PARIS — The town’s general ledger is off by $2.1 million, Town Manager Amy Bernard reported Wednesday.
Manual credit and debit entries into the ledger were incorrectly transposed, throwing the town’s accounts far off balance, Bernard explained.
In some cases, the bookkeeping confusion has meant payroll checks have bounced because transfers weren’t made in a timely manner, Bernard said.
During the selectmen’s meeting Monday, Bernard reported that the town’s financial audit had been suspended because auditors were concerned that account reconciliations provided by the town are inaccurate.
The town’s general operating fund has not been reconciled with its bank account since since June 30, 2011, Bernard reported.
Bernard said she discovered errors with the town’s general ledger within a week of beginning work at Paris.
Other accounts in the town’s general ledger such as vehicle registrations and sales tax also haven’t been balanced in as long or longer than the town’s cash account, Bernard reported.
The board voted to hire Janet Smith, a bookkeeper recommended to the town by the auditor, to straighten out the books. Bernard said Smith’s services will cost the town $7,500.
According to a draft of the contract, Smith’s work would include reconciling the general operating, payroll and Northeast Bank accounts to the town’s general ledger. She will also reconcile taxes receivable to the outstanding tax lists on the general ledger, according to the contract.
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