State Makes Finance Comments Public

State Makes Finance Comments Public
DOR: Communication, Software Problems Led To Town's Deficit
Damien Fisher
News Staff Writer

WINCHENDON 
The Massachusetts Department of Revenue took the unusual step this week to publicly affirm statements made during meetings with town and school officials regarding the town’s finances, stating that no one person caused the recent deficit.

Last week, Finance Committee Chairman Thomas Kane reported during a public meeting that DOR representative Gerald Perry met with town and school officials on Jan. 21.

During that Jan. 21 meeting, Mr. Perry reportedly said, among other things, that there is no evidence of fraud related to the town’s $3.4 million debt.

Mr. Kane’s statements were not initially believed by some segments of the community, according to an email Town Manager James Kreidler sent to Mr. Perry.

“The difficulty we are experiencing, however, is that there are those in the community at large who were not in attendance who have an agenda that does not align with the information discussed in our meeting,” Mr. Kreidler wrote.

A group of residents called Stand Up for Toy Town is leading a push to recall selectmen Fedor Berndt and Elizabeth Hunt in an effort to fire Mr. Kreidler, placing much of the blame for the town’s financial problems on Mr. Kreidler.

In his Jan. 26 email, Mr. Kreidler asked Mr. Perry to confirm that the DOR representatives made the following statements to town and school officials during the Jan. 21 meeting: The DOR identified a lack of communication and financial software system failures as the keys that led to the deficit.

No one person or department was responsible for our current financial situation but rather we all own a piece of it.

After all of the analysis by DOR and Roselli there was no evidence of fraud.

(Winchendon is) not the first community to go through this and if we follow your guidance we will come out of it all the stronger.

The DOR recognizes that the pursuit of a forensic audit is a local decision but felt strongly that such an exercise was not warranted and in fact would represent a waste of tax funds given the level of scrutiny that our town finances have faced at the hands of DOR (over 150 years of experience) and by Roselli’s firm.

Instead of additional audit work on FY13 and FY14 the town would be better served in pursuing a Financial Management Review by DOR.

Mr. Perry responded to Mr. Kreidler’s request.

“Please be advised that the information as portrayed by you in your email is accurate in nature,” Mr. Perry wrote.

“All the bullets in this email are recommendations or comments that came from me and this office.

Feel free to show this email to any resident or constituent in your community.”

Stand Up for Toy Town volunteers have until the end of the day Thursday to turn in more than 900 valid signatures from registered voters against both Mr. Berndt and Ms. Hunt in order to trigger the recall election.

The town has since secured a loan from the state worth up to $6 million to cover the deficit.

Additionally, structural changes to the town’s health insurance are expected to be completed this spring as the town moves away from the self-insured plan.