Northampton County Controller Tara Zrinski formally presented her audit of Gracedale's retention bonuses to County Council yesterday. I previously posted her report (you can see it here), in which she determined that less than half of $5 million that Council authorized for employee retention bonuses was actually spent for that purpose. Council had requested the audit in March.
The $5 million in retention bonuses at Gracedale was part of a larger $15.5 million spending plan of federal pandemic funds at the nursing home, passed in 2022 by County Council. The only Council member to vote against bonuses was John Brown.
The audit makes no recommendations. Council member Ron Heckman asked if the Controller had any recommendation that future contributions like this be placed in a restricted account so that the funds can be tracked as spent. Zrinski and Lead Auditor Stacy Duke both stated that a controller makes no recommendations when it does an "agreed upon procedures" audit. It just presents its findings.
Council member John Goffredo, who like Heckman was participating by phone, was "very dissatisfied" because the audit fails to state specifically how these funds were spent after they were commingled with other funds. No matter how hard Zrinski and Duke tried to tell him that is impossible once funds are commingled, he kept insisting that the Controller could answer that question "with a little more work." Eventually, he was stopped by Finance Committee Chair John Brown, who said "we are going around in circles."
Stacy Duke later explained that the Gracedale general fund was exhausted the year in which the retention bonuses were poured into it, so all the funds were necessarily spent on Gracedale expenses. Gracedale was contacted to see if there were any tracking, spreadsheets, balance sheets or excel reports that would show expenditures being paid from money set aside for bonuses. There were none. "There was no tracking system. I'm not really sure how you can get a tracking system out of somebody who did not track it."
In response to questions from Council Prez Lori Vargo Heffner, Duke stated that the $5 million in retention bonuses was reported to the federal government as a "revenue loss." She indicated that Gracedale had $88 million revenue in 2023 but operating expenses of $116 million. So the $5 million was used for a "revenue loss."
Council member John Brown noted that retention bonuses were still being paid after 2023, even though the federal funds had already been exhausted. This means that the county would have been spending its own money for a portion of the $2.3 million paid out in retention bonuses. Duke agreed with his observation. He would like to know what county monies were moved over to Gracedale, but he acknowledged he would need to seek a new audit to get an answer. Given that county funds were used to pay retention bonuses after 2023, Brown questioned why they are not being used to pay career service employees now. He also wanted to know why Jennifer Stewart King, who was administrator for more than seven years, was never interviewed. "our audit staff does not have the power to compel somebody to give a statement," said Zrinski, who was battling a cold, allergies or both.
Brown concluded that the audit report was "misleading." He also expressed concern that the county moved money over to Gracedale in 2024 to cover a $8 million shortfall without a budget amendment or seeking Council's approval. "Someone's moving money without the authorization of this [Council]. ... This, along with the way monies are moved without being brought before this body is troublesome. They [the county administration] ignored or didn't honor the [council] resolution ... . There's a pattern of disregard for the checks and balances that are meant to be put in place."
Based on the points raised by Brown, there are still questions that need to be answered.
10 comments:
Like I've commented on other aspects of government, "Something is rotten in Denmark!"
Duh......It only took Council eight years to see the Administration doesn't care about the rules and they do as they please. There are numerous violations but this Council doesn't have the knowledge and the abilities to do anything about it. Even Brown violated the rules when he was County Executive.
Council controls the purse strings and they make the laws. What's rotten in Denmark is they don't know how to LEGISLATE. They pay an "outside auditor" to audit the "County Funds" why don't they have him find the money?
This was a terrible presentation. It answered nothing that wasn't already known. Zirinski's kindergarten bucket 'show and tell' would be insulting to any self-respecting legislator. She did the McClure/Barron confuse and obfuscate except she is terrible at it. The questions were fair the answers were childish in their defense of the indefensible.
She is confused and protecting poor financial practices, rather than call it out. In fairness to McClure, when you spend ten thousand on your successor you expect no less. This is a disaster, a complete disregard for a council resolution. Giovanni should clean the clock with her. She is not qualified to be Controller and once again shows she is completely incompetent to be county executive, other than to keep the McClure gang in jobs. The taxpayers lose.
Even with your endorsement and propping her up. It's a very sad story.
There were several monthly meetings last year where Gracedale was never reported on and council never questioned why. They didn’t ask questions of Gracedale during the budget hearing either. They blame the administration for not having transparency yet they could have demanded updates regarding Gracedale but never did. They keep preaching “council has oversight over Gracedale” but they ignored their duty long enough last year and now chose to pounce like tigers. They also should be held accountable for some of this.
I get they are a bit passionate about the issue but the way Gofredo, Brown and Lori spoke to Tara and the female auditor was a bit uncalled for. Almost attacking them especially the female auditor was very inappropriate and unprofessional. I felt so sorry for that auditor. They did their job and you berate them for it. Just because you’re council members doesn’t mean you can sit up there and belittle and attack people. No wonder people don’t feel comfortable speaking in front of council.
And there’s Giovanni who’s running for county executive who again says nothing on the matter and sits there and stays quiet. I guess that’s how he plans on running his campaign and possible future office - will let others speak for him and we see how inappropriately that is being done.
Worst County Council in history. Next year will either be very much better, or much, much worse.
Auditors just audit. They weren't the ones who made decisions about how the money was spent. Someone from Administration, Fiscal Affairs or Grace dale should have been on hand to answer questions.
John Goffredo and John Brown repeatedly yelling at the Controller and head auditor about choices they had no part in making came off as abusive.
Council ordered an audit and an audit was completed. Now, with that information, they can conduct an investigation.
I agree with everything you stated here
As a Northampton County resident, I am concerned about a lack of financial accountability and obfuscation that surrounds it before and after. I am also not surprised. This is where we are as a nation.
My County is a microcosm of our dysfunctional State and Federal governments. Our politicians and their agents no longer respect our tax dollars as the exclusive property of those who pay those dollars.
By now, we’ve all heard the terms ‘Waste, Fraud, and Abuse.’ So, how to avoid some of this? Throw the bums out, and bring in new players. Do this regularly.
Neither political party should get a pass. My policy is two terms, or five years in a unelected position and you’ve reached your ‘Sell By Date.’
Post a Comment