West Bloomfield Officials Expand Investigation into Treasurer's Office

West Bloomfield Township trustees have expanded an investigation into treasurer Teri Weingarden's office, in the wake of what supervisor Michele Economou Ureste called a "financial crisis".

Officials on Monday voted to broaden the scope of an investigation by attorneys at Johnson & Rosatti to include "irregularities in the Treasurer’s office". Trustees in July asked the firm to provide a legal opinion about whether proper paperwork was filed authorizing the treasurer and deputy treasurer to conduct banking transactions. 

The problem that may affect the year-end audit and bond rating involves hundreds of cash transactions that have not been posted. Shaughnessy described it as using a debit card throughout the month without collecting receipts, then trying to reconcile a bank statement at the end of the month. 

"Only in West Bloomfield, we're talking about millions and millions dollars that are unaccounted for," she said. "We have funds that are in negative balance. If we go into the end of the year with a negative balance, we will be written up in our audit."

Ureste said she is particularly concerned about the upcoming sale of bonds that are expected to reduce the township's unfunded retiree benefit liabilities. 

Weingarden objected to extending the investigation without seeing results from the original request, but trustees said the information would be included in the expanded report, which is due Nov. 18. 

Trustees also voted to change the way cash transactions are posted, so that Weingarden will submit copies of receipts and Shaughnessy's office will do the actual posting. Shaughnessy said her department has had to correct numerous errors, including two duplications that amounted to a $3.8 million mistake.

Weingarden said she warned trustees that problems would arise because of delays in allowing her to fill an open cash management position. She asked for approval of a contract "not to exceed $15,000" to hire an accountant who would help resolve the situation. Trustees denied the request and urged her to immediately fill the cash manager position.