Auditor: ‘A lot of people to blame’ for Saugus situation

SAUGUS – Jim Powers of accounting firm Powers and Sullivan said there are “a lot of people to blame” for up to $1.4 million in financial violations found in the town?s sewer and water accounts, and specifically mentioned Department of Public Works Director Joe Attubato and town accountant Joan Regan as two town employees who should have done more to shed light on the misappropriations.Speaking at a joint meeting of the Board of Selectmen and the Finance Committee Wednesday night, Powers presented part one of his firm?s audit findings and answered questions from town officials.Powers said Regan knew certain transactions were wrong and had the ability to stop them at any time.?When I asked the town accountant directly if she knew this was wrong, she said, ?Yes,?” said Powers. “I asked why she processed it and she said she was told to do this by the former Town Manager. As we went through this with other employees, they said they did it because the Town Manager told them to, but this does not relieve anyone of their responsibilities.”Powers said there were “a lot breakdowns of internal controls,” and said Attubato also told him he was aware of the misappropriations.?A lot of people weren?t doing their jobs,” said Powers. “The DPW director said he was aware this was going on. I really can?t tell you why (it wasn?t caught). There are all different layers of accountability here.”Powers said he heard “anecdotally” that Attubato had said in the past that certain employees were working in water and sewer when he knew they weren?t.Selectman Stephen Horlick said he thinks former Town Manager Andrew Bisignani was “bullying” employees to get them to go along.?People I believe were threatened that if you open your mouth you?ll lose your job,” said Horlick.Selectmen vice Chairman Steve Castinetti said he was troubled by previous auditing firm Melanson Heath giving Saugus a “clean bill of health,” and asked if violations should have been picked up.Powers said it “could have” been picked up.Castinetti said there were obvious feelings of intimidation among town employees, and noted after speaking with them earlier this year, they told them they didn?t speak out because they “didn?t know who to trust.”Despite the issues found in the audit, Powers said he?s seen worse in the more than 60 towns and cities his firm audits yearly.?Unfortunately it does happen,” said Powers. “It happens more often than I?d like to admit and sometimes the auditors find it ? but sometimes you can miss it too.”The board made a motion to send a letter to Bisignani requesting he attend a public meeting to answer questions about the audit.Matt Tempesta can be reached at [email protected].