City Comptroller Bill Thompson announced just now that he is gong to audit all member items from the City Council. This comes in the wake of the secret slush fund that was recently discovered to have been used by Speaker Christine Quinn to mask expenditures.
The letter, dated today, says:
As a consequence of this distortion of the City’s budgetary process, I am taking a number of actions. First, my office will require all agency agreements that are funded by City Council discretionary monies, regardless of amount, be reviewed by the Comptroller’s office before any funds can be disbursed. Second, my office will direct the City’s auditors, Deloitte and Touche, to independently audit the Council’s discretionary fund budget process upon the conclusion of the ongoing investigations by outside entities.
Quinn is having a press conference on East 12th street about an agreement she reached with the mayor’s administration about senior services, but will probably face more questions about the Council’s finances and this audit.
Here’s Thompson’s whole letter:
The Honorable Christine Quinn
Council Speaker
City Hall
New York, New York 10007
Dear Speaker Quinn:
I write regarding the recent events implicating the Council’s use of phantom organizations as a means to allocate City Council discretionary funds including member and line items (“discretionary funds”). I am aware that a number of agencies are reviewing this matter in an effort to fully ascertain and address the circumstances of this lapse. It remains clear however, that the Council’s process was conceived and used to deflect legitimate inquiry into how our City’s tax dollars are being allocated.
As a consequence of this distortion of the City’s budgetary process, I am taking a number of actions. First, my office will require all agency agreements that are funded by City Council discretionary monies, regardless of amount, be reviewed by the Comptroller’s office before any funds can be disbursed. Second, my office will direct the City’s auditors, Deloitte and Touche, to independently audit the Council’s discretionary fund budget process upon the conclusion of the ongoing investigations by outside entities.
In addition, I strongly urge that the City create a specific budget category for all discretionary funds identified by the City Council. The City Council’s Schedule C, which itemizes all organizations and programs that the Council is funding, should also be made publicly available prior to the adoption of the City’s budget. Finally, any shifts in funding during budget modifications should specifically describe discretionary funded items.
It is my expectation that the current investigation of this matter, combined with the budget actions I am enacting and recommending, will strengthen budget transparency and help restore trust and confidence to our City’s residents.
My staff and I remain available to work with you and our to achieve these necessary reforms.
Very truly yours,
William C. Thompson, Jr.
c: Hon. Michael R. Bloomberg
