‘Violations’ found in Saugus audit

SAUGUS – The second part of three in Saugus’ ongoing forensic audit was released Wednesday, and it details more than $160,000 in “questionable” payroll expenses and “violations” in municipal finance laws and Department of Revenue regulations.”It is apparent, based on the evidence we reviewed, that these significant financial violations of laws and regulations were an effort to intentionally cover up the actual nature of the transactions with full knowledge that they were actual violations,” the report concludes.The audit, prepared by Powers and Sullivan, states that payroll expenditures were charged to overtime, expense and revenue line items; contractual and collective bargained payroll employees were paid above their contractual step rate; stipends were given to employees without an appropriation; and cell phone and auto allowances were given to employees “inconsistently and in an arbitrary manner, and not in compliance with the town’s travel policy.”Read the full audit.The report states that there were 24 instances totaling $65,000 where employee-related allowances and other benefits were administered, despite the lack of a policy to do so.The audit found $3,360 in cell phone allowances and $15,000 in auto allowances for Fiscal Year 2012 even though the report states there is “no policy in place which identifies what positions are to receive a cell phone allowance.”Former Town Manager Andrew Bisignani said many of the issues raised in the audit were in place for years before he became manager and noted that everything he did as town manager was done to “protect the health, safety and well being of the residents of Saugus,” and done with the “knowledge of other town officials.””I was never given the opportunity to explain any of these issues, many of which I feel are presented out of context and simply not true,” said Bisignani in a phone interview Wednesday. “Most of these issues were openly discussed in budget presentations with the Board of Selectmen, Finance Committee and Town Meeting.””Their conclusions of intentional wrongdoing by me or other town officials are unsupported and fatally flawed,” he added. “The statement about intentional wrongdoing and fraudulent practices is totally unsubstantiated and unfair and unprofessional. It’s in violation of auditing standards to make that kind of an assumption.”According to the audit, the plumbing inspector, cemetery superintendent, recycling coordinator, deputy assessor, electrical inspector, water foreman, health director and the building inspector all received cell phone allowances while the code enforcement officer, plumbing inspector, electrical inspector, health director, recycling coordinator and two part-time recycling enforcement officers received auto allowances.”I didn’t start that. That was done before I got there,” said Bisignani. “What are you going to have a building inspector without a phone? He gets calls in the middle of the night. The recycling coordinator is back and forth all day long and gets calls all day long. All of the inspectors need phones.”The audit also states that Bisignani “attempted to modify” the sick leave buyback contractual provision for Fire Chief James Blanchard and Police Chief Domenic Dimella from 100 sick days to 200 sick days upon retirement while approving a benefit change for former Department of Public Works Director Joe Attubato to allow up to 50 percent of all accrued sick days upon retirement with no maximum number of sick leave buyback days.The audit further states that Dimella was paid more than $15,000 in fiscal year 2012 for “compensatory time,” which the audit says is “not in his current agreement with the town.”Former Town Accountant Joan Regan’s daughter was also hired to work at Town Hall, according to the report.”We are not questioning the qualifications of the employee but are questioning whether an evaluation was made to determine if any potential conflicts existed,” said the report.The report also states that the town