Wareham's search for a new town accountant continues this week after confusion over whether the town had to follow procurement laws in hiring an accounting firm to fill in as town accountant.

In an October 28 memo written to Board of Selectmen chair Walter Cruz, Town Administrator Mark Andrews said Baystate Municipal Accounting Group withdrew its application after uncertainty about whether municipalities hiring firms that provide "CPA-like services" would be exempt from following the requirements of procurement laws.

According to Massachusetts General Law, municipalities are required to "seek written or oral quotations from no fewer than three persons customarily providing such supply or service" and award the contract to the person with the lowest quote.

The search for a town accountant is now crucial, as the town must get information to the state Department of Revenue in order to set its tax rate.

Former Town Accountant Elizabeth Zaleski was fired in April after a draft financial audit revealed a $919,000 discrepancy in the town's books. After appealing the dismissal and reaching a $42,500 settlement agreement, Zaleski was reinstated but agreed to immediately resign her post.

The $919,000 discrepancy has been reduced by $180,000, but auditors are still working.

Baystate Municipal Accounting Group "looked exactly like what we need to straighten out our accounting mess," Andrews wrote.

The firm was hired earlier this month and scheduled to begin work on October 28 after a hiring committee unanimously recommended it fill the position until December 31, when officials would then determine whether the town should continue using the firm's services or hire an individual.

Though the town was looking for an individual to fill the position of town accountant, it received a proposal from the accounting firm among six applications for the job from individuals.

"Frankly, the [hiring committee] did not receive applications from suitable applicants, other than [Baystate Municipal Accounting group]," Andrews wrote in the memo, which was provided to Wareham Week by his office. "It was not our original intention and it had not occurred to the [hiring committee] or me that hiring a firm might be an option."

It was the second time the town had posted the accountant's job. The hiring committee interviewed eight people for the position in the beginning of September. It narrowed the search down to two candidates, but both declined when separately offered the job, according to Collector/Treasurer John Foster, who explained the hiring process at a brief Board of Selectmen meeting on October 25.

After the hiring committee decided on the accounting firm, "we relied on prior precedent at the Inspector General['s office] to move ahead," Andrews wrote. "With a change of personnel at the Inspector General's office, the I.G. appears to have changed their former opinion exempting this type of hire" from procurement requirements.

Andrews wrote that the Inspector General's office "yielded neither approval nor rejection of our ability to hire [the firm] ... only a statement that they would be taking it over among themselves."

Andrews then asked Baystate Municipal Accounting Group to "independently confirm its current exempt status with the I.G.," but after inquiring, the firm withdrew it's bid, stating: "it does not want to enter a new relationship under a cloud and that it is most careful about its reputation," Andrews wrote.

The town is down to the wire in its search for an accountant. It needs to prepare and file information with the state Department of Revenue in order for it to set the tax rate and get the tax bills out on time, Foster told the Board of Selectmen.

Andrews wrote that the town is now seeking proposals from firms for a two-month contract through the end of 2011. The town will also continue to look an individual or a firm to begin work on January 1, 2012.

"My staff has reviewed the proposed process with the Inspector General's staff, which approves of the process I have outlined, which will follow the provisions" of the procurement law, he wrote. "While we would be happy to have an individual apply for the long term position, I think we have to acknowledge that the lengthy search we pursued looking for such individuals did not yield qualified and suitable applicants."

Andrews noted in his memo that there are still two weeks before Powers and Sullivan, a firm hired to audit the town's books, would be able to produce the information the accountant will need to file the necessary information with the state Department of Revenue.

The Department of Revenue "is aware of the timing issues and has not expressed any anxiety or disapproval," Andrews wrote. He said the town would have an interim accountant firm next week.

A spokeswoman from the Inspector General's office said the office was contacted by the town for guidance and that the office was "pleased" by the town's decision to "rebid the services."

Andrews did not return a phone call seeking further comment.