RAMAPO, N.Y. -- Ramapo and Montebello could be risking their credit ratings if they don’t cough up the financial information Moody’s Investor Service wants, according to a report by lohud.com.
The town and village have been warned by the agency that they are now “on review” and could be downgraded if they don’t produce additional audits within 30 days, lohud.com reported.
Lower bond ratings can lead to higher interest rates, which in turn, could cost taxpayers more.
Ramapo blamed the delay in turning over the material on its having to change to a new auditing firm last year, lohud.com’s story said.
Ramapo’s original auditor, PKF O’Connor Davies in Mamaroneck, and one of its senior partners, were charged last fall by the U.S. Securities and Exchange Commission with issuing fraudulent audits on municipal bond offerings connected to the building of the town's baseball stadium.
According to an earlier Daily Voice report, PFK O’Connor Davies agree to pay more than a half-million dollars in penalties without having to admit to the SEC's accusations.
A federal corruption trial of St. Lawrence and former economic aide Aaron Troodler was originally set for January, but has been moved back to April, an earlier lohud.com story said.
(They both have pleaded not guilty in the case, multiple media reports said.)
Montebello’s mayor, who said that the village’s 2015 audit is on track for completion next week, blamed the delay on the sudden death of the village’s clerk/treasurer last year, lohud.com reported.
Both municipalities told lohud.com they were confident that they were financially sound and that their ratings would not be withdrawn or lowered once Moody’s gets all the facts.