By DANIEL SUDDEATH
A private audit of the New Albany general and sewer funds would cover the same material studied annually by the State Board of Accounts and would be considered a duplication of services, an official with the agency said this week.
At the end of Monday’s City Council meeting, Councilman Jack Messer announced that he agrees with the New Albany police and fire unions that a private audit of city finances is needed.
It came on the heels of a report calling for the council to raise sewer rates by 70 percent due in part to missed payments and failure by the utility to meet loan agreements that include reserving two months of operating expenses.
Police and fire spending has also led to a shortfall in public safety budgets in the past two years, with the departments asking for $1.5 million in Economic Development Income Tax funds to balance their 2010 budgets.
Union heads have requested an audit — which they would help fund — to clarify what finances the city has available.
Each year, the state board of accounts audits the New Albany books. The 2008 audit was released last October and the 2009 report should be released this fall.
Messer said he fought Councilman Dan Coffey when he first suggested another audit beyond the state’s analysis, but has changed his mind.
“I think it’s an expense we can’t afford not to [make],” he said.
But Charles Pride, supervisor of cities, towns and libraries for the state board of accounts, said in a phone interview another audit would be a duplicate service.
“We very well could ask the responsible official to pay that money back,” Pride said. “We would consider any kind of an audit which we do to be a duplication of service. The taxpayers would be paying for that service twice.”
Pride said he would have to see the exact details of the audit the council may consider before commenting further on what the state’s reaction would be.
He wouldn’t expound as to whether the entire council or just the members in favor of an audit would be asked to repay its cost if another report is ordered.
Pride did defend the state board of accounts, saying the agency checks the funds it audits for compliance with state statutes.
Coffey criticized the state board of accounts at Monday’s meeting, saying the agency “has no jurisdiction.”
At least five council members appear to be supportive of an audit. Councilman Bob Caesar said he was considering an audit that is different from what the state board of accounts administers, though he declined to specify any details.
Councilmen Steve Price and Kevin Zurschmiede also voiced their support for another audit, joining Coffey and Messer. But Zurschmiede said the council would have to clear another audit with the state first.
