Albany Times Union (Sunday)

Audit blasts financial reporting

State comptrolle­r alleges city of Rensselaer to be years behind, with gaps in record keeping

JIM FRANCO/TIMES UNION

Men of Faith perform on Gospel Night of the New York State Black Arts and Cultural Festival on Friday at the Empire State Plaza in Albany. Left, The Sweet Pilgrim Missionary Baptist Church Dance Ministry performs Friday.

RENSSELAER — The state comptrolle­r’s office released a scathing report on the city of Rensselaer Friday, describing long-overdue financial reports and gaps in financial transactio­ns after auditing the city from August 2016 to September 2022.

The report added further friction between Republican Mayor Michael Stammel, who directed some blame on the past administra­tion and the Common Council, and Democratic council President John DeFrancesc­o, who called for further financial scrutiny of the mayor.

According to the report, the city filed its 2016 to 2017 financial report over four years late, while reports for the following four years were still not filed when the audit was completed. Other records such as bank statements and independen­t audits were overdue and there were discrepanc­ies in fund transfers ranging from $266,560 and $2.2 million, the report said.

Tracking expenses and revenues was further muddied by entering some in the city’s accounting software and others in independen­t systems. One bank account had $2.9 million less than the accounting records noted, possibly in part due to an estimated $2.3 million in unentered payroll, the report said.

None of the city’s 18 active capital projects were closed out during the audit period. According to the report, both the Common Council and mayor said they were unaware they needed to pass a resolution to close them. Stammel also did not provide an annual report. He told the Times Union he provides budget updates when the council meets twice a month.

The report notes the city has both a treasurer and a comptrolle­r — a position created by the Common Council in 2014. The city had three different comptrolle­rs during its auditing period, including one who resigned within months of Stammel’s first term in 2020 amid revelation­s that the city was years behind on

financial reports and another who Stammel fired and had escorted out of city hall by police.

Stammel said Saturday he is currently out of the office and hadn’t yet read the report, but was prepared to fulfill its recommenda­tions.

In a letter from last July included in the report, Stammel said the city in general agreed with its findings, but was playing “catch up” with financial issues from the previous administra­tion. He told the Times Union the city would submit its 2020 to 2021 report within the next few weeks and is expected to be up to date by next year.

“You can’t provide an adequate audit until you audit the prior years,” he said.

Stammel also said the Common Council has not yet submitted its version of the city budget, which was due Thursday. DeFrancesc­o said the council will submit its budget in the next two weeks and was delayed by Stammel vetoing some of their resolution­s.

“Make no mistake, this is a Mayor Stammel problem — not past administra­tions no matter how he tries to spin it,” DeFrancesc­o said in an email, adding that he was calling for a forensic audit of city finances under Stammel.

“He has inflicted enough damage in his two terms,” he wrote. “We’ll be bankrupt if it continues.”