Creative Accounting Exposed Lisbon Style Highly Protected But So Neglected!!!

LISBON’S CREATIVE ACCOUNTING SCHEME

At last night’s town council meeting, Chairman Fern LaRochelle stated "all monies were accounted for and there were no missing funds". 

 I had asked the question about $96,000 + transferred out of the TIF payment account.  I finally got it and I am going to try and explain it to you.  Now the numbers, I am going to use are NOT accurate numbers.  These numbers will make it easier for you to understand.  Councilor Cote and I have believed for a long time the TIF Payment account was being used as a slush fund.   Here is how the scheme works:

You start off with a budgeted amount:  $200,000
Next you pay out all expenses such as TIF payment:  $100,000
This leaves a balance which is then transferred to another account:  $100,000
Now as far as the computer is concerned you budgeted $200,000 and spent  $200,000.  So next year the town will budget $200,000 for this line item.

These transactions are legal.  But how much did you actually spend on this line item, $100,000?  The rest of it has been transferred to be utilized as the town sees fit.  Now the town will go through a legal process and spend the remaining $100,000:

Request for Procurement (RFP)
Council approval
Purchase order
Issue funds

All of these are transactions, according to an audit team are perfectly legal.  But wait a minute, the originally budgeted $200,000 for TIF Payment was not utilized for TIF Payments instead only $100,000 were used.  The remaining $100,000 went for some other purchases like “toys for the boys” totally unrelated to the TIF Payment. 

If the money designated for a purpose is not utilized for that purpose then the town has “misappropriated town funds”.  This is one of the reasons for having our taxes increased again this year.  This is why Councilor Cote and I have been preaching about padding the budget.  I discovered this with the TIF Payment account and I am sure there are more accounts being utilized to hide money from the people.

Because these are all legal transactions, they will never be detected by an audit.  These inflated accounts will continue yearly to provide the town with spending money and be part of the cause for raising our taxes.

 Councilor Mike Bowie

Town Manager Stephen Eldridge

I call this “misappropriation of town funds” by the Town Manager and Councilor Bowie.  Our tax dollars are designed for a specific purpose and should not be utilized as a slush fund.  I doubt if any of the councilors other than Councilor Bowie understand what is going on here.

Councilor Gina Mason

VOTE THEM OUT IN NOVEMBER!!!!!!!!

Larry Fillmore
Concerned Citizens

Lisbon's Audits Firm Gets Busted In Westbrook: PPH: Audit at the center of Westbrook firings had data missing

Audit at the center of Westbrook firings had data missing

The mayor dismissed the finance director in 2010 after the city rejected 2009 report and ordered a review.

By Leslie Bridgers lbridgers@pressherald.com
Staff Writer

Information was missing from a 2009 audit report that Westbrook officials rejected, the city said Tuesday.

The city considered legal action against its former auditing firm for failing to report deficiencies in its bookkeeping, but further analysis of the audit showed that it was complete.

The city administrator and City Council simply never got the full report, the city said in a prepared statement. The statement came as the city released a third-party assessment of the auditing services provided by Runyon Kersteen Ouellette of South Portland.

That assessment had been kept confidential as the city evaluated its legal options, but the city has "concluded that there was no legal or factual basis to any claim" against the firm, the statement said.

 "Graham & Graham found, among other issues, that the 2009 audit gave a misleading picture of the city's financial position and that Runyon Kersteen Ouellette's work "was adversely impacted by the long-term relationship" with Rossignol, the city's finance director."

Oh we just bet you want to read the rest of the story here.


http://www.pressherald.com/news/audit-at-the-center-of-westbrook-firings-had-data-missing_2012-08-22.html



Now Lisbon Residents, any bells going off yet? Doesn't this just give you a warm and fuzzy feeling inside about the confidence of the management in Lisbon Town Government?  These are not  trick questions.


No wonder they can't find the missing $32,500 plus other monies, they don't know how to look for nor have competent people looking, isn't that correct Brooks?

 Larry Fillmore has left a new comment on your post
This is the firm the town of Lisbon utilizes to perform our yearly audit. I have personally spoken to the lady who briefed the council and she told me the audit did not include the economic community development department because it is federal funds. She also informed me that the town manager provides guidance as to what the town wants audited. I have always questioned these yearly audits and this firm's results.

Lisbon Managerial Reports Now Available

View and/or Print out your own copy of the Reports from Lisbon Managers.

Click here.

Lisbon's 2009 Financial Report

The financial report for fiscal year 2009

Click Here 

Figures Lie and Liars Figure 

Go Figure $$$ 

Requests for Information 

The financial report is designed to provide a general overview of the Town's finances for all those with an interest in the government's finances.  Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to  Finance Director, Town of Lisbon, 300 Lisbon Road, Lisbon, ME 04250.