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Volunteer audit flags material accounting discrepancies; Limerick select board orders reconciliations
Summary
A volunteer forensic review presented to the Limerick Board of Selectmen identified apparent misstatements and unreconciled capital accounts, prompting board members to demand immediate reconciliations, question warrant approvals and schedule follow-up with the treasurer and budget committee.
A volunteer reviewer presented a forensic-style review of the town's accounting at the Limerick Board of Selectmen meeting on May 4, saying the town's reported fund balances, particularly capital reserves, “do not reliably represent reality” and urging the board to pursue immediate reconciliations and an ARPA compliance review.
The reviewer said she found large beginning-balance adjustments and mismatches between recorded reserves and cash balances, and recommended short-term oversight, documentation of the fire-station financing, mandatory monthly interfund reconciliations and an ARPA compliance review to address federal grant risks. She told the board the findings “do not conclude wrongdoing, but clearly show that the town's accounting records contain material distortions that require prompt board attention.” (Volunteer reviewer)
Board members reacted with alarm. One selectman said he would stop signing warrants until accounts were reconciled and supporting documentation was provided; others pressed for source documentation, loan amortization schedules and a reconciled cash position. The reviewer repeated concerns that capital-reserve accounts were showing negative balances and that some adjustments lacked accessible audit trails.
The board agreed on immediate next steps: members will meet with the treasurer and the budget committee to trace beginning-balance adjustments, review the 1.8 million-dollar fire-station grant entries, and produce more transparent reports. The board also directed staff to compile loan statements and source documents so auditors can validate adjustments.
Selectmen emphasized that the review is an initial step and not a formal audit. The volunteer repeated that final determinations rest with the treasurer, the independent auditor and the board. The select board set a goal to convene a working session with the treasurer and two budget-committee members to begin reconciliations, and several members said they expect the new auditor due to arrive in July to scrutinize the same records.
The board did not vote to remove or discipline staff during the meeting; instead it requested documentation and immediate corrective steps. The board also discussed options for read-only access to the town's TRIO accounting system so members can see live balances and support faster oversight.
Next steps: the select board will meet with treasurer staff and budget-committee members to trace adjustments and report back; the independent auditor will review records during the upcoming audit cycle. The board said it will not draw final conclusions until reconciliations and auditor review are complete.
