LIVERMORE FALLS – An ex-clerk accused of stealing $102,000 from the town’s Sewer Department is scheduled to appear Thursday in Androscoggin County Superior Court in Auburn to answer a charge of theft.

Faith Nichols, 37, of Livermore Falls has repaid $56,843.26 to the town, Town Manager Martin Puckett said Tuesday.

Nichols pleaded not guilty to the charge of theft by unauthorized taking in July 2006.

Nichols admitted to police and selectmen that she had taken the money, police and town officials said previously. She also apologized through her lawyer, Alan Stone, and vowed to pay the money back.

Puckett said he was notified that Nichols is to appear at 8:30 a.m. Thursday at the Auburn court for plea and sentencing.

Stone declined comment on the plea agreement Monday.

Assistant District Attorney Craig Turner was in court Tuesday and unavailable for comment.

Puckett said he sent out e-mails to selectmen about the court date and was trying to learn how town officials could address the court during the hearing prior to sentencing.

He said state prosecutors were keeping quiet about the plea agreement.

Selectmen told residents in August 2006 that they told the district attorney jail time was just as important as restitution.

“We felt justice wouldn’t be served if there was no jail time,” Selectman Bill Demaray said then, adding that it was needed as a deterrent.

Nichols is accused of stealing the money over 18 months, most during a nine-month period, according to auditors. Nichols resigned as sewer clerk in November 2005, citing health and personal reasons.

Auditors from RHR Smith & Co. informed selectmen in late 2005 that there appeared to be problems in the town’s sewer account.

Auditor Ron Smith told residents and selectmen at that meeting that his firm noticed problems about Sept. 20 as it was working on the annual town audit.

“While testing internal controls at the town we noted that the person responsible for maintaining the town’s sewer general ledger also approves then enters sewer journal entries to update and correct this general ledger,” Smith said then.

Proper accounting controls require independent approval of all journal entries before entering in the general ledger, he said.

Smith also alleged that Nichols had manipulated and destroyed town records, which had gone unnoticed for a long time. The auditing firm, with the help of a software company, recreated the town’s records from that period beginning in February 2004.

Smith told selectmen that many of the cash receipts were recorded, back-dated, and customer history purged from the town’s financial software after data entry. It should also be noted, he said, that many cash receipts and sewer aging reports could not be obtained from management.

Selectmen have since implemented new internal controls among other auditor’ recommendations.

The town placed a lien on Nichols’ house, which has since been sold, and $31,843.26 of the proceeds was given to the town toward reimbursement. That money is factored in to the $56,843.26 that has been repaid, Puckett said.