Press Release from Ward(s)  12
Date: May 7th, 2009
For information, contact City Council Office, 521-7477

Council to Consider Ordinance Requiring Treasurer to Verify all City Expenditures
Law would ensure all City payments are authorized by Council appropriation

A new ordinance would require the City Treasurer “to verify that all City expenditures are specifically authorized through an appropriation by the City Council,” according to Council Majority Leader Terrence M. Hassett, Ward 12, one of the eight sponsors of the ordinance. The ordinance will be introduced at the Thursday, May 7th Council meeting.

 

As proposed, the ordinance requires the City Treasurer to confirm that all expenditures are authorized through an appropriation by the Council, specified through a duly approved appropriations ordinance, before any disbursement of City funds. Hassett said that the new City law would “strengthen the role of the City Treasurer and more clearly define the Treasurer’s responsibility to the City Council as its financial officer and watchdog of the City’s Treasury.”

 

According to Section 602 (b) (2) of the Providence Home Rule Charter, the City Treasurer shall “review the decisions of the Controller as to the sufficiency of funds, before approving payment of any bill, payroll or other claim, demand or charge against the city.” The proposed ordinance requires further scrutiny by the City Treasurer to verify that the expenditures were actually authorized by the Council.  The ordinance also requires the Treasurer to review all appropriations ordinances, and upon review and examination, certify that all expenditures and other disbursements have been specifically approved by the Council, by ordinance. Failing that test would result in a payment not being approved by the Treasurer.

 

Current City procedures require that, when requests for payment are presented, an account number must be identified by administrators.  The new ordinance would require that the Treasurer verify that there are funds properly approved by the Council, in the account identified, for the purpose cited by City administrators.

 

“The Treasurer is one of several people fundamental to the approval process for the disbursement of City funds,” Hassett said.  He noted that the Treasurer is selected by the Council to review the financial decisions of City administrators, and to verify that City funds are being spent in a manner approved by the Council.

 

Hassett observed that recent expenditures, such as the retroactive payments to police commanders, funding of an audit of the City Collector’s office regarding the handling of a faulty check for a delinquent tax payment, and the hiring of a Washington lobbyist, have raised concerns of “spending without authorization from the City Council.

 

“By law, the Council must approve these expenditures,” Hassett said.

 

The ordinance’s other sponsors include Council President Peter Mancini, and Councilmen John Igliozzi, Nick Narducci, Leon Tejada, Luis Aponte, Joseph DeLuca and John Lombardi.