NYS Comptroller Office Completes First Phase of Mount Vernon Audit

September 18, 2020 — Yesterday, the City of Mount Vernon received the audit report prepared by the Office of the State Comptroller (OSC). Requested by Mayor Shawyn Patterson-Howard, the audit was conducted to determine whether financial information was made available to the City Council and City Officials for the management of operations. The report offers key findings and recommendations along with responses from the Mayor’s office and City Council conclusions.

The report highlighted the lack of required financial reporting and information from the Comptroller’s office, as well as her failure to provide information to auditors and hire a 1st & 2nd Deputy Comptroller to carry out high level financial obligations. To date, Comptroller Reynolds has yet to provide the following items recommended by the OSC:

· Interim financial reports including budgetary status reports, cash flow reports and fund balance projections

· Paying for the city’s independent auditors to provide the information necessary to complete the 2016 audit and all subsequent audits,

· Continual refusal to file mandatory annual financial reports within required time-frames

· Conduct audits of all city hall departments at least once a year

Furthermore, Comptroller Reynolds continued refusal to provide interim financial reports, leaves the City Council and Mayor’s office operating blind in the face of the COVID pandemic. “We have grave concerns about the lack of information from Comptroller Reynolds’ office, said Mayor Shawyn Patterson-Howard. “Despite court ordered and state recommended actions, the Mayor’s Office and City Council are still without critical financial data necessary to make informed decisions about the City’s fiscal condition. We remain hopeful that the completed audit will spur the Comptroller to fulfill the duties of her position for the good of Mount Vernon.”

Additionally, the report contained recommendations from OSC for the City Council/Mayor/Board of Estimate. Since early August, the City Council has passed multiple policies & procedures/ordinances to compel Comptroller Reynolds to do her job, including requesting interim financial & budget reports, a list of city accounts, and detailed financial reconciliations. She has failed to comply with any of the previous ordinances. Meanwhile, the Mayor has re-established the Capital Projects Board and already begun the budget process according to the timeline provided by the Charter.

Mayor Shawyn Patterson-Howard said, “The audit confirms what we have stated for months, Comptroller Reynolds has failed to provide adequate financial reports and information to allow our administration and the City Council to make responsible financial decisions for Mount Vernon. Additionally, we are concerned as to the lack of access given

to our external auditors and Comptroller Reynolds failure to hire two deputy comptrollers for the past two years. As the Chief Financial Officer for the city the Comptroller Reynolds’s lack of transparency, as highlighted by the state report, shows a failure to hire critical positions, provide critical financial information, cooperate with agencies and elected officials and raises severe red flags into her daily operations. We look forward to the next stage of the OSC audit which explores deeper internal financial controls.

Lisa A. Copeland, City Council President said on behalf of the City Council, “It is quite clear the Comptroller Reynolds is withholding information from the council and administration that is desperately needed to make appropriate financial decisions. The City Council has passed numerous ordinances that Comptroller Reynolds has failed to follow. No business entity whether a small business or local government cannot operate with financial reports. Comptroller Reynolds must hire qualified accountants and financial technicians to produce statistical reports for the city as outlined by the charter. The efficiency of her office must improve to provide greater transparency for the operations of city government. The council will continue to act and protect the residents of Mount Vernon.