Comptroller cites Plymouth highway, town for fiscal errors
The town of Plymouth paid highway employees for holidays and sick and vacation days they shouldn't have received, a state comptroller's office audit found.
According to the audit released March 21 and announced April 18, '10 employees were collectively paid $12,037 for 20 holidays that were not authorized in the town's collective bargaining agreements; seven employees were collectively paid $9,942 for 64.25 days of unearned vacation, sick or personal leave accruals; and upon leaving town employment, two employees received compensation totaling $3,259 for 10 vacation days each that exceeded their earned, but unused, leave accruals.'
Auditors examined town records from Jan. 1, 2018 through May 31, 2023. During that time, there were three highway superintendents and two town supervisors, who served the town. There were also three contracts signed between the town and full-time employees.
The contracts specified paid holiday leave, vacation, sick time and personal leave benefits for full-time employees, the audit stated. It was up to the highway superintendent and bookkeeper to make sure leave accruals were accurately tracked.
'Although the superintendents manually recorded leave used by department employees, they did not ensure that leave accrual balances were included on employee timesheets,' the audit stated. 'Also, leave accrual balances were not listed on department employees' paychecks in accordance with Town CBA requirements.'
According to the audit, during the five-year time frame, seven full-time and three part-time employees received holiday pay in excess of the contract, which totaled $10,928.
The auditors recommended that the town 'ensure employees are only paid for holidays listed in CBAs; independently review and approve all unused leave and separation payments to ensure that accruals are accurately calculated, supported and disbursed, according to CBAs and the Town's employee benefit plan; and consult with legal counsel about recovering payments that were inconsistent with CBAs or other applicable laws,' the audit stated.
The audit was one of three audits on the town's highway department. The other two faulted the department for its assets and disbursements and fuel and motor oil inventories and procurements. Auditors extended the audit period through November 2023 to verify town assets were on site.
According to the audit, auditors reviewed 949 disbursements totaling $2 million that included vehicle and equipment parts and solvents, reimbursements to officials and employees and payments to other vendors and determined:
• The board approved 47 disbursements totaling $9,769 for vehicle parts that were not compatible with any town vehicles or equipment and 12 questionable disbursements totaling $23,817 for solvents. Some of the parts are only compatible with snowmobiles, all-terrain and utility-task vehicles, none of which the town owns. The solvents were purchased from out-of-state vendors at higher prices than local vendors offered and some products were never used. All five Board members said they were not aware of what they were approving but trusted the employees.
• The board did not approve 16 payments totaling $12,889, some of which lacked support, and included 10 reimbursements of $3,902 paid to town officials and employees and six payments of $8,987 paid to other vendors.
Auditors recommended that the town 'establish and implement procedures to provide reasonable assurance that disbursements are authorized, supported by sufficient documentation and are for appropriate town purposes.' It should also audit claims prior to approval.
Auditors also found that the town officials 'did not adequately account for, secure or properly procure fuel and motor oil inventories. Had officials properly administered these inventories, taxpayers may have saved approximately $128,600.' This included $81,980 in unaccounted for diesel, gasoline and motor oil, $7,203 in fuel usage not reimbursed by the Plymouth Fire District and $39,435 in potential savings if the town used the state Office of General Services contract.
Auditors recommended that the town develop written policies, maintain accurate inventories and ensure access points to fuel pumping systems are unaltered and properly secured.
In a letter of response Town Supervisor Patricia Murray and Town Highway Superintendent Louis Redenback stated, they 'generally agree with the findings and recommendations in these draft audit reports. We appreciate all of your time and guidance with the audit procedure. We also ask for your patience and understanding, as we go through the process of correcting these extensive findings.'
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