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Highland board debates ARPA bookkeeping and tightens bank‑change rules after payroll scam
Summary
At its July 9 meeting, the Highland Town Board discussed ARPA accounting practices and approved an immediate policy requiring in‑person verification for any bank‑account changes after a payroll fraud incident; the supervisor also reviewed account balances and said ARPA funds remain designated for specified capital purchases.
The Highland Town Board on July 9 discussed how to account for federal American Rescue Plan Act (ARPA) funds and moved to tighten procedures after a payroll banking‑information fraud.
Town Supervisor (identified by meeting speakers) said ARPA funds previously designated for a highway generator and a lift for the highway garage remain restricted to those capital uses. He reported account balances and investment activity, saying the town moved funds into New York Class and listed a JetBank balance and an amount in the New York Class account; a supervisor commentary about accrued “high‑yield interest” was unclear in the transcript. The supervisor emphasized that ARPA money should be shown in the revenue lines associated with the assigned categories rather than by changing the adopted budget fixed points.
The supervisor described a direct‑deposit fraud in which a fraudulent email, posing as the assessor Laurie King, led the bookkeeper to change a payee account and issue a payment to the wrong account. The township has filed a claim with its insurer and reported the incident to the Sullivan County Sheriff’s cyber unit. In response, the board said it will implement an immediate policy requiring in‑person verification of any banking‑information change and signed documentation before staff will process transfers.
Board members debated accounting practice for ARPA: some members urged transfers into a special or capital fund to avoid mixing one‑time federal funds with the general fund, while others described state guidance that an influx of federal revenue should be reflected in the revenue lines and not by altering adopted fixed budget points. The board did not adopt a resolution to change budget rules at the meeting and invited the town bookkeeper and the town’s accounting consultant to return for a future explanation.
The board approved claims and abstracts later in the meeting that the supervisor said included ARPA‑funded purchases already designated for specific capital projects. The supervisor asked staff to circulate written policy guidance and encouraged residents to contact the bookkeeper or accountant for clarification.
The meeting record shows the town will adopt the in‑person verification policy immediately and will seek additional clarification from the accounting consultant at a future meeting.
The board closed the discussion with an invitation for further review by its accountant and a public offer to circulate written policy materials.
