Dear Editor:
At the last Town Council meeting, a resolution for accounting and auditing services passed and additional facts have surfaced for consideration by the citizens of Parsippany.
At that September 10 meeting, Councilman McGrath finally provided specifics on questions and concerns of the Mayor and Town Council. They question a demographic study the School Board recently authorized to obtain an estimate of future school enrollment in the Parsippany School District. The study is based on existing residences as well as potential new enrollment from future residential projects to be built now and in the future.
Mayor Barberio has tried to equate the role of School Board Members with his role as the Executive Officer of the Town and has observed he is Mayor 24 hours a day and can’t say he is speaking as a private citizen. Board members have no executive authority and no individual Board member has any power without the rest of the School Board in session.
The Town Council passed a resolution to hire DiMaria & DiMaria, LLP. While the Town Council is not required to get competitive bids, it is not clear the firm has expertise to add value to a review of a demographic study which is an estimate of the future.
As private citizens, members of the Board of Education strenuously objected to this resolution. Since the Mayor was so vague, it was assumed the scope of the review was the financial statements of the School District which are already audited, are completed on time and consistently receive an unqualified opinion with no internal control issues. Without a specific reason for doing so, a formal review of a financial audit is highly irregular.
The hired firm seems to operate out of a residence in Lodi and appears to be spelled De Maria & De Maria LLP which differs from the resolution which says the town is hiring DiMaria & DiMaria LLP for accounting, auditing and consulting services. DiMaria & DiMaria LLP appears to be a law firm. This discrepancy should be clarified.
Further, this firm appears to have accepted an engagement in the past for which it had no expertise. In 2013, the Borough of Lodi put out Frank DeMaria as an expert witness on “utility rate-making and water utility operations” despite his having no experience in a utility nor being a member of any professional association that relates to utilities. No disrespect is intended toward Mr. DeMaria who apparently specializes in taxation. However, that background does not provide assurance on demographic studies. It may be questionable professional judgement to accept an engagement for which one is not prepared.
In securing a new vendor, it would be prudent for the Mayor and Town Council to consider the vendor’s experience. There is no apparent evidence that the hired firm has expertise in demographic studies. That is not meant to be derisive to the selected firm; it’s just not something that accountants generally do.
Jack S. Raia
The author is a Certified Public Accountant and has nearly 24 years of Senior Corporate Financial Management experience.The author is a Certified Public Accountant and has nearly 24 years of Senior International Corporate Financial Management experience.
