McCaw Criticizes West Haven Mayor. State Will Withhold Funds.
What a differences a jarring financial scandal makes. Not long ago, state budget director Melissa McCaw praised West Haven officials for “the fiscal integrity and discipline built into the city’s decision-making.” On Monday, McCaw, running the state budget office without the assistance of her deposed friend and deputy, Konstantinos Diamantis, sent a letter demanding answers from often confused Mayor Nancy Rossi. West Haven officials have been slow to explain how more that $600,000 in federal Covid-19 federal relief funds disappeared, allegedly stolen by Michael DiMassa, a former state employee who resigned his seat in the state Hiuse of Representatives last month.
West Haven’s finances are under state supervision. Rossi and her team have not provided documents and explanations OPM has been seeking for months. “Staffing to adequate levels should not be delayed to the next budget.,” McCaw wrote. The letter claims OPM and the West Haven oversight board have been “persistent in exhorting” West Haven to meet its obligations by making required changes in how it operates.
Here’s the McCaw missile:
November 15, 2021
Dear Mayor Rossi,
The purpose of this letter is to follow up on my September 17, 2021 letter to you in which I advised the City to provide OPM with a plan for resolving prior year audit findings and for addressing persistent outstanding items in the FY 2021 Memorandum of Agreement between the City and OPM. My request was reiterated by me, and affirmed by members of the MARB, at the October 6, 2021 and November 3, 2021 board meetings.
As of Friday, November 12, 2021, my office has only received a response from the City regarding issues related to the purchasing function. However, there are remaining open items related to audit findings, the Personnel Department, staff training on the Munis financial system and staffing of the Finance Department.
This correspondence is formal notification that Municipal Restructuring Funds will not be distributed until the City is in full compliance with the MOA, and until the City’s annual financial audit and the CohnReznick audit are both completed. Further, the City has been placed on notice that if either audit indicates that the City’s delays in taking corrective actions to address audit findings were contributing factors to any misuse of Covid Relief Funds, those conclusions would warrant withholding MRF.
While the City’s improvements to its balance sheet and overall financial condition have been recognized, both OPM and the MARB have been consistent in urging the City to strengthen its financial management infrastructure by hiring the necessary staff to support that infrastructure and implementing and enforcing necessary internal control systems. OPM and the MARB have been persistent in exhorting the City to take steps to resolve audit findings and make improvements outlined in the City’s Memorandum of Agreement with OPM. OPM has consistently supported the City in these efforts.
There is no question that that City must fulfill the requirements of the MOA and do so with the greatest of urgency. As has been repeatedly requested, the City must submit a full plan for achieving compliance that commits to deadlines, assigns responsibilities for completing tasks, and ensures accountability in regular reporting.
This plan must include steps and timelines for hiring any positions deemed necessary for ensuring proper controls in the areas of finance and procurement. Staffing to adequate levels should not be delayed to the next budget. Current vacancies, and any additional needed positions, should be filled with qualified individuals as quickly as a responsible recruitment process will allow. If necessary, the City’s contingency funds should be made available to cover any related unbudgeted salary and benefit expenses for the remainder of the current fiscal year.
Sincerely,
Melissa McCaw, Secretary
Posted November 16, 2021.