Audit report still unfinished but is its shadow being cast over suggested changes to EDA processes?

Interim Executive Director John Anzivino opened his report by commenting that past EDA Budget formats. Photo and video by Mark Williams, Royal Examiner.

While the final result of a now five-month-plus annual audit at a soaring cost of over a quarter million dollars was again not ready for review and approval at the February monthly meeting of the Front Royal-Warren County Economic Development Authority Board of Directors, repercussions of that audit may have been present.

Interim Executive Director John Anzivino opened his report by commenting that past EDA Budget formats were “not what I would call standard budget practice”.

Consequently Anzivino, hired in the wake of the December 20 resignation of Jennifer McDonald, said he had “reconstructed your budget to a simpler format, a more understandable format but with more detail.”

Noting a plan he has developed to hire a permanent executive director by May 6 “if not sooner”, Anzivino forwarded a suggestion “that the board become more involved” in the budget process on the front end, rather just at the concluding stages.

He observed a past tendency to mix operational and capital expenditures in the EDA budget, telling the board “I have got your operational budget separated from your capital budget, from your debt service budget.”

Anzivino then suggested formation of a two-person board committee to review future budgets and budget reports prior to presentation to the full seven-member board. He suggested Treasurer Tom Patteson as one member; and after some discussion, one of the board’s longer-tenured members Greg Drescher, was nominated to be that second committee member. Patteson and Drescher were then approved for those appointments without a dissenting vote.

Following an hour-and-25-minute closed session, over an hour devoted to further legal consultation surrounding the EDA’s loan programs, debt and accounting services and the New Market Tax Credit Program, Anzivino recommended formation of a second committee to help screen applicants for a permanent replacement for McDonald as EDA executive director.

On a nomination by Ron Llewellyn, Vice Chairman Bruce Drummond and Ed Daley were selected to that committee.

See Royal Examiner’s video of the first half hour of the open meeting including Anzivino’s budget format suggestions and updates on Town and County projects, including Town work at the Royal Phoenix/Avtex Business Park site; and the post-closed session discussion of the new executive director search and process: