NEW ROCHELLE, NY (August 14, 2026) — The New York State Office of the State Comptroller has confirmed it is conducting an audit of the City of New Rochelle’s finances, more than two months after journalist Robert Cox filed a formal complaint asking the office to investigate the city’s financial management practices.
FORMAL COMPLAINT TO THE NEW YORK STATE OFFICE OF THE STATE COMPTROLLER (6/10/2026)
Mark Johnson, press secretary for Comptroller Thomas DiNapoli, confirmed the audit in an email Wednesday, writing, “I can confirm we are going to do an audit.” Johnson said he could not comment further. He did not confirm whether the audit was prompted by Cox’s complaint, and the Comptroller’s office has a policy of not discussing the origin or scope of audits before they are complete.
Cox, publisher of Talk of the Sound and Words in Edgewise, filed the complaint on June 10 under Article V, Section 1 of the New York State Constitution and Article III of the General Municipal Law. The complaint followed findings presented to the New Rochelle City Council on June 9 by the city’s outside auditor, EFPR Group, which flagged an unauthorized $19 million transfer from the capital projects fund to the general fund and budget overspending in both the general fund and the Section 8 fund.
EFPR also identified a material weakness in New Rochelle’s internal financial controls for the second consecutive year, according to the complaint. The complaint further cited a roughly 63% decline in the city’s unassigned fund balance since the start of 2024, which it linked in part to an expected $12 million to $13 million developer payment that has not arrived, and a pattern of no-bid contracts issued by the New Rochelle Corporation for Local Development to vendors with political connections to City Hall.
As of the complaint’s filing, New Rochelle had not filed its 2025 Annual Comprehensive Financial Report with the Comptroller’s office.
Sources with knowledge of the audit process told Cox that the Comptroller’s office gave the city a partial list of records to produce, including bank reconciliations that have not been completed. Cox also reported that Adam Ross, the city’s deputy commissioner of finance, has given notice — a departure that would follow the December 2025 retirement of former Finance Commissioner Edward Ritter and the arrival of current Finance Commissioner Alistair Featherstone.
The audit comes amid an ongoing dispute between Cox and the city over a draft financial statement that EFPR partner Thomas Smith referenced and read from at the June 9 council meeting. Cox filed a Freedom of Information Law request for the document the same day; the city denied it, citing an exemption for non-final intra-agency documents. City Manager Wilfredo Melendez denied Cox’s appeal on July 29, calling it the city’s final administrative determination.
RELATED
FORMAL COMPLAINT TO THE NEW YORK STATE OFFICE OF THE STATE COMPTROLLER (6/10/2026)
New Rochelle Audit Flags Illegal Fund Transfer, Budget Violations as Financial Troubles Continue (6/9/2026) Finance & Auditor presentation in June again show significant audit adjustments and material weakness.
New Rochelle Touted Strong Finances as Fund Balance Collapsed Before Audit Was Finalized (3/18/2026) Finance & Auditor presentation last fall highlighted a “clean audit,” but the 2024 financial report shows a $179 million deficit, sharply reduced reserves and significant audit adjustments.
Butcher’s Bill Comes Due for New Rochelle Democrats (Sept. 7, 2025) Analysis of financial decisions and policies contributing to mounting fiscal pressures
New Rochelle Fund Balance Q&A Devolves Into Unintelligible Mush (Sept. 10, 2025) City officials struggle to explain declining fund balance during a contentious public discussion
Hidden Audit Presentation Records Released by New Rochelle(Sept. 11, 2015) Previously undisclosed audit presentation materials reveal internal concerns and financial reporting issue.
New Rochelle Annual Comprehensive Financial Report December 31, 2024 (Nov. 5, 2025) Official financial report showing a $179 million negative net position, sharply reduced reserves and audit-related adjustments.
This article was prepared with the assistance of AI tools under the direction and editing of Robert Cox
Have information about this story? Email robertcox@talkofthesound (preferred) or contact via WhatsApp: +353 089 972 0669.