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Village board directs finance committee to probe $188,000 Celebrations account

Vernon Village Board · August 2, 2024
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Summary

Trustees pressed for clarity after a Celebrations subcommittee reportedly opened a separate account with about $188,000 and past attempts to formalize the committee via ordinance failed; the board directed the finance committee to review authority and accounting practices.

Trustees asked for a formal accounting and possible ordinance after a Celebrations subcommittee reportedly deposited about $188,000 in a separate account outside the village clerk’s office.

A committee member raised the concern during public discussion, saying: “I'd like to know, whose authority did Celebrations have in regards to depositing a $188,000 into a separate account that is not authorized by the village?” (Committee member, speaker 8). The board heard that the account’s signers were a former village president and former village clerk and that the account had not been established by this board.

Another trustee called the arrangement “a fraud with all sorts of potential problems,” and urged clarification of the group’s legal form and relationship to the village. A resident (speaker 11) added that “No one in the village has the ability to touch any of that money or move any of it. There’s no accountability in our office.”

Board members recounted prior efforts to draft an ordinance to place Celebrations under village oversight; past drafts and a prior attempt to adopt such an ordinance reportedly failed. The board’s attorney and other trustees noted that the relationship has been discussed before but never finalized.

Chair (speaker 1) recommended the matter start with the finance committee so members could “identify what this relationship is, what we’re going to need prospectively, and have some sort of methodology to account for funds, maybe past and present.” Several trustees agreed the finance committee should review accounting records, clarify signatory authority, and, if necessary, return with an ordinance or a recommended control structure.

The board did not adopt an ordinance at the meeting. Trustees asked staff to invite the relevant individuals to explain the account and to provide documentation to the finance committee for review.

What happens next: The Chair asked that the finance committee take the lead in investigating the Celebrations account, review past and present accounting, and consider drafting or reintroducing an ordinance to clarify the committee’s authority and oversight. The board set no formal deadline at the meeting.