Money
Quincy Implements Financial Reforms Following Elder Services Scandal
2025-02-10

In response to the recent indictment of former Elder Services Director Tom Clasby on embezzlement charges, Quincy's administration under Mayor Thomas Koch has introduced stringent financial control measures. The reforms aim to enhance transparency and accountability within city departments, ensuring that similar incidents are prevented in the future. Key changes include more frequent cash deposits, stricter receipt procedures, and annual audits of departmental cash flow. Additionally, the city is developing a "speak up" policy with an anonymous hotline for employees to report financial concerns. These measures reflect the administration's commitment to maintaining public trust and safeguarding city finances.

The indictment of Tom Clasby on January 9th has shaken the foundations of Quincy’s Elder Services department. Clasby stands accused of misappropriating at least $120,000 in cash, goods, and services over several years. The charges detail how he allegedly stole cash and falsified purchase orders for personal expenses, including luxury items like steak tips and even a painting of himself. This egregious misuse of public funds has prompted the City Council to order a comprehensive review of purchasing and accounting protocols. At its meeting on January 21st, the council emphasized the need for robust safeguards to prevent such breaches of trust from occurring again.

To address these concerns, a series of reforms have been implemented since October 1, 2024. Departments now deposit cash and checks whenever daily receipts reach or exceed $500, a significant change from the previous practice of accumulating larger sums before making deposits. The treasurer will also conduct annual site visits to audit cash flow procedures, which can be unannounced. Furthermore, separate personnel will handle different aspects of cash management, including receiving cash, endorsing checks, recording payments, and depositing funds. This separation of duties aims to maintain a clear chain of custody and ensure all transactions are accurately recorded and reviewed.

Eric Mason, the Director of Municipal Finance, highlighted the importance of maintaining visibility over cash at all times. He stressed that all employees must understand the full chain of custody for any cash or checks received by the city. During the period between June 2021 and April 2024, when Clasby was barred from the building and put on leave, he reportedly stole most, if not all, of the cash receipts from various programs at the Kennedy Center, where Elder Services is headquartered. This theft went undetected, underscoring the need for enhanced oversight and reporting mechanisms.

The city is also drafting a new "speak up" policy to empower whistleblowers. This initiative will include an independent hotline that city employees can use to report financial concerns anonymously. Eric Mason explained that the goal is to create a system where employees feel protected when raising suspicions about potential misallocation or mishandling of funds. Fear of embarrassment or retaliation can often discourage employees from coming forward, but this policy aims to bridge that gap. An independent firm, known for its financial expertise, will manage the hotline and investigate claims. Although details are still being finalized, city officials have already met with a reputable firm to ensure the policy's effectiveness.

The implementation of these reforms underscores the city's dedication to restoring public confidence in its financial management practices. By tightening controls and encouraging transparent communication, Quincy aims to prevent future instances of financial misconduct and ensure that public resources are used responsibly and ethically.

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