The Finance Committee Wednesday expressed concern with Town Administrator Mark Andrews' request to use emergency funding earmarked for audit expenses related to a $919,000 deficit discovered in the town's books to instead fill year-end deficits.

The discussion ensued during Andrews' request for several routine year-end transfers of money between municipal accounts. Fiscal year 2011 ended on June 30, and as is the case with all budgets, it is normal for some accounts to contain surpluses and others to have deficits at the end of the year. Town officials review the numbers and request FinCom approval for the transfer of funds between accounts to reduce deficits and pay bills.

After the $919,000 discrepancy was found in April, the Finance Committee approved the use of $40,000 from funds in its reserve account - used for unforeseen expenses and emergency situations - to pay for an anticipated increase in the cost of an audit of the town's books.

"At that time, it seemed to me very logical that with all the problems that we had [in the town's books], that we would run an additional $40,000 in expense," Finance Committee member Samuel Gray said. "And yet we're pulling the $40,000 out, so we didn't use any of that?"

Andrews said "there were sufficient funds" for the audit and asked the FinCom to use the money instead for deficits in the salary accounts of the Council on Aging and Town Planner departments.

"I ask that the request be considered given the fact that there were very difficult circumstances" in the case of the Council on Aging, Andrews said.

Marcia Griswold, who oversaw the Council on Aging, was placed on paid leave in February for an unknown reason. At that time, Susan Green, an administrative assistant in Andrews' office, was given the responsibility of acting director of the Council on Aging  in addition to her regular duties. Green was awarded a stipend on top of her regular salary for the additional work, Andrews said.

Griswold, whose job title was "director of Senior and Social Services," returned to work in May as "Social Services Assistant." Andrews said that position is part of Griswold's job, though Green remains the acting director of the Council on Aging.

"I think the Council on Aging is healthier for it. I think the social services area, which is part of [Griswold's] job description, is healthier for it," Andrews said. "This is an accounting matter that needs to be dealt with."

Andrews requested a transfer of $34,000 to from three areas - The Harbormaster Department salaries account, the emergency audit funding, and the Harbormaster Department expenses account - to pay for parts of both Green and Griswold's salaries.

Andrews could not confirm the amount of Green's stipend or the amount of funding left in the Harbormaster Department's expense account.

"I think it would be imperative to know what we're paying and who we're paying before we approve any transfers," said Finance Committee member Donna Bronk.

The committee ultimately voted to table the discussion and schedule a meeting for next Wednesday so Andrews can provide the amounts.

The FinCom also tabled a vote on the transfer of $28,000 of the audit funding to the Town Planner's salary budget. This would cover a discrepancy created after an article at the 2010 fall Town Meeting reduced the Planning Department's salary and wages account by $33,000.

On Wednesday, Andrews attributed the discrepancy to an anticipated reduction of local aid provided to the town, which necessitated the reduction of Planning Department funds. The reduction ended up not being as severe as expected, however, and the town kept part-time Town Planner John Charbonneau on the books for three days per week, Andrews said, adding that Charbonneau's salary "should have been covered."

FinCom members were puzzled.

"From what I understand, the 2010 Town Meeting took this money out and said you shouldn't spend it and we just went ahead and spent it anyway, is that correct?" Gray asked.

New Finance Committee chair Frank Heath argued that the audit funding should be used for the audit or nothing at all.

"My opinion is that the $40,000 should go back to reserve funds," he said. "I think to transfer that $40,000 that was to be used for emergency reasons ... is inappropriate."

The FinCom approved transfers of funding from various accounts to pay for routine expenses, such as unanticipated postage costs caused by the number of questions on the April 2010 ballot, contractual obligations to the town administrator, and a higher than anticipated cost for town cell phones (which is built in to the budget for the new fiscal year).

It was the Finance Committee's first meeting since fiscal year 2011 ended on June 30 and the new budget year began. In addition to Heath becoming chairman, the committee welcomed new members Rene Pickett and Larry McDonald.