Aldermen consider freezing city spending

Working without a financial audit since 2017, Philadelphia Ward 1 Alderman Justin Clearman during Tuesday’s Mayor and Board of Aldermen meeting called for a freeze on city spending except for essential needs.

The move came after questions about a backlog of city audits were put on hold as City Clerk Nikki Walton was absent due to a family illness and Clearman decline to approve the city’s claims docket.

The city of Philadelphia has not completed audits for Fiscal 2018, 2019 or 2020. The city recently received a copy of a recently completed 2017 audit.

The Pearl accounting firm of Windham and Lacy was hired earlier last meeting to catch the city up on audits.

“I’m one vote but I feel until we get our audit together, we need to freeze any unnecessary spending,” Clearman said. “Until we know what we have, I don’t feel we should spend money on anything but the essentials.”

Aldermen discussed exactly what essentials were.

“Gas, salaries, that stuff has to be paid for,” Ward 2 Alderman Jim Fulton said. “Things like that have to be paid for.”

Clearman said the department heads know what is essential and aldermen need their input.

No action was taken. Each alderman will make their own list before the next meeting on Oct. 19. They will combine those lists and will consider taking action on limiting city purchases then.

Clearman requested representatives of the new auditing firm appear before the board at its next meeting on Oct. 19. Mayor James A. Young said auditors will be at the next meeting.

“They have been hired for two weeks,” Clearman said. “Where are they? What are they looking at? What is their plan of action for getting us caught up? The audit is the No. 1 thing for me. I think we are being a little nonchalant about this audit. That is my feeling.”

Earlier in the evening, Clearman voted not to approve the claims docket. Walton was not present, and Clearman could not get an answer about one of the expenses to his satisfaction. He indicated he may not be voting to approve future claims dockets until the city is caught up on its audits.

Clearman, Fulton and others also requested a monthly financial report, showing expenses, where the city stands on its debt and where each department is standing on its budget spending.

“I would think we should already be getting this,” Clearman said.

One expense all agreed that was essential was the purchase of MSWIN radio systems for the police and fire departments. Fire Chief Pierce Clark said his department was down to one radio and they “were one lightning strike away from having to make an emergency purchase.”

The vote was 5-0 to purchase the police system for $90,000 and the fire department system for $130,000. Plans were to order those systems this week.