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Adelson: 'Help is on the way'
New York State Comptroller Tom DiNapoli is launching an audit of Long Beach’s finances next month, as the city grapples with a $10.25 million deficit and a credit-rating downgrade by Moody’s Investors Service.
On Monday, a spokeswoman for DiNapoli confirmed that the office intends to move forward with an audit in the coming weeks, a process that could take six-months to a year to complete.
“It’s our general policy not to comment about the specifics of an ongoing audit that is underway,” said Deputy Press Secretary Kate Gurnett. “Audits generally take about six months to a year to complete. They can take longer if it is a complex matter that we are reviewing.”
Gurnett said that City Manager Jack Schnirman, City Council President Fran Adelseon and City Council Vice President Len Torres recently called on DiNapoli to conduct the audit.
In December, Moody’s downgraded the city’s credit rating five levels — from A1 to Baa3, a step above junk bond status — and the agency is nearing the end of its 90-day review of the city that could result in a further downgrade.
Earlier this week, Schnirman said that the city is facing a $10.25 million deficit after the previous administration overestimated revenues but continued to overspend; was recently forced to dole out millions in unbudgeted termination payouts to retiring police officials and wiped out its reserve fund over a four-year period.
Schnirman said that the city must close an $8.75 million gap before the end of the current fiscal year in order to maintain city services and avoid a further credit-rating downgrade.
The state comptroller’s office last conducted an audit of Long Beach’s financial condition and payroll and personnel records for the period of July 1, 2003, to June 30, 2005.
In a letter to DiNapoli dated Feb. 21, Schnirman said that those findings proved useful to members of the City Council and new administration, who took office in January, and he requested a “full and thorough” base-line financial audit to help asses the city’s finances and internal controls.
