LIVERMORE — The board of selectpersons met with their auditors and attorney Monday night, but no action was taken after more than an hour of executive sessions.

Prior to the closed door sessions, Ron Smith and Ed Warren with RHR Smith & Co. shared what they had determined since Smith met with the board on Nov. 23. A four-page letter was sent to the board Dec. 11 detailing observations and concerns the firm found.

Smith said not so good best practices in the town led to over- or under-taxing people.

“It was definitely a struggle to make sure the money in the bank was the right amount,” he said.

“For the last three years the Town of Livermore has made errors in its preparation of the certificate of assessment,” according to the letter. “In Fiscal Year 2018, the town overassessed…by $20,249. This error was the result of the “municipal appropriation figure” of $1.48 million being $20,249 higher than what was approved at the annual town meeting.”

The source of the variance couldn’t be resolved, the letter continued. The letter noted a similar error was made in FY2019, this time raising $3,000 more than approved at town meeting.

“In FY2020, the Town raised $87,425 under its approved figure at the annual town meeting. This was most likely the result of excluding the article for debt service in the amount of $89,425 as well as another unknown $2,000 variance,” the letter stated.

Timely reconciliations of general ledger asset and liability accounts such as cash, payroll liabilities, and taxes receivable were other items noted in the letter. Submission of retirement contributions, untimely submission of Form 941 Employer’s Quarterly Federal Tax Returns, payment of sick leave and vacation time record-keeping were specific items mentioned.

The letter noted:

• A difference of almost $600 between the amount deducted from employee paychecks and what was remitted to the employee retirement program the town uses.

• An employee was paid about $2,475 sick time at separation of service but town policy states sick time isn’t paid in that event.

• Problems with the math in the process on how sick time is earned and recorded.

• Vacation time taken was noted as regular time worked, leading to vacation time being overstated.

The selectpersons need to be able to tell taxpayers they understand the information provided, Smith said.

“When you’re late paying employees retirement funds, that’s a problem,” he said. “When the IRS is trying to reach you for 120 to 150 days and all letters went unanswered, that’s probably the last organization that you want to have breathing down your neck.”

The selectpersons need to be able to tell a story that is transparent and stands the test of time, Smith said.

“Some of the stories we’ve looked at, we’re not there, have a lot of problems with the math,” he said.

Administrative Assistant Aaron Miller asked if the town should do a reassessment of the $89,000 that was missing from taxes this year or eat that amount.

“You can do a reassessment, but that would cause more angst, would not be popular,” Smith said. “You have the ability to absorb it.”

“What got us here, what exactly went wrong,” Selectperson Brett Deyling asked.

Smith said that was sensitive information that wasn’t appropriate to discuss in open session.

A lengthy executive session with Miller, the selectpersons, the auditors and town attorney Matt Tarasevich of Bernstein, Shur, Sawyer and Nelson was followed immediately by a shorter one without the auditors.

No action was taken afterwards.

“The discussion is not over,” Selectperson Benjamin Guild said.

Miller said more will follow, probably in January.

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