LIVERMORE — In the last few months, town financial issues have been brought to light and the town’s auditors are working to address them.

On Oct. 26, 2020, Livermore Board of Selectpersons voted to pay the Internal Revenue Service about $5,870 in federal employer taxes, penalties and interest owed from 2019.

Then treasurer Amy Byron did not return phone calls, nor did she answer questions on the matter sent in an email.

When contacted by email Oct. 30, 2020, Aaron Miller, administrative assistant to the Board of Selectpersons, wrote that the federal employer’s tax payments for the first, second and fourth quarters of 2019 were not paid on time.

On Wednesday, Nov. 11, 2020, Byron returned answers to the questions sent to her in October.

“The Town makes biweekly deposits to the IRS as part of the payroll process. The deposits are made electronically through a system called EFTPS,” she wrote. “If those deposits are off by even a day we are penalized and interest accrues.”

According to Byron, the deposit dates were off for quarters one and four.

“One because of technology issues and the other because I was out sick,” Byron wrote. “Quarter two deposit was made on time but was applied to the wrong quarter. The IRS is not able to move deposits from one quarter to another.”

Amy Byron submitted her letter of resignation Monday, Nov. 23, 2020. The Board of Selectpersons were scheduled to hear a report on the town’s audit at their regular meeting that evening.

“To date we’re seeing the same old problems,” Ronald Smith of RHR Smith & Co. told the board while on speakerphone. “One of the biggest things concerning to us is that the tax assessor’s certification was problematic again this year. Real bad math and not paying attention to details. When you sent out the tax bills they were wrong for the third year in a row.”

The municipal appropriation total used on the Fiscal Year 2020 certificate of assessment had an error approximating $89,000 variance, resulting in an underpayment of taxes, Smith wrote in a Nov. 2, 2020 letter to selectpersons.

The treasurer calculates the certificate of assessment.

“There are issues with bank reconciliations, taxes, tax liens, payroll liabilities,” Smith told the board. “We continue to see bad math, some errors out there. Every year we’re having this conversation. It goes well beyond the scope of an audit.”

“Compensation is not consistent with policy. Paying or not paying liabilities on time,” Smith said. “I could go on and on, make a list. Until you can get a better understanding of if the numbers are right or wrong, I think more needs to be done to get there. There seems to be a lot more issues to look at this year than in the past. Your books are going to be problematic.”

“How did things get this far,” resident Robin Staples asked.

“We don’t know all that’s going on,” Selectperson Chairman Mark Chretien said. He noted he had pushed at the town meeting for the treasurer to be appointed not elected.

“If a bill isn’t in the warrant, we don’t even know it exists,” Selectperson Brett Deyling said. “Having somebody in the position of administrative assistant and treasurer is very bad. The person in charge of the numbers is telling everyone everything is fine.”

Following Smith’s report, the selectpersons unanimously accepted Byron’s resignation, effective immediately, and appointed Mary Castonguay treasurer.

Byron had held several positions in Livermore since 2012, including treasurer and interim administrative assistant. She was hired in May 2016 as full-time administrative assistant to the board and served in the position until June 19, when she took a position in Livermore Falls.

Castonguay had been deputy treasurer.

The board of selectpersons met with its auditors and attorney Dec. 14, 2020.

Ron Smith and Ed Warren with RHR Smith & Co. shared what they had determined since Smith met with the board on Nov. 23, 2020. A four-page letter was sent to the board Dec. 11, 2020 detailing observations and concerns the firm found.

“For the last three years the Town of Livermore has made errors in its preparation of the certificate of assessment,” according to the letter.

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.

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.

Miller said more will follow, probably in January.

Miller and new treasurer Castonguay have implemented practices to provide more checks and balances for the town’s finances.

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