Audit case closed
V’ville, Marturano reach a settlement


VOORHEESVILLE – A "neutral" settlement has been reached between the Voorheesville School District and the former assistant superintendent for business, Anthony Marturano, said Superintendent Linda Langevin this week.
Both parties, she said, "agreed that it would just be settled."
The settlement marks the end of two civil suits – one filed against Marturano, and the other against former Superintendent Alan McCartney – in response to allegations released in a January, 2006 audit by the office of the state comptroller that the retired administrators "inappropriately" paid themselves $216,000.
When former Comptroller Alan Hevesi held a press conference to announce the results of the audit, then school board President Joseph Pofit expressed "outrage" on behalf of the entire board, which filed civil suits against the two men the same day, in an effort to recoup the funds.
An investigation by Albany County District Attorney David Soares’s office found no grounds to prosecute the men. Soares said the school district’s "weak internal controls" are what likely led to the problems.

A second audit released in November of 2006 found that McCartney had charged nearly $12,000 to the district for personal expenses. Marturano was not implicated of wrongdoing in that audit.

A settlement was finalized with McCartney in late March; he paid the district $40,000.

Marturano, accused of collecting $89,069 over 11 years of employment, has consistently asserted his innocence to The Enterprise, while McCartney consistently declined comment.
"I cannot say in strong enough terms, I did not do anything improper," Marturano told The Enterprise following the release of the 2006 audit findings. "I’m shocked and surprised by the whole thing...My good name is now mud.
"Dr. McCartney and I were devoted to that school," Marturano told The Enterprise earlier from his home in Port St. Lucie, Fla.

Marturano could not be reached for comment this week.

Board members took no responsibility for approving many of the payments – largely for unused sick time and vacation pay as well as boosting retirement packages; they claimed in the suits that McCartney and Marturano were purposely deceitful, and well aware what they were doing was not allowed.
As a result of the audit and the subsequent litigation, said Langevin, "We came to understand the internal controls were in need of review, which we’ve done, and that’s the important thing."
Langevin said that at no time following the release of the audit did she or the board sit down and talk with McCartney or Marturano. "There were conversations, but they were between the attorneys," she said. "We didn’t have direct conversations with them," she said, adding that it was the recommendation of the district’s lawyer.
The conversations between the school’s and administrators’ attorneys and discussions that followed between the board and its attorney, "resulted in the reduction in the acceptable settlement" with Marturano, Langevin said.

Because the school district went ahead with the civil suits so quickly after the first audit was released, former school board President Robert Baron said earlier, it inadvertently broke down the lines of communication with the former administrators.
"Once you raise the stakes so high, it just kills the communication," said Baron, who served on the board during the tenure of both retired administrators.
Langevin this week referred to the ongoing litigation as "a situation of diminishing return." The board had to make a balanced decision, she said. "How much are you going to expend of the taxpayer’s money"" she asked, adding that the process could continue indefinitely.

Langevin had estimated in August of 2006 that the district had spent nearly $102,000 on the litigation; current figures were not available this week.

Because there was no criminality, Langevin said, the district will not be reimbursed for legal fees through its insurance company.
"I think we made a reasonable decision," Langevin said.
"It was time for us and Dr. Marturano to put this behind all of us," said school board President David Gibson on Wednesday. "It was the best thing to do at this time," he said.
"I think, as painful as this was for everyone concerned" I know that the district has learned things," Gibson said.
Some of the payments that Marturano received "may have even been appropriate," Gibson said. "But, there wasn’t the right documentation.
"It’s a continuous learning process," Gibson said of the fiduciary responsibility of the board and the administration.
"I feel good that we’ll have continuous improvement," Gibson said. "You can’t just stand still."
"The district is satisfied with the result and anxious to move on," Langevin concluded of the settlement.