Task force shines light on RMLD indiscretions
Published on January 2nd, 2002
STONEHAM, MA - The Reading Municipal Light Department (RMLD) Task Force met last week and selected a private company to complete a full forensic and investigative audit.
Melanson Heath and Company as well as Price WaterhouseCoopers made presentations in front of the seven member task force last night.
The Oversight Task Force voted unanimously (7-0) for "recommendation of Melanson lleath and Company, subject to an adequate funding mechanism."
The task force recommended that Melanson Heath and Company conduct a full forensic and investigative audit of RMI,D's entertainment and travel, credit card expenditures.
John Sullivan, a principal with Melanson Heath and Company said that they could start the investigative and auditing work within ten days of being selected.
Sullivan also estimated that the entire process would take about 1-3 months (450 hours). llourly rates Sullivan said are between $40 $140.
The cost of the audit would he in the area of $46,000 and would involve examining the Inspector Generals report, detailed analysis of files, the
interviewing of all employees who had access to the credit cards as well as RMLD and Town officials, and find out who oversees department expenditures.
Sullivan outlined for the task force his extensive background in "forensic and investigative work" in Massachusetts. Sullivan's company has experience in this field and audits light departments in Peabody, Danvers, and Wakefield yearly.
Task Force member and Selectman Matthew Cummings said he wanted to know, "whether or not policies were followed regarding credit card activity."
FinCom Chair Richard McDonald said that he also wanted them to look at "the involvement of petty cash," and also noted that, "450 hours seemed like a lot of time."
Sullivan responded by saying, "If people cooperate then this could be done ouite quickIy," but he said, "These kind of audits take a lot of time."
RMLD Board Chairman Alan Ames raised an issue regarding the task force's mission statement. He said, "I believe the task force can and should be neutral," he continued, "and find out what was given to the Inspector General, and whether or not complete information was given." Cummings also said, "I think the community is interested in how the department conducts business." Cummings also expressed what he believed the task force's role was. He said, "The marching order was to look at travel and entertainment and credit card expenditures."
The Inspector General's report does not look at airfare expenditures and the committee agreed this was an area that needed to be looked at very seriously.
Selectman Cummings said, "The Inspector General's Report specifically overlooked airfare. We want that looked at so the community and the RMLD sees the entire picture."
RMLD General Manager Leonard Rucker spoke briefly at the end of the meeting and said, "We will not withhold information and we will not interfere in the process."
Many questions were raised regarding who would pay for the audit. The majority of the task force expected that FinCom would pay for the audit and then bill the RMLD.
The next meeting of the RMLD Oversight Task Force will take place next Thursday, January 3 at 7:30.
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