New York State comptroller Thomas DiNapoli is conducting an audit of the city of Long Beach, which declared a fiscal emergency last month and faces a $10.25 million deficit.
“Under the prior administration, in certain departments, there were some questionable practices in terms of the receipt of funds,” Long Beach City Council member Scott Mandel said in a statement.
“Given the inherited fiscal crisis, we requested this audit to examine exactly what has been going on and what reforms should be undertaken,” he said.
The city of about 33,000 residents is located on Long Island in Nassau County.
The audit will focus on “policies and procedures related to internal controls over cash transactions in various summer seasonal departments,” according to the statement.
In December Moody’s Investors Service downgraded the city to Baa3 from A1, the lowest investment-grade rating, and cited its deteriorating financial position since 2008.
The rating agency on Thursday said it is still reviewing the city for possible downgrade because of a projected deficit and deteriorating cash position.
Jack Schnirman, who became city manager in January this year, says he is excited to receive help from the comptroller.
The state will be examining cash receipts, journals, ledgers and bank statements and is expected to begin its audit in the near future.
