Director flags cash-balance discrepancy; staff to reconcile October financials

The Director reported that the towns October financial statements are draft and staff has identified a discrepancy in cash balances that will require further review. "After this first payroll it's still positive 16,361," the Director said, noting that income and expense figures are likely accurate but cash transfers from prior years need to be traced.

The Director said some dollars were received as donations and grants in prior years and had been used for projects such as the pool, and that budget entries sometimes show a transfer from fund balance that was not subsequently recorded. "I believe there's funds that were taken out that shouldn't have been and so those will come back," the Director said, adding staff and contracted bookkeeping support will "do some digging" to identify where transfers occurred and correct the records.

Council members asked clarifying questions about which funds and projects were affected; the Director said the towns auditor performs an annual audit and staff will provide cleaner monthly reports while they reconcile the discrepancies. The council took no formal action on the financial statements at this meeting.

The Director said staff will prepare a clearer reconciliation and a list of specific transfers and expenditures for council review in future meetings. No timetable was specified for when the reconciliation will be completed.