State ‘wrapping up’ Ludlow forensic audit

Can be a tool in prosecution
By Elna Seabrooks
Staff Writer
    HOULTON — State Auditor Neria Douglass said during her review of Ludlow’s books and recordkeeping over the last two months, she continues to have “some concerns” and has “to spend a little more time conferring with some other people.”
    Douglass said: “We didn’t really do a financial audit. But, I did review the records and there are discrepancies. So, it’s more along the lines of a forensic audit.” By definition, a forensic audit can be used to track and collect forensic evidence, usually for investigation and prosecution of criminal acts such as embezzlement or fraud. It is also called forensic accounting.
    “We just haven’t finished up. I’m trying to wrap it up, but need to contact a few people before I present  anything to the town. I anticipate sending them a written report,” said Douglass. She confirmed that she had to speak with “a variety of people in state and town government. It is time consuming and some of it is just the nature of the details and conferring with people who are busy.”
    Although Assistant Attorney General Leanne Robbin still will not comment on any potential referrals to her office by the state auditor, at least one matter may have already been referred to the Financial Crimes and Civil Rights Division based on an examination of Ludlow’s incomplete recordkeeping history.
    The state investigation grew out of a call from an auditor in Bangor who claimed his name was on a Ludlow audit that he had not performed.
    Douglass said after reviewing the state’s files, there were no records of an audit for Ludlow since 2002. Municipalities are legally required to have an audit every year and face penalties for not providing them to the state.
    At a special town meeting February 15, Selectman Ginny McCain announced that Marybeth Foley was on suspension without pay from her job as town manager for not producing “receipts and a copy of an audit.”
    After the state subpoenaed Ludlow’s records, Douglass said there were some clear records, but the overall situation was not good, “not well organized and in disarray.”
    For example, she said there were no cash receipts for motor vehicle registrations.