Town officials approve probe into finances of Riverhead BIDMA
Riverhead officials are at odds with the management association of the town’s business improvement district (BIDMA). The Town Board approved two resolutions last week to authorize retainer agreements with the accounting firm PKF O’Connor Davies to conduct a forensic audit of the Riverhead BIDMA — and with an outside consulting group Main Street Agency, to produce the annual Alive on 25, Halloween festival and potentially all 2025 downtown events previously run by the BID.
In a news release published Monday, town officials announced that after reviewing certain financial records for 2023, 2024 and the proposed budget for 2025 from the management group, they were advised by the town’s financial administrator and town attorney’s office to launch a forensic audit of the BIDMA, meaning the accounting firm will conduct a detailed examination of the organization’s books and financial transactions to identify any potential fraud, misconduct or other irregularities.
“The BIDMA is a not-for-profit entity funded almost entirely with taxpayer monies,” the statement read. “Accordingly, the Town Board has a fiduciary responsibility to ensure all dollars are being spent appropriately.”
The BIDMA put out their own statement prior to the town’s press release announcing they would not be producing Alive on 25 or Halloween Fest this year. Alive on 25 is tentatively set for July 10 with the annual Fireworks Display scheduled for Aug. 1. Halloween Fest, which includes the popular coffins races, trick-or-treating and a parade, is currently on for Oct. 25.
Going forward, The Main Street Agency will “seek to plan, market, promote, undertake and implement” these two summer and fall festivals, as well as “other events to benefit the Town of Riverhead” this year, according to the agreement.
The consultant will be paid a flat fee of $15,000 for planning and putting on these events.
Diane Tucci, CEO of Main Street Agency, will be responsible for fulfilling the terms of the agreement and serve as the principal liaison. Councilwoman Joann Waski remains the Town Board liaison for the Business Improvement District.
The BID was established in 1991 as a way to finance supplemental services and programs beyond those the local government provides. It is a special taxing district paid by businesses owners within the district and aims to increase customer activity and foot traffic in the historic downtown area.
