The Saline Reporter
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Trip fund continues to face scrutiny
Pittsfield Township Public Safety launches criminal investigation
By Sue G. Collins, Staff Writer
PUBLISHED: September 11, 2008
Pittsfield Township Department of Public Safety launched a criminal investigation Tuesday into the accounting practices of the Pittsfield senior citizen group after township officials discovered in June the group was operating using the township's tax ID number.
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John Phillips, director of public safety for the township, said his department will take a thorough look at the checking accounts and certificates of deposit used by the volunteer seniors who plan events, trips and outings for some 1,200 members and help maintain the senior center.
Deputy Director Elizabeth McGuire will head up the investigation to determine any criminal behavior by the seniors.
Early in August, more than 50 seniors picketed outside the Pittsfield Township Community Center on Ellsworth Road to protest the move by township officials to take control of more than $200,000 in the group's bank accounts. The seniors said they raised some of the money through membership dues and small fundraisers over the years, and used it to purchase amenities, such as refrigerators, stoves, chairs and tables, for the senior center.
Township officials said the accounts needed to be signed over to the township because they were created using the township's tax identification number, which the township never authorized.
Township administrators said they were unaware of the accounts until the bank mistakenly sent a safekeeping certificate to Township Treasurer Christina Lirones June 23.
"They assumed a travel agency was handling the funds," said township attorney Bruce Laidlaw.
Lirones further discovered that more than $100,000 was held in three checking accounts under the township's tax identification number and that the accounts had four signers. Only the township clerk and treasurer are legal signers on township accounts.
"This was all a violation of law," Lirones said.
In a letter July 21 to Lirones, Laidlaw advised that the township move the money into accounts approved by the Township Board and that an audit be conducted of the senior center financial records.
"The senior center has receipts and makes expenditures of hundred of thousands of dollars per year," Laidlaw wrote. "None of the receipts or payments has gone through the procedures required by law."
Terry Bertram, the attorney representing the seniors, said township officials gave him a deadline of Sept. 30 to bring the group into compliance with a list of issues.
Phillips said he had received no such deadline for his criminal investigation.
Bertram said there are six outstanding concerns, loosely outlined by officials whom, he said, have since refused to meet with him or the seniors.
The group needs to be incorporated.
The group needs to obtain a tax ID number.
The group, under the township's reign, needs to conduct travel business separately.
The group needs to complete an indemnity agreement.
A reserve fund needs to be established for contingent liabilities or IRS issues.
Escorts on trips. previously Parks and Recreation staff or senior volunteers traveling for free, need to file appropriate tax forms.
Bertram said he has completed the first two items, is researching the tax issues on the escort, and is now waiting for township staff and Laidlaw to provide work on the other items.
Laidlaw said yesterday he hoped to complete a draft agreement between the township and Pittsfield Seniors Inc. to present to administrators for review this week. Along with the indemnity clause, the agreement will require the books be auditable and the seniors entirely liable for any travel-related claims.
"There is a lot of money going through that account. With some trips costing $5,000, one would think there was a better method of accounting. All I've seen is check book registers," said Laidlaw, who said the audit is under way.
"We have, of course, agreed to follow any accounting practices and to be completely auditable," he said.
In the meantime, township staff are handling the accounts. In August and September, Pittsfield trustees authorized checks totaling nearly $100,000 for group payables to avoid trip cancellations.
Bertram said there are two other funds the township has "locked up," a general fund and the memorial fund.
"The township has taken these two funds and aren't talking about them at all. The seniors are being punished for something they didn't do," he said.
Staff Writer Sue G. Collins can be reached at 429-7380 or scollins@heritage.com.
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