council is expected to look
the other way- with the exception of the President of Council who is in constant
communication with the Possenti firm, yet has not held them accountable for their
shortfalls or misdeeds.
There is currently no procedure in place for requesting funds from the Borough.
Just because an item is listed in the budget does not mean that the monies should be
allowed to be accessed without a process or approval. This lack of documented
procedure leaves the Borough vulnerable to theft and mismanagement of funds.

Formal Motions to the Council

The Finance Committee would like Council to entertain a motion to revise the
contract with the Possenti management firm to accurately reflect the amount they
are being paid as well as require the Possenti firm to relinquish any rights to past
compensation due to the erroneous contract. The Finance Committee would also
demand written documentation of the discount provided for the past two years
service and provide a reason this discount is no longer applied costing the
Borough $20,000 more annually for ongoing, subpar services.
The Finance Committee would like Council to entertain a motion that would require
the employees provided by the Possenti management firm to publish their working
hours and institute a system of checks and balances to ensure that the Borough is
receiving the services for which it is paying.
The Finance Committee would like Council to entertain a motion for the Possenti
firm to refund a portion of their fees in light of services not being rendered
according to their contract.
The Finance Committee would like Council to entertain a motion to reactivate the
Please prepare and submit report to Borough Manager three (3) days before each scheduled Caucus Meeting . In
order to expedite monthly meetings, these reports will be included with the agenda for all members review prior
to and during the meeting.

position of Borough Treasurer immediately and authorize the Finance Chair to

conduct a search to fill this position absent the influence of the management firm as
it would be a conflict of interest for them to have input over the person that will
oversee their practices.
The Finance Committee would like Council to entertain a motion to refuse to
consider invoices during Council meetings that have not been presented and
discussed at the regularly scheduled Caucus meeting and placed on the Accounts
Payable (AP) list with the exception of agreed upon prepaid items such as bills for
which the Borough may incur late fees (i.e. utility, copier rental, etc.)
The Finance Committee would like Council to entertain a motion to require the
Possenti firm to immediately establish a safe, reliable and non-cumbersome
procedure for banking services with special attention being made to handling cash
deposits.

Next Meeting Date: April 11, 2016, 10am

Please prepare and submit report to Borough Manager three (3) days before each scheduled Caucus Meeting . In
order to expedite monthly meetings, these reports will be included with the agenda for all members review prior
to and during the meeting.