Leisureville bookkeeper makes off with $8,000, audit finds

Article Courtesy of The Palm Beach Post

By LONA O'CONNOR

Published September 7, 2009

BOYNTON BEACH — A bookkeeper for the Palm Beach Leisureville community wrote herself $8,000 worth of extra paychecks and neglected to pay Leisureville's federal taxes, incurring $31,000 in fines and penalties and resulting in the IRS' seizing of Leisureville's checking account.

Those are among the disturbing revelations of a July audit of Leisureville's finances. The bookkeeper, Patricia Duffy, 55, was fired in April. In July, Leisureville board president, Peter Giaquinto, 78, filed a police report. A Boynton Beach Police investigation is under way.

The audit delivered sobering news: Some members of the community's finance committee may not understand their responsibilities.

"It appeared a few of the committee members did not have a basic grasp on the subject matter or what their role was as a committee member," the 43-page audit said.

The audit observed that Palm Beach Leisureville's board of directors needed greater control over staff.

Giaquinto did not return calls to his home and office.

The audit validates concerns raised by a blog called ourleisureville.com, which appeared in January after a failed attempt by residents to convince Leisureville's board that it was paying too much in salary, benefits and bonuses to its employees, at a time when residents were giving up such benefits or losing their jobs.

The audit noted that Leisureville employees receive much higher salaries and benefits than most nonprofit organizations.

The blog's purpose was to allow people to speak up who felt intimidated at meetings, and soon it was collecting hundreds of comments from residents.

Bloggers pointed out irregularities by the board, including scheduling key meetings during the day when few residents were able to attend. As many as 200 people might attend a regular evening meeting. Giaquinto told residents that proper notice had been given for the day meetings.

Leisureville's predicament provides a cautionary tale, said Ryan Poliakoff, author of a new book on shared-ownership communities.

Residents who scrutinize their board's practices are acting as responsible members of a shared ownership community. But it is unfortunately rare to find members of governing boards who have business or accounting expertise, added Poliakoff, a Hollywood condo vice president who co-authored New Neighborhoods: The Consumer's Guide to Condominium, Co-op and HOA Living with his father, attorney Gary Poliakoff, a local expert on condo law.

"The hardest part of the shared ownership community is that they require the participation of a lot of everyday people who don't want to get involved," said Ryan Poliakoff.

Though it would seem that Leisureville's board has taken measures to correct irregularities, the anonymous administrator of ourleisureville.com is gearing up for a new challenge.

In a recent post, "Admin" observed, "I would be remiss if I did not take to task the accountants whom I feel did a poor job of auditing our books."