Despite delay, DOR approves aid to Saugus

SAUGUS – Saugus avoided cuts to its state aid after a letter from the Department of Revenue threatened to withhold payments due to a “long overdue” financial report.A Feb. 15 email from revenue department Deputy Commissioner Robert G. Nunes states Saugus? Annual City and Town Financial Report, which was due on Oct. 31, had not yet been submitted.?Due to the long overdue status of this report, we intend to withhold your March 31, 2013 quarterly local aid payment,” said the letter.However, revenue department spokesman Daniel Bertrand said Saugus finally submitted its report on Feb. 21.?It?s part of the tax rate-setting process,” said Bertrand. “Seventy-three communities got those letters and have over the next month or so to respond. Saugus did subsequently submit their (report) so that?s now in review.”Town Manager Scott Crabtree said the report was delayed because the town had to work with auditors and a consultant to correct information. It also made adjustments in light of last year?s forensic audit.?The information that was provided by the last administration and all the adjustments from the forensic audit, they had to make explanations for everything,” said Crabtree. “As far as I know it was submitted last week so there?s no jeopardy of losing state aid.”Crabtree said the letter is standard and since the numbers didn?t add up, the town couldn?t submit them until they were fixed.?Whatever the past administration put in weren?t the right numbers and it creates all these errors ? the financials weren?t accurate that were reported to the DOR in the last year,” said Crabtree. “It?s been pretty challenging, but we?ve been working with the DOR and (auditing firm) Powers & Sullivan to satisfy that.”Selectman Debra Panetta said there was no cause for alarm, noting the delay had “nothing to do with this town administration.”?There were a lot of adjustments that our auditors had to make due to the misappropriations from the former town manager,” said Panetta. “There were all sorts of edits, and it caused a little bit of a delay. That?s a just a typical form letter. It?s nothing we need to concern ourselves. No state aid is going to be withheld.Matt Tempesta can be reached at [email protected].