A few days ago, NY State Comptroller DiNapoli and Ulster County DA Nneji announced that Peter DiSclafani, our former supervisor, was arrested following a grand jury indictment. Peter was charged for improperly getting a $50,000 loan from Town funds. This news is deeply unsettling—for the Town workers, Board members, and volunteers subpoenaed to testify, for Pete’s friends and family, and for the public who puts its trust in elected officials. I understand the public’s feelings of anger, confusion and sadness. What I can say is that this is an indictment. There is still a trial pending, and then a verdict. In the meantime, there will be a period of discomfort as we all wait for those events to unfold.
I would like it to be known that in this limbo period, actions have been taken to reduce the Town’s future risk of unilateral financial transactions on the part of staff or elected officials. Since the NY State Comptroller started its audit of Shandaken finances in 2025 every Town worker and Board member that deals with financial documents has been thoroughly investigated, and only one person was accused of wrongdoing.
In 2024 the Board hired a company to do an internal audit, which yielded a report that suggested better financial controls. This year, we began implementing those ideas. Additionally this year, the staff went through extensive Comptroller training. covering topics ranging from the impact of delinquent Annual Financial Reports (AFRs) to policies Towns should adopt to minimize financial risk.
We have also successfully updated our accounting system. The new system syncs with bank accounts for more accurate and timely reconciliations (the first suggestion made in the internal audit). It also enables our accountants to do check-ups on data entered, and to fix issues in real time. The new system also addresses cyber security vulnerabilities the old system had.
While we have a new accounting system, our work is far from done. I am committed to bringing us up to the Comptroller’s standards and to restoring public trust. As part of these efforts, for the first time in Shandaken, I’m implementing a requirement for a counter signature on expenditures. While I cannot guarantee that this period of growth will be comfortable, I can guarantee it will strengthen our Town. Thank you for your patience.