Based on a request placed in the township’s RFP, The Whall Group included the following comments in their report to the board:
With regards to the board of trustees, the audit reveals that ?’it appears that Township policy was violated when investments failed to preserve principal, and when investments in mutual funds were placed before this was an authorized investment.?
With regards to the township treasurer, Alice Young, the audit reveals that ?’investments in mutual funds were placed between February 2005 and June 2005, before this was an authorized investment.?
With regards to the township clerk, Jill Bastian, the audit reveals that ?’the clerk states that she had all of the relevant documents reviewed by the Township Attorney prior to signing the documents and prior to passing the documents on to the Township Supervisor. The Township Clerk states that she relied on the Township Attorney’s advice that the Agreement with Invescor Advisory Services, Inc. was a ‘disclosure? and not a contract.?
With regards to the township supervisor, Jerry Dywasuk, the audit reveals that ?’the supervisor stated that he routinely signs documents that are presented to him by the Township Clerk without reviewing or questioning the documents. The Township Supervisor assumed that as in past practice, the Township Clerk had reviewed it in its entirety and gotten the approval from the Township Attorney and Township Insurance Agent.?
With regards to the township attorney, the audit reveals that ?’the attorney stated that she never received the faxed information regarding the Agreement with Invescor Advisory Services, Inc., from the Township Clerk. It is noted that there is some obvious confusion as to the relationship of the parties to the investment transactions??
The audit also notes that ?? it appears that the Assistant to the Township Supervisor (Jill Verros), along with the Accounting Coordinator (Barb Armstrong), was instrumental in bringing the loss of principal to the Supervisor’s attention. It is clear that the Assistant to the Township Supervisor had concern regarding the investments? What is not clear is why the Assistant to the Township Supervisor did not feel that she could bring this matter directly to the attention of the Board of Trustees if she felt that the Township Supervisor would not do so.?
The audit also addresses concerns about the need for a separate audit relative to the Financial Planning/Investment agreement and the ensuing investments by the treasurer. ‘Concern has been raised that the Board of Trustees did not make an informed decision at the time that it approved the entering into the agreement with Ms. Diane Young for investment advice. Concern is also raised that there is an impropriety or the appearance of an impropriety by virtue of the fact that Ms. Diane Young is the daughter-in-law of the Township Treasurer,? the report reads.