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City Comptroller William C. Thompson Jr. today issued an audit that found that the Pomonok Neighborhood Center of Flushing made $178,530 in improper and questionable payments to employees.

“I am extremely troubled by these findings. The residents and senior citizens and children of Queens were unjustly shortchanged because much of the funds earmarked to benefit them were improperly paid to a few individuals,” Thompson said.

The audit, which was conducted in response to concerns raised by New York Assemblywoman Nettie Mayersohn, also uncovered a pattern of questionable vendor payments, improperly authorized checks, and unsubstantiated liabilities.

“I thank Comptroller Thompson for his quick and through action in response to my request for an audit of the Pomonok Neighborhood Center,” Mayersohn said. “I am outraged that people entrusted with funding intended to benefit the children of our community apparently abused that trust and used the funds as their own personal piggy bank.”

Pomonok provides after-school programs, senior activities, summer camp, crime victim assistance, domestic violence counseling, and housing assistance. During Fiscal Year 2004, Pomonok received funds through New York State contracts, including one with the New York State Office of Children and Family Services (NYSOCFS).

It also received a grant from the New York City Housing Authority (NYCHA), and five contracts totaling $597,165 awarded by the City of New York through the Department of Youth and Community Development, Department of the Aging, and Department of Housing Preservation and Development.

Auditors originally were analyzing whether Pomonok expended the funds received through City contracts, but widened the audit upon discovering a number of apparently improper salary payments. Auditors have since determined that Pomonok may have made improper payments totaling $83,037 to four employees.

“It appears that the youth program director attempted to systematically exhaust the personal service funds allocated for the youth programs by manipulating his own timesheets as well as the timesheets for his daughter, his live-in girlfriend, and his girlfriend’s son,” Thompson said.

“The youth program director hired these individuals in direct violation of Pomonok’s agreement with the Department of Youth and Community Development (DYCD); they reported directly to him, and he approved their timesheets.”

Additionally, auditors determined that Pomonok made questionable salary payments totaling $95,493 to other employees; made questionable payments totaling $24,469 to its vendors; received $2,250 in questionable payments from DYCD; did not properly authorize checks for City-funded programs; and, may not have conducted the required number of Board of Directors meetings.

Additionally, Pomonok misrepresented its financial status by overstating its liabilities by more than $700,000.

Thompson noted that Pomonok’s management structure significantly changed while the audit was being conducted. The Executive Director, Youth Program Director and Senior Center Program Director were fired during the summer of 2005. Also, Pomonok’s Board of Directors hired the Forest Hills Community Center to operate the facility.

The Comptroller recommended that Pomonok reissue financial statements for the year ending June 30, 2004 that correct the liability accounts. Additionally, the Forest Hills Community Center should:

• Ensure that employees are paid only for hours that are legitimate and payments are supported by timesheets that are approved by authorized personnel.
  
  
• Ensure that it hires only qualified personnel and prevents nepotism.
  
  
• Ensure that it is paying for only those items or services that it receives, and payments to vendors are supported by bills and invoices.
  
  
• Maintain bills and invoices that support payments to vendors.
  
  
• Ensure that only authorized personnel are signing program checks.
  
  
• Maintain minutes of all Board of Director’s meetings and ensure it holds the minimum number of meetings per year as required by its bylaws.

The Comptroller also recommended that DYCD, DFTA, HPD, NYSOCFS and NYCHA immediately investigate whether to pursue legal actions against the youth program director, his live-in girlfriend, his daughter and her son to recoup the possible improper payments made to them.

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