audit 2010 letter to council 4-21-11

April 21, 2011
Gennaro A. Marino P.E.
409 West Main Street
Kutztown, Pa 19530
610-683-7977
www.marinoreport.com
Kutztown Mayor Sandra Green
Kutztown Borough Council
Dear Elected Officials,

On April 4, 2011 I purchased the Borough’s mandatory Annual Audit for 2010 and was told there were no other annual audits for any of the Borough Departments. At my Court hearing Kutztown Borough Solicitor Keith Mooney and Judge Jeffrey L. Schmehl told me if I wanted to know the profit or loss of a Borough Department all I had to do was sum up the Revenues and Expenditures in the audit and the difference was the profit or loss.

I did as they suggested and came up with the following figures:

Waste Water\Sewage lost ($529,996)
Water System lost ($541,487)
Electric System earned $1,207,574
Telecommunications lost ($301,305)
Solid Waste earned $19, 533

And finally total expenditures $18,190,964 minus total revenues $17,126,887 means the Borough is short $1,064,077. Where will this $1,064,077 come from? All of the above figures are from the Annual Borough Audit of 2010 which was submitted to the DCED.

When I stated to the Borough Finance Director Samilo that the Audit lacked details he stated this Audit was for the DCED and there is another Audit which is being prepared that will be submitted to the Borough Council. This means the Borough has 2 different Audits, one to be submitted to the Commonwealth and one to be submitted to the Borough Council. Does the Borough have two sets of books?

Why aren’t the Waste Water System, Water System, Electric System, Telecommunications Department and Solid Waste Departments audited as per the Borough Code?
Sincerely,


Gennaro A. Marino P.E.