MYA Contract Details Finalized, Audit Required by Oct. 31

The Merrimack Youth Association has until Aug. 31 to engage an independent auditor in an audit of its finances, and until Oct. 31 for that audit to be handed over to the town, according to a three-year contract finalized by the Merrimack Town Council on Thursday night.

Though the contract itself still must be signed by the four members of the MYA Executive Board and Town Manager Eileen Cabanel, MYA President Terry Benhardt said there would be no surprises and the contract will be signed by his board.

“We are in total agreement to get the contract completed, signed and in full force by July 1,” Benhardt said following the meeting.

The audit is just one entry in the 26-point contract, much of which is the same contract that is signed year after year, but it is the one that drew the most attention after Councilors learned of a police investigation in 2012 into the possibility that money had gone missing from the coffers of the Merrimack Youth Baseball program in 2011.

The treasurer of the MYB at the time, who was investigated for mismanaging the funds and possibly embezzling some money from the program, was relieved of his duties during the investigation. He was never charged, though a letter from Assistant County Attorney Nicole Thorspecken attached the criminal report on file, says the person "likely withheld some money from MYB, however, proving that he intentionally stole the money (or had the intent to permanently deprive MYB of the money) will be difficult."

In light of this investigation, which concluded in November, Town Councilors decided to make some amendments to the contract between the town and the MYA, which exists as the town budgets a contribution to the youth sports program year after year.

According to the new three-year deal, the MYA will receive its $72,000 in four quarterly increments so long as it remains a contract in good standing.

The question of the audit received a few changes on Thursday night to put a better timeline on it.

After a motion with a couple of amendments, the Council accepted the contract with a couple last-minute changes to the audit language.

Number 17 in the contract says starting with the fiscal year that ends June 30, the MYA must have a completed audit to the town no later than Oct. 31 each year. The MYA is responsible for choosing an independent certified public accountant and in addition to a review of the organization's financials, the auditor will also evaluate the MYA's internal control procedures, which are to be put in place immediately. The MYA must engage an auditor no later than Aug. 31.

As such, this timeline must be followed in order for the town to release the next $18,000 to the organization.

Number 17 in the contract also says that Town Council has the right to ask for a forensic audit to be completed “if there are reasonable grounds to suspect irregularities in financial management, controls balances or oversight as determined by the independent auditor.”

No forensic audit is being requested up front.

Town Councilor Tom Koenig, who made the initial motion to change the audit language, said he thought the MYA should be responsible for making sure it is handled appropriately.

“They are a big boy if you will, they can handle their own issues. We have a level of oversight in that we require them to provide us those audits. We've been asking for those audits for, I don't know, the last five to 10 years... so I think adding this section to this contract, which is a three-year contract, just makes reasonable sense,” Koenig said. “I know there's been talk about forensic audits and stuff like that. I think to look into the past is probably inappropriately expensive. To go forward, if and only if the auditor suggests there's issues makes sense to me.”

Council Vice Chairman Dave Yakuboff, who last month told Patch he and others were livid over the fact that money hadn't been being accounted for and that no higher authorities seemed to think it necessary to investigate further, said he wanted to make clear that this is not an attack on the MYA.

"This has never been about stopping the kids from playing softball, baseball, football, soccer, that's not where this Council is going and I don't believe that. The whole idea is to get a snapshot in time and start with controls in place so that there are procedures now for running the MYA that will actually make the MYA stronger and better than what it was financially.”

Yakuboff said the intention was never to give a “black eye” to the volunteers in the MYA and there was never any intention to lock doors, shut down programs or keep anyone off the fields.

“You guys are held in high regard by the Council, I'm sure. The MYA group has a lot of volunteers and without those volunteers the MYA wouldn't exist,” Yakuboff said. "From this standpoint, it was the financial controls that this Council had to have in place because we are accountable for that money and it's taxpayer's dollars. I would like to thank the MYA for the fact that they don't let it bother them that it's just the one bad apple, because they got rid of the bad apple.”

Benhardt, who spoke personally with a couple of the councilors after the meeting, said there is absolutely no animosity between the MYA board and the town. He said it's time to move forward because this program is really about the kids and the volunteers who make the program possible.

“We're content and happy with coming to this agreement,” Benhardt said. “There's been a really good support staff on the the MYA side and the town side and we are ready to move forward.”