Fire Island's Ocean Beach credit card expenses: TV subscriptions, meals at restaurant owned by mayor, state audit finds

More than 90% of Ocean Beach credit card transactions totaling $356,610, including television subscriptions for village-owned apartments and meals at a restaurant owned by the mayor, did not comply with village policy, a state audit spanning a four-year period found.

State Comptroller Thomas DiNapoli's audit highlighted several "questionable purchases" and said the village failed to provide explanation for thousands of dollars in expenses, including $134,742 in home improvement store transactions.

The audit was conducted for the period between June 1, 2018, and Feb, 28, 2021.

Ocean Beach Mayor James Mallott, in a response to the comptroller’s office, said the village will “make its best efforts in the future to ensure compliance” with credit card policy, noting the report did not find “any instances of illegal or fraudulent use of taxpayer funds.”

The report comes nearly a year after Ocean Beach Clerk-Treasurer Steven Brautigam resigned, following another state audit found he was overpaid more than $44,000.

According to the most recent audit, $39,093 lacked receipts and $317,517 did not have a signed receipt or credit card slip. Sixty-nine of the attached receipts, totaling $8,439, lacked itemized details for the purchases.

The village board sometimes approved duplicate payments and paid $560 in late fees and interest charges for not approving and paying credit account statements in time, the report said.

The report highlighted several “questionable purchases" and expressed concern many "could have been for personal use," including:

• $134,742 in home improvement store transactions, with no signed receipts, for various tools and equipment, hardware, cleaning supplies and holiday decorations;
• $11,595 for television subscription services at three village-owned apartments;
• 134 restaurant transactions totaling $8,736, with $2,733 from 36 transactions lacking receipts. Ten meals totaling $822 were at a local restaurant owned by the mayor;
• $990 for a three-piece sectional sofa purchased for the village’s auxiliary office trailer that was shipped to an employee’s personal residence and was ultimately placed in the police chief’s apartment;
• $16,870 for 12 mattresses, three area rugs and other furniture for village-owned apartments, including a 12-bottle wine bar in 2018 for which an employee reimbursed the village $188 in cash. 

Mallot said the village "is a 24/7 operation, 365 days a year,” with most village meetings held on weekends at the barrier island. 

Sometimes companies don’t deliver to Fire Island, which is why items are occasionally shipped to personal residences of employees for delivery to Ocean Beach, Mallot said.

Village Administrator Joseph DiFrancisco, in response to a request for comment, said the mayor stands by the email sent to the comptroller’s office and will take “recommendations under advisement.”

Mallot, asked about the audit findings and restaurant transactions on Wednesday, said he stands by the village's emailed response to the comptroller's office.

The comptroller’s office has advised the village to provide guidelines for appropriate use of municipal credit cards and “thoroughly audit credit card claims,” with required documentation, before approving claims for payment. 

Village trustee Ian Levine, who was elected in June, said while he wasn’t on the board during the period audited, he believes “that changes have been made to ensure this doesn’t happen again.”

Newsday filed a Freedom of Information Law request for more details about the state audit, including the names of authorized credit card users, on July 20 to the comptroller’s office. The state acknowledged receipt of the request on Monday, but it has not been filled.

Newsday filed a similar request with the Village of Ocean Beach on Wednesday.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers the Town of Islip for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.