Audit faults David Soares office
July 24, 2008
Albany County District Attorney David Soares’ office has shown a “total disregard for fiscal management,” placing more than $351,000 into the wrong account and overpaying victims of a crooked jeweler by hundreds of dollars, according to a scathing audit from County Comptroller Michael Conners.
The report, obtained by the Times Union, delved into a petty cash fund operated by Richard Arthur, Soares’ director of administration and one-time spokesman. The findings slammed his fiscal work, saying it “could jeopardize the overall mission” of Soares’ office.
Among its many revelations, the audit said Soares’ office billed the county for more than $1,000 in claims with receipts missing.
“In over 130 petty cash audits during the past 12 years,” the report stated, “our office has never encountered the problems with basic bookkeeping, accounting and petty cash account management that the director of administration for the office of the district attorney presents.”
The report also said Arthur inappropriately placed a check for $351,117 into the petty cash fund following a March 2007 judicial order. The money was restitution to the dozens of victims of Colonie jeweler Peter Spinelli, who pleaded guilty to grand larceny in 2006 after stealing jewels from customers.
But the audit said the amount was miscalculated, resulting in an total overpayment to victims of $804.76.
“The use of the wrong factor while attempting to determine the balance due resulted in every check being issued for the incorrect amount,” the report stated.
The petty cash fund, a $5,000 pot, was $850.64 over that amount in April, the audit found. As a result of the findings, the audit recommends the Albany County Legislature suspend Soares’ petty cash account “until someone capable of administering this account is in place.”
Conners also suggested Arthur no longer handle the books and that Soares consider “replacing, removing or transferring” him.
“(Arthur) has demonstrated a total disregard for fiscal management, a complete lack of compliance with county guidelines for the use of petty cash funds and exhibits a sense of entitlement that is dangerous to the fiscal matters of the district attorney’s office,” the audit stated.
Arthur, a member of the Working Families Party, was initially hired as Soares’ communications specialist, a role now handled by spokeswoman Heather Orth.
In a response included inside the audit, Soares’ office informed Conners that the summary of his report had errors and was “baseless.” It also said “funds are not being misappropriated.”
But Soares, up for re-election this fall without an opponent, on Wednesday said he takes responsibility for the “goings on in my office.”
“I have read the findings from the comptroller’s audit,” Soares said of the report. “There are things I don’t agree with, but others that I do.”
Soares pledged to take the “necessary steps” to ensure the petty cash fund be properly managed.
He said Conners’ recommendations would be addressed. The “most glaring” finding was the misplacement of the restitution money, Soares said, adding he did not believe any victims were overpaid.
In the response, Soares’ office told Conners: “Probation normally handles these kinds of funds. However, they charge a handling fee.
Source: Times Union Read the complete article here
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