February 5, 2007 Auditor: State money used correctly
By CATE LECUYER and BOB AUDETTE, Reformer Staff
Brattleboro Reformer
Friday, February 2
BRATTLEBORO --Though he found fault in many of the town's procedures related to its multi-modal project, State Auditor Tom Salmon found that state money spent on the transportation center was used correctly.
"Clearly, the town of Brattleboro's municipal oversight of this project was hindered by available staff resources, staff turnover, complex and strict federal standards, changes in the local accounting system and also the excessive delegation of financial oversight and reporting to a third-party project manager," wrote Salmon in the cover letter to his draft report, which is available to the public this morning at 9.
The report from the state auditor's office is limited to the money the state granted for the project.
Those funds, $1 million in total, were used for the Brattleboro Transportation Center parking garage and "on-going operational and debt-service expenses."
"It is our view that state funds were spent correctly," wrote Salmon.
Like the report from the Federal Transit Administration, the auditor's report is a formal review, and not an investigation or a precise audit of the town's books.
The state and federal departments worked side by side, conducting interviews with town officials around the same time. The state report comes almost three weeks after the FTA draft report, which contained a long list of serious mistakes the town made during the last six years in managing the $5 million it received in grants for the multi-modal project.
The grant was meant to subsidize both the $10 million parking garage, which was completed in 2003, and improvements at the train station.
Though Salmon found no malfeasance in his review, he applauded Brattleboro officials for committing to change in their accountability systems.
"I salute town officials for their determination and commitment," wrote Salmon in his cover letter. "Their example should inspire others in Vermont to make needed improvements."
One of the major criticisms by the FTA was that the town paid New England Management, the project manager, more than $500,000 -- without a contract -- and gave the firm an "inordinate amount" of control over the project.
The state auditor wrote that many municipalities in the Green Mountain State should take Brattleboro's experience to heart.
"There are lessons for all Vermont towns and cities in this report, and in the forthcoming FTA report on the project's financial shortcomings," wrote Salmon. "These lessons are about the challenges of meeting additional federal and state standards for the proper accounting and reporting of special project funds."
The FTA recommended the town reconcile finances on a monthly basis and improve information technology, criticisms that already showed up on the town's 2005 audit and the Matrix Study. Assistant Town Manager Barbara Sondag and Selectboard Chairman Steve Steidle said they were not surprised by many of the FTA findings, and are in the process of fixing many of those problems.
Union Station's renovation is five years in the making, and the project likely has another couple of years to go. It is on hold, however, until the town responds to the FTA and state reports, corrects all errors, and makes the required financial changes so that town accounting meets state and federal standards. Work on it will probably not start again until early summer, town officials have said.
When it's done, the $4.2 million project will enhance the train station, adding a canopy, lights, parking and a bus station. |
