Point Boro: Financial Statements "Worthless"

Point Pleasant Borough doesn't know how much cash it has since last year's financial records didn't account for at least $341,000 in possible revenue and expenses, council members say.

"The financial statements in 2010 are worthless," said Chris Leitner, Point Pleasant Borough councilman.

Leitner, speaking at council's Tuesday meeting, said the number could be higher, and that the borough has no idea how much of that money should be listed as expenses or identified as revenues.

Point Boro officials said they expect that the poor accounting will not have an impact on the $23 million municipal budget and the local tax rate.

"We're not missing $341,000 — we just don't know where it fits within the framework," he said.

The council has agreed to pay its former auditor, Kevin Frenia, at least $40,000 to review the books and determine how much money it has — or doesn't have.

"We need oversight to make sure this doesn't happen again," Leitner said. The council has uncovered financial records with line items that were crossed out for unknown reasons, Leitner said.

"From August to December, it's as if random numbers were placed on paper," Leitner said.

Leitner pointed to a website picture of the borough's financial records that were kept under Judy Block, Point Pleasant's long-time chief financial officer. The picture is posted on the popular local watchdog site, http://animallovertoo.com.

Leitner emphasized that the borough and the auditor do not suspect any wrongdoing. "It's horribly sloppy bookkeeping," he said.

Leitner said it's possible that the glitch occurred in August 2010, around the time the borough administration changed the computer system that collects financial data.

Council is searching for a replacement for Block, who recently retired from the position. Block, the widow of the late Councilman Alan Block, appeared at the meeting but did not comment.