FOR IMMEDIATE RELEASE
January 29, 2019
Contact: John Lyon 845-638-5645

Rejuvenated Office of Community Development

New City, NY – County Executive Ed Day is releasing the results of the 2017 Forensic Audit of the Rockland County Office for Community Development (RCOCD). The audit analyzed Community Development programs and funding transactions from January 1, 2009, five years before County Executive Day took office, through December 31, 2016. This Forensic Audit was released by the County Executive to the County Legislature last year.

"Coming into office, we knew that County Government was broken," said County Executive Ed Day. "Besides the deficit we inherited, the Office of Community Development was one of the biggest problems we have had to clean up. This Forensic Audit is being released now, because only now does the RCOCD have the proper management and staff in place to be run properly. I want to make it clear that the issues in this report of RCOCD predate my Administration."

At the request of the County Executive and on the advice of the County Attorney, Thomas Humbach, the County of Rockland hired Baker Tilly, a well-known full-service accounting and advisory firm, to conduct the audit.

According to the audit their investigation, "identified several occurrences of inappropriate activities within the programs managed by the RCOCD. We reviewed program administration and record keeping, and documentation controls and identified that proper documentation was not obtained for all funding transactions. We also could not determine, based on a review of RCOCD files, whether all funding transactions were made for eligible activities and/or in accordance with HUD rules and regulations."

The audit made the following recommendations to help improve the operations of RCOCD which have been implemented:

• Develop clear written policies for each loan program.
• Designate an individual in charge of training who is knowledgeable in all program rules and industry regulations.
• Establish and maintain adequate loan files and records in a matter conducive to an audit.
• Hire professionals with strong accounting backgrounds to review contracts and loan documents.
• Hire professionals with strong legal backgrounds to ensure compliance with applicable laws and regulations.

"This audit showed us the affirmative steps we needed to take to protect the funding that goes to many projects that benefit low and middle-income earners throughout Rockland," said Day. "Since taking office I have made it a regular practice to conduct audits like these; continuing to implement private-sector ideas and practices to improve services."

Day credited, then Acting Commissioner, Dr. Penny Jennings with beginning to uncover issues in the Department after no action had been taken by the previous Commissioner or the prior Administration, "it was then Acting Commissioner Dr. Jennings and former County Auditor Robert E. Bergman who were in contact with former Rockland County District Attorney Thomas P. Zugibe in October of 2016, regarding Community Development Loans. Dr. Jennings, Mr. Bergman, and I met with the HUD Inspector General in November of 2016."

"At the same time that the County's Legislative Majority was refusing to create an Office of the Inspector General, this County was in need of a strong hand to do the hard work of detecting and identifying improper financial and management practices. As County Attorney, I advised the County Executive, and by his authority undertook to examine the spending and practices of RCOCD. Some of the findings are disturbing and, as of May 2018, have all been reported to the District Attorney," said County Attorney Thomas Humbach.

"Having improved the internal policies and procedures and hired staff who can ensure proper practices, RCOCD can now move forward with confidence to maximize the benefits of its programs and better serve the people of Rockland County by rebuilding our neighborhoods and municipal facilities," concluded County Executive Day.

DOWNLOAD: Baker Tilly RCOCD Forensic Audit Report

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