Audit Gives MGAP a Poor Rating

by Prosecutor SEE STORY Cloudy, Cooler Cloudy and cooler today. Oc- THEDMLY casional rain likely tonight, FINAL tomorrow and again Sunday. Red Rank, Freehold Long Branch EDITION Moniiiouili County9m Outstanding Home Newspaper VOL.94 NO.58 RED BANK, N.J. FRIDAY, .SEPTEMBER 17, 1971 TEN CENTS Audit Gives MGAP a Poor Rating By DORIS KULMAN threatened to shut MCAP down at the end of this month unless -They were unable to reconcile the interfund accounts purchase order system. "In most instances purchase orders it's satisfied by today that the Monmouth agency has taken due to lack of prior reconciliations and the Inadequacy of' are written after the merchandise has been delivered and the "The accounting system and internal controls of the Mon- significant steps toward those changes, MCAP's records. invoice received by the accounting department for payment." 'mouth Community Action Program, Inc. are considered in- MCAP Is broke, ¥75,000 in debt, .and needs $100,000 to pay -They were unable to determine a plant fund due to the Among the questioned costs was that for the leasing and adequate to safeguard the assets of the grantee, check the ac- its creditors and meet another two weeks payroll, deputy di- inadequacy of MCAP's records. operation of MCAP staff cars. curacy and reliability of accounting data, promote operational rector Wilbert C. Russell says. The auditors said they couldn't certify to the combined MCAP leased 21 cars at an approximate annual cost of efficiency and encourage adherence to prescribed manage- Its creditors include the Internal Revenue Service, to statement of revenues and expenditures because: ment policies." $37,800, the auditors said. They said two of the cars - those which MCAP owes $65,000 in overdue payroll taxes. Mr. Rus- -They couldn't verify the time records of the neighbor- used by Mr. Russell and MCAP executive director Joseph E. That's how the auditors summarized their observation of sell has acknowledged the agency used the $65,000 - deducted hood service and day care centers for the payroll periods list- Taylor - were equipped with radio telephones which-cost • the fiscal operations of MCAP, the county's official antipo- from employes' paychecks for income taxes and social secu- ed. ' $1,900. : verty agency, for the fiscal year ending Aug. 31,1970. They un- rity - to meet the payroll. -They couldn't verify $58,000 of expenditures' other than "We question these costs, particularly the costs of the radio derlined the word "inadequate." MCAP gets 2.5 million a year in federal funds. personnel costs due to missing documentation. telephone as being excessive," they said. The audit was prepared by the firm of Hauser, O'Connor In their report, the auditors said they couldn't certify to Records Missing Last March, Mr. Taylor defended the purchase of the car and Hyllnd, certified public accountants, of Paterson arid New the combined statement of assets, liabilities, surplus and fund In commenting on the costs they questioned, the auditors telephones as important in case there was a period of civil un- York City. It was delivered to MCAP last July 30. balances for these reasons: said a substantial number of employes' time records were rest and because the agency serves a 600-square-mlle area. Changes Ordered Reasons Told missing. "... because of the poor method utilized in con- In a management letter dated last July 30 to MCAP board In part because of that audit report, MCAP's parent, the -rThe absence of a certified audit for the prior year. trolling employes time records, we feel it necessary to make a chairman Mrs. Julia Wheeler, the auditors noted that the federal Office of Economic Opportunity, has ordered sweeping -The audit of MCAP's #iree delegate agencies wasn't cer- general disclaimer regarding personnel costs," agency was in the process of selling the car radios. fiscal, administrative and program changes. The OEO has tified. The auditors said that MCAP doesn't have an operating s»» MCAP, Page z Area Bank Okays Link WithUnion Finn Soon By JANEFODERARO Combined resources would bank that gains for relatively that the merger will take ef- be approximately $325 million. few stock holders. In the case fect at the close of business • MIDDLETOWN - A new The merger would repre- of the Keansburg-Middletown Dec. 31,1971. It is subject, to name in banking will come to sent a major breakthrough in bank, stock is held by less „ approval by stockholders of Monmouth County with Monmouth for the Union than 100 stock holders and is the two banks and by the bank merger of the Keansburg-Mid- County Trust Co. which acti- r seldom, if ever, traded. supervisory agencies. dletown National Bank and vely has been trying to estab- The proposed