×

Petty cash becomes big deal

Auditor puts stop to practice at Niles wellness center

NILES – The city’s wellness center was using a petty cash fund for nearly a year after the city’s auditor told all departments to stop holding cash and instead deposit it with the city.

City Auditor Giovanne Merlo submitted a letter Wednesday to the city’s Board of Control requesting Mayor Tom Scarnecchia and Safety Service Director Jim DePasquale correct the issue.

Merlo, who was notified of the practice by the Tribune Chronicle, states in the letter that he notified city departments in January or February of 2016 to stop keeping petty cash funds.

DePasquale said employees at the center were notified Wednesday to stop the practice and by 1 p.m. there was no longer any petty cash at the center.

The center has no director or bookkeeper. It has been scrutinized in past city audits for poor controls over the handling of money and product.

However, careful ledgers and receipts describing the petty cash fund balance and how it was spent were kept at the center, Merlo said.

Expenses at the center outweigh the cash it brings in, causing a strain on the struggling general fund, which subsidizes its losses.

In an effort to save $50,000 a year, the director’s position was eliminated and divided into part-time positions in a version of former Mayor Ralph Infante’s 2015 fiscal recovery plan. The only filled supervisory role is the athletic director, held by Scott MacMillan.

MacMillan said his part-time job at the center, which earns him $25,000 a year with no benefits, is supposed to consist of athletic scheduling and managing field time.

Because there is no director of the center, MacMillan said he is often saddled with work outside of the responsibilities that come with his title.

The practice of holding onto some day pass revenue to keep in reserve for emergency purchases has been in place since the center was formed, MacMillan said. Scarnecchia tasked him this year with taking the center’s cash to be deposited, but the responsibility is not in his job description and MacMillan said he was never informed by any previous director or the administration to eliminate the petty cash practice.

Merlo said the responsibility was on Scarnecchia and DePasquale to ensure the practice ended in all city departments and at the center, which falls under the administration’s direction. The change was implemented during a Board of Control meeting at the beginning of the year after auditors realized the billing office was using a petty cash fund, Merlo said. DePasquale and Scarnecchia are members of the Board of Control.

The fund usually held between $100 and $150, MacMillan said, and was used for emergency repairs like replacing a torn net before a soccer match.

In the future, the center will do as other city departments when they need money for an emergency purchase – use a blanket purchase order previously authorized by the board, Merlo said.

Petty cash funds not reported to the auditor don’t allow the city to paint a complete picture of finances in the department, Merlo said.

NEWSLETTER

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *
     

COMMENTS

Starting at $4.85/week.

Subscribe Today