$919,000 still unaccounted for, auditor says Town Meeting can resume

May 5, 2011

In a presentation before the Finance Committee and Board of Selectmen Thursday, a representative from accounting firm Powers & Sullivan said it would likely be a few more weeks before auditors can resolve a $919,000 discrepancy in the town's books.

Powers & Sullivan's James Powers said the financial articles the town will be voting on at Town Meeting in May have been adjusted to account for the $919,000 discrepancy.

The auditors discovered the discrepancy in March and all financial articles scheduled for April Town Meeting were held until May 25.

The auditors are currently going through this year's books with a fine-toothed comb, making sure that what has occurred so far is accurate, said Powers. Auditors will then begin a "detailed cash audit" for fiscal year 2010, looking for problems that may have contributed to the $919,000 discrepancy.

Powers stressed the importance of getting a Town Accountant back into Town Hall.

"You will not be able to go for a long term basis without a Town Accountant," he said. The sooner you get a qualified Town Accountant in here, the better off you will be."

Attorney Rich Bowen said that Town Accountant Elizabeth Zaleski, who was notified that she would be terminated after the audit results were made public, has opted to appeal the termination. A provision in her contract gives her the option to have a hearing regarding the town's intent to terminate her. The hearing would ultimately determine whether she would indeed be terminated or if she would return to her position as Town Accountant.

Bowen would only say that a hearing would likely take place within the next two weeks.

"Until that [hearing] decision is made, you still have a Town Accountant," Bowen said.

Town Administrator Mark Andrews was not present at the meeting.

Though Powers said in March that the $919,000 discrepancy could have been caused by accounting errors or by the "misappropriation of funds by an employee," he noted Thursday: "It doesn't appear that [the issue was caused by] anything more than internal control problems with the accounting side."

Town Meeting will address the town's financial business on May 23 at 7 p.m. in the Wareham High School auditorium.