By Josh Davis, Associate Editor

(April 4, 2019) There’s no new news yet on a forensic audit started around this time last year in Ocean Pines, although association President Doug Parks said that could soon change.

Parks, during a Saturday town hall meeting, said audit results were targeted by the end of this month.

He said Baltimore firm Gross, Mendelsohn & Associates was working with the Worcester County Bureau of Investigations and, by design, no board members have been associated with the examination of association finances. The firm was hired last April and the association budgeted $225,000 for the audit, or roughly $26.50 per homeowner.

The audit was triggered by several factors, including reports of several thousands of dollars in funds missing from the administration building, as well as concerns over whether $1.6 million in deficits accumulated over two years was in any way linked with fraud.

In February of last year, then-Director Pat Supik suggested the audit was unlikely to find significant money had gone missing.

“I do not want the community to think we’re going to find $1 million in fraud,” she said, adding the deficit had accumulated because of “money going out the door legitimately.

“If we do this, we may find $50,000 in fraud and may spend … a couple hundred thousand dollars on a significant forensic audit,” Supik continued. “I do think we need to do it for the community.”

Parks, on Saturday, said about the only information he had was that the audit looked at the finance department and public works, and auditors “went back one year as per their accounting requirements” into association records.

“That’s the most level detail I have because, clearly, they are the experts in what’s done as part of a forensic audit,” he said.

“If the audit determines that there was any either theft or other things, certainly OPA will take the necessary action on advice from our attorney,” Parks continued. “We’re going to wait until we get the facts and then we’ll get advice on the legal side, and we’ll take the necessary action.”

Parks said some new financial controls could be implemented based on the forensic audit results. He referred to a so-called “deep dive audit” several years ago that apparently contributed to the association improving its accounting procedures.

He said John Viola was instrumental in that process and added, of the former procedures, “it just wasn’t as tight as it should’ve been.”

Viola, the association treasurer and newly appointed general manager, said former association presidents Tom Herrick and Dave Stevens had been cooperative throughout the forensic audit process, and that Parks has also been supportive.

“Everything is being done properly. They have taken the measures that I requested a couple years ago and, at this point, just be assured that they are doing everything possible and there will be total transparency to the membership. I will assure you of that,” Viola said.