A Letter about Lakewood Finances

From a Friend of McHenry County Blog:

I appreciate all that you do to keep the public informed about the governmental actions within McHenry County and the surrounding areas.

As you have been reporting, things aren’t all rosy in the Village of Lakewood.

Have you read one resident’s review of the budgetary issues and general financial concerns outlined on https://www.unitedlakewood.com/news ? 

I wonder if we are about to have another Dixon when this all shakes out?

Almost 3 years ago, CAO Smith was the only candidate that then President Paul Serwatka brought forward and in order to pay her salary, he eliminated the position of Finance Director, effectively making CAO Smith the Village Manager, Finance Director, and the Budget Officer.

This gives her unprecedented control over the finances of the Village — and without proper oversight, could open the Village to a giant sucking sound of funds leaving the system.

So naturally, you’d expect that the board would do everything in their power to put that oversight in place

Well, the current Treasurer is the wife of a sitting board member and from all accounts has no accounting background.

The Village used to have CPA prepare the books — no longer, the books are prepared by the head of HR for the village despite the Village Code being clear that the books are the responsibility of the Finance Director. 

This is a similar recipe that led to Dixon — which while a shocking case, from my understanding municipal fraud isn’t all that rare.

It generally stems from lack of oversight, single control of the finances, and an overly trusting community ignoring the signs of issues. 

I encourage you to keep up the work to expose corruption at all levels of our government, but to never ignore the one closest to home.


Comments

A Letter about Lakewood Finances — 2 Comments

  1. I remember Serwatka eliminating the finance director George Roach.

    Right after Mr. Roach was caught red-handed in part of a scheme where village owned police cars were sold to private parties without bid for pennies on the dollar.

    I don’t believe the position was eliminated to pay Smith’s salary.

    Rather, the position was originally created by village manager Peterson, who wasn’t equipped to prepare budgets and levies.

    Just like Peterson also created the position of Asst. Manager to “lighten her load”.

    Serwatka’s move was innovative and quite brilliant, but, unfortunately, with no legitimate checks in place, (i.e., the new president being dishonest and unethical along with this new board of largely empty seat trustees) malfeasance, or worse, tends to rear it’s ugly head.

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