Date: Fri 01-Mar-1996
Date: Fri 01-Mar-1996
Publication: Bee
Author: KAAREN
Quick Words:
tourism-district-Spragg
Full Text:
Review Of Tourism District Finances To Begin
B Y K AAREN V ALENTA
Newtown Finance Director Benjamin Spragg is scheduled to meet with members of
the regional tourism district board on Friday, March 1, to launch a review of
the agency's financial practices.
"I'm looking at this as a constructive thing," Mr Spragg said. "The tourism
agency's expertise is in another area, not in running a business office. It
may be just a matter of adopting the proper procedures and getting them back
on the right track."
Questions about the Housatonic Valley Tourism District were raised recently
when its new treasurer, Joseph Ribeiro, accused the longtime executive
director, Margaret Gagnon, of financial mismanagement. Ms Gagnon has denied
any wrongdoing.
The allegations prompted calls by local and state officials for more oversight
of the district and Connecticut's 10 other regional tourism districts.
State legislators are considering a bill, co-sponsored by State Sen Mark
Nielsen, R-Danbury, and Sen Catherine Cook, R-Waterford, that could give state
auditors the authority to review the financial records of the tourism
districts which received $45 million in state funding last year.
The Housatonic Valley Council of Elected Officials (HVCEO) backed a proposal
made by Danbury Mayor Gene Eriquez, Newtown First Selectman Bob Cascella and
Bridgewater First Selectman William Stuart that Mr Spragg and Danbury Finance
Director Dominic Setaro oversee a thorough examination of the local tourism
district's financial records and practices. The Housatonic district is slated
to receive $627,000 this year, its portion of the state lodging tax collected
by inns and hotels.
The tourism district and HVCEO encompass the towns of Bethel, Bridgewater,
Brookfield, Danbury, New Fairfield, Newtown, Redding, Ridgefield and Sherman.
Mr Spragg said he and Mr Setaro will meet with a committee from the tourism
district's nine-member board on Friday to discuss the plan which, he said,
calls for an examination of the internal controls and business practices of
the agency, but not an accounting audit.
"A CPA (certified public accountant) already said that in his opinion there
were no material areas of concern," Mr Spragg explained. "We want to get a
finer look at internal controls, such as how does the agency generate a check,
how does it generate payroll? What is the documentation?"
Mr Spragg said that, with the approval of the tourism district, he will
solicit proposals to hire an accounting firm that is experienced in examining
the practices of not-for-profit agencies.
"We want an accounting firm that has done municipal audits, one which has
experience writing management letters on internal control," he said.
Once a firm has been hired, the timeline will depend upon what they find.
The auditors will look at records from July 1, 1994, to July 30, 1995, but
could go back further if they decide it is necessary. No member of the tourism
agency's staff will be allowed to be involved with the audit process. Instead,
the process will be handled through Mr Spragg's office in Edmond Town Hall.
Assuming that no major irregularities are uncovered, the process could be
completed and the changes implented by this summer, Mr Spragg said.
