ARTICLE UPDATED WITH INFORMATION ABOUT THE CITY OF HARRISBURG'S AUDIT PROCESS.

During the September 26th meeting, the City of Harrisburg's Chief Operating Officer, Ricardo Mendez-Saldiva, delivers his bi-weekly report to the Municipal Financial Recovery Advisory Committee, summarizing the City's current operating and recovery strategizing status.

He emphasizes the work the Novak Consulting Group is doing; the 2010 and 2011 City audits; the state of the Finance Bureau; and the Administration's relationships with the unions.

One of the most significant disclosures in the COO's presentation is his announcement that the audit firm of Trout, Ebersole & Groff, which was procured in July, has stopped work on the audits because of the City of Harrisburg's failure to pay for the firm's services.

Saldivia tells the Committee he has hopes the problem should be solved quickly citing the issue as a lack of communication between the firm and the Administration.

In another adverse disclosure, Saldivia proclaims that "the Finance Bureau remains unstable" because of the fiscal restraints of the City. Ending on a positive note, Saldivia says the Administration has "reengaged our labor-management relationships" with the three unions.

UPDATE: On Thursday September 27th, the issue of payment to Trout, Ebersole, & Groff was resolved and work has commenced again. This past summer, in order to expedite the City of Harrisburg's process, The Harrisburg Authority (THA) and the Office of the Receiver together procured the firm to assist the City in finishing the delayed audits. THA agreed to provide up to $40,000 to be paid directly to Trout. The Office of the Receiver's team had questions about the most recent bill submitted by Trout, which resulted in postponed payment. This is the reason the COO was told by the audit firm that no payment had been received and that work was halted. However, one day after the COO's disclosure, THA issued a $40,000 check to Trout. Work on the 2011 Audit is expected to begin next week---Tara Leo Auchey coo, mendez-saldive, harrisburg, fred reddig, receiver,

Photo/Natalie Cake