A New York state audit of finances in a Long Island town filled with millionaires blames fiscal mismanagement for a deficit that required $15 million in bonding to cover budget shortfalls.
Comptroller Tom DiNapoli says East Hampton town officials ignored basic accounting principles, spending more money than they had in the bank.
The town issued $10 million in bonds to close a 2007-08 deficit, and $5 million more for additional shortfalls.
He also said officials improperly took money from a Community Preservation Fund to cover town operations. Earlier this year, the town’s former budget director pleaded not guilty to official misconduct and other charges.
The area at the eastern tip of Long Island is the summer home to some of the world’s wealthiest business leaders and celebrities. (AP)
