(FRANKFORD, Del.) - The Town of Frankford is under the spotlight after an audit report for fiscal years 2014-2016 was released Monday suggesting "inappropriate activity" within town transactions.
Some of the issues addressed in the 17-page report from the Office of Auditor of Accounts (AOA) stated Frankford had a lack of internal controls, was non-compliant with the town charter, and lacked any formal policies and procedures surrounding financial transactions.
"There were some allegations raised from the residents of the town about possible malfeasance and misappropriations of funds," said Marty Presley, town treasurer since September 2015. "So, I and the council decided at that time to request a formal audit from the State of Delaware. After 2008, we felt it was necessary they come back and take a look at things again."
According to the AOA, a similar report with the same recommendations was made in 2008. The report then states "the Town of Frankford continues to lack processes to provide assurances about the accuracy and integrity of its budgetary and accounting records." The report then went on to say "While our work did not identify blatant examples of fraud or abuse, it is possible that inappropriate activity occurred and was not detected, particularly when dealing with cash transactions."
In addition, state auditors found "numerous discrepancies" in how the town handled payroll transactions. For instance, employees were paid for holidays not included in the town's policy. The former town clerk and police chief together were also overpaid more than $13,000 since Fiscal Year 2014.
When asked how the town managed to get away with this for so long, Presley said the town was previously run by a married couple, Jessie Truitt (former Council President) and Terri Truitt (former Town Clerk). Both resigned in September 2015.
"For the last 15 years, we've had a husband and wife team that basically ran the town. The town clerk was in direct report to the council president, and there wasn't very much involvement from the rest of the council in that point in time," said Presley.
Presley says in addition to the state audit report, an audit report is made every year by a Frankford accountant. He says a management report is then issued, which summarizes what the accountant found; however, Presley says those management reports were never shared with any of the council members other than the council president and town clerk.
"There was really no way of knowing what the problem was, and if the council president and town clerk weren't willing to address it, then it just went on year after year after year," said Presley.
Moving forward, Presley is more optimistic about Frankford's future. Presley says the new town council has already instituted about 90 percent of the recommendations from the state auditor.
"We've done a much better job at delegating responsibilities to each council member as opposed to having just one council person oversee everything. We've shared the financial obligations with each council member, and we're trying to bring a budget process that is extremely transparent and more accurate and we'll be following that up on a monthly basis," said Presley.
Residents can check out the town's new budget on their website at frankford.delaware.gov.