Directors of Norway Paris Solid Waste board voted Sept. 21 to pursue a forensic audit of its books after a review found that more than $100,000 is missing. The vote was 7-1.

Even with six of seven years ‘ financial audits completed, many questions remain about the district’s accounting practices. Treasurer Robert Jewell, of Paris, said he asked an employee of Paris’ finance department to do a separate review and their results matched his.

Jewell had requested a special meeting to share findings of his review of the balance sheets and bank statements. He informed directors that as much as $102,000 cannot be accounted for.

At least two bank accounts have been closed in the past year — one with about $40,000 remaining from a $600,000 Maine state grant. The accounts were closed through phone calls, and no board authorization or signatures have been found in the public record, he said.

Jewell also said there are CD accounts that were not included in the financial data recently audited by RHR Smith, the Buxton CPA firm hired earlier this year to conduct the agency’s outstanding audits.

The district has multiple accounts with multiple banks.

“It is my concern and for the board,” Jewell said as he read the state statute involving agency financial management. “Under Maine law, a board member of office who learns of a major financial discrepancy and chooses to look the other way … can be held liable on the legal doctrine of local compliance. It is also known as conscious avoidance.”

Other mismanagement issues were discussed: a previous transfer station manager used a signature stamp of the board’s former president/secretary/treasurer to issue checks. And for a period of years bookkeeping was nonexistent — much of what was handed over to auditors was boxes of documents with no balance sheets or financial reports.

Directors indicated they expect accounting anomalies and missing funds to be resolved through the forensic audit.

At least two people in attendance questioned how it might not be considered malfeasance.

Janet Jamison, of Paris, said she began asking questions about the district’s finances during its public business meetings going back to last year, but never received answers.

A Norway resident countered that if previous stakeholders were not willing to be transparent then it is time to collect depositions.

“Just from listening to this here, it sounds like someone’s got you guys figured out,” the Norway resident said. “And they’ve been paying attention for a really long time. They’ve taken just enough.”

Directors did not discuss a timeline to have the forensic audit conducted. Jamison, who voted against pursuing the forensic audit, suggested waiting until RHR Smith concludes its final annual accounting audit, which it will start in early October.

The interlocal agreement between Norway and Paris calls for each town to provide $600,000 a year to fund the district’s operations.

At the annual town meeting last June, Paris’ voters refused to do so for the current fiscal year, approving a lower amount of $400,000 until Norway Paris Solid Waste adhered to proper accounting principles and completed its outstanding audits.

At Norway’s annual town meeting in June, voters authorized paying the full $600,000.

Besides Jewell and Jamison, Matthew Gary and Lisa Palmer serve as directors for Paris.

Directors from Norway are Jim Boyce, Stephen Powers, Scott Laliberte and Leigh Jordon.

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