terms of The Keansburg-Middletown the Union County Trust Co. of lish operations in the county merger provide that stock- bank, with assets of $78 mil- Elizabeth. for more than a year and, at holders of Keansburg-Middle- lion, operates six banking of- Directors of both in- present, has a branch in Ea- town will receive for, each • fices in these two commu- stitutions have approved a tontown, share of its stock 2.6 shares of nities while Union County ' ResMer Staff Photo plan for merger under the Career Is Ending stock of Union County Trust Trust has 16 banking offices in JUDGES HONORED —The Monmouth Bar Association, meeting at Squire's Pub, West Long Branch, banner of United Counties It also ends .the career of on a tax-free exchange basis. Monmouth, Somerset and last night honored County Court Judge Louis R. Aikins, l«ft, who last year became a judge; Superior Trust Co. yet another small, lucrative The agreement anticipates Union Counties. Court Judge Francis X. Crahay, who became county assignment fudge, succeeding the late Superior Plan Is Hailed Court Judge Elvtn R. Slmmill, and Superior Court Judge M. Raymond McGowdn, who was transferred - William',0. Johnson Jr., ex- to the Chancery Division. Congratulating the judges is William T. Wichmann of Red Bank, association ecutive vice president of the president. Keansburg-Middletown Na- tional Bank, yesterday hailed **, the proposed merger as "good fiir .everyone — customers, employeesand stockholders." Edison Policeman Dies •In a statement, his father, William C, Johnson Sr., president,said that the merger will provide a broad spectrum of In Shootout During Tlieft services and higher lending limits. He said local customers would benefit from trust, By CAUSEWELL VAUGHAN condition with a chest wound. csik said, but one of the em- fice so swiftly their ear struck data processing, dealer bond EDISON (AP) - Two po-* The FBI identified the hold- ployes managed to trigger a the building, smashing a win- and business development de- licempn in a patrol car were up man as Christopher silent alarm before the bandit dow. Kenny followed on his partments of the merged shot and one of them wounded Francis McCarthy, who es- ordered all three to lie down own motorcytle. bank. fatally by a robber here yes- caped last May from the Ohio behind a partition. Milcsik said the bandit' terday. State Penitentiary in Colum- The silent alarm to police apparently was leaving the The junior Mr. Johnson said bus where he had been his bank has considered a The bandit also was fatally headquarters alerted Patrol- building at the same time. A shot either by guns of the serving a life sentence for men Papianni and Gorman Shootout followed, he said, merger "for a number of first degree murder. months, even years." two or by an off-duty patrol- who were in their patrol car with both Papianni and Gor- He stated: "We have had man, police said. They said Police Capt. Raymond Mil- about 800 feet away in the man firing their weapons. offers before. But this is the that about $12,000 he had tak- csik said McCarthy entered shopping Center talking to off- Kenny also drew a gun he car- best by far - for everybody." en at gunpoint from the First the loan office about 1:30 p.m. duty Patrolman James Ken- ried and fired from behind the Federal Savings & Loan Asso- when two women employes ny. They sped to the loan of- patrol car at the bandit. Mr. Johnson commented on ciation of Westfield at the and the office manager were - - Register Staff Photo the current national trend of Menlo Park Shopping Center on duty. MERGER PROPOSED — This is one of six offices operated by the Keans- large banks taking over small- was recovered. burg-AAIddletown National Bank which is to merge with the Union County er ones. "New York State will - Milcsik said McCarthy, who Mrs, Standish and Buffy Trust Co., Elizabeth. Combined resources will be approximately $325 mil- begin statewide banking prac- was well dressed, handed a lion. tices in 1976. And I believe Patrolman Frank Papianni, note between two dollar bills eventually it will come to New 32, died in surgery at a hospi- to one of the women asking —a Heartwarming Story tal two hours after the shoot- for.money, then flashed a gun. Jersey," he said. New Jersey Buffy and Mrs. Standish. banks now must merge within out. Patrolman William Gor- About $12,000 was given to man, 3G,.was listed in serious him in a manila evelope, Mil- They're a team now. And Buffy, a guide dog, has replaced districts. the hard white cane that Mrs. Standish had carried. Prosecutor Clears "We feel that there will be Mrs. Lucille Standish of Little Silver, is blind. It's been six to 10 major banks in New six years now.

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