KINGSTON – An independent audit of the Kingston Local Development Corporation shows the agency is improving its operating procedures, Mayor Shayne Gallo announced Monday.
Gallo said when he came into office four years ago, he wanted to correct deficiencies in the way it was run.
“The reason for this audit is because we changed auditors, we changed consultants, and we retained counsel to go after the defaulted portfolio debt of the federal 108 loans and we weren’t in compliance according to federal and state law and regulations and many accounting practices in respect to our financial statements,” the mayor said. “When I became president of the board when I was sworn in four years ago as mayor, to that end we continued the minority representation, we put on another CPA and banker; there wasn’t a banker on the board until that point.”
Gallo said the city will have to pay the KLDC back $150,000 for street
repairs and $50,000 to repair the steps on City Hall, funds that were
not on the approved list, but where nevertheless expended.
