Embezzlement Statement
made at the beginning of the Waterford Town Meeting March 1, 2008
by Chairman John Bell on behalf of the Board of Selectmen

As most of you know by now, we have discovered that some town funds have been embezzled. During our annual audit, our auditor noted large balances in our intergovernmental and recreation receivables accounts, indicating they were significantly behind in their payments to the town. Chairman John Bell speaks at town meeting He sent confirmation requests to these sources and found that their records of payments did not agree with the town’s records of payments received. The balances in these receivable accounts have been increasing over the last several years. The audit findings were brought to the attention of the selectmen by the auditor on February 4 and on the same day we asked the Oxford County Sheriff’s office to begin a criminal investigation.

This investigation is ongoing and likely will be for an undetermined length of time. Consequently, there are some things that I am not at liberty to discuss. What I can tell you is that we are talking about a substantial sum of money. The initial estimate is between $160,000 and $180,000. It is estimated that of that, between $50,000 and $60,000 was unaccounted for in 2007. The balance is from prior years. The town does have a bond in place for $100,000 per employee, and we have been in contact with our bonding company.

When the audit is complete the auditor will issue a letter of management recommendations to the selectmen regarding internal controls over the accounting system. I can assure you that we will be implementing all of his suggestions. He has made suggestions to the selectmen in prior years regarding internal controls and a new accounting software system which enhances dual controls. We have purchased the software and will begin training on Wednesday, weather permitting.

I would like to thank Regan Martin for stepping in at a critical time, on short notice, and being a real help to Brenda over the last few weeks. Also, thank you to John Martin and Jeff Beebe for their help with the computers and Bill Haynes for helping publish the town report.

I think I have told you everything I can and I would like to keep this meeting moving, but if anyone has any questions regarding what I have said I would be glad to take a few minutes and answer them, if I can.

There were no questions.