Grabowski: Saugus audit results ‘very disturbing’

SAUGUS – Saugus held a pair of meetings to review high school student account audit findings Thursday night.At a 6 p.m. School Committee meeting, Chairman Wendy Reed said many of the issues outlined in the audit have been addressed.?In Jan. 2012 or December 2011, the last audit had a few issues they had asked to be addressed,” said Reed. “Since that time the committee with the former finance director had addressed some of the issues, but not all of them.”After former finance director Sam Rippin left, Reed said the new director, Pola Andrews, “quickly took up the task” and “instituted some changes” such as creating separate accounts for scholarships and guidance.?There are some areas that need to be addressed in procedures that will be addressed collaboratively,” said Reed.Andrews said “most of the procedures have already been implemented,” including eliminating most cash being received at the schools.?That could never happen at 100 percent, but if we can eliminate fees like field trips and bring them online that would be the way to go,” she said. “We brought some additional fees online and will be working to add others in the future.”School Committee member Arthur Grabowski said he found the audit “very disturbing.”?I believe the residents of this town need to get an understanding of how this happened and how it will never happen again,” said Grabowski. “I?m really disturbed that monies that people in this community donated with the express reason to provide scholarships to children was never distributed to the children.”Grabowski asked about a $1,000 transfer from the Dorothea Routhier Scholarship Fund that was questioned by the auditors and fines being collected by Principal Joseph Diorio for students who lost their identification badges.Andrews said fines are no longer in effect and will “no longer be happening,” and noted all scholarships have been transferred into a separate account.Andrews also said $10,000 was moved out of the principal?s discretionary fund.Grabowski then said he would not go beyond page 17 of the audit because “I don?t think it should be discussed in this forum.”That portion of the audit details $17,000 in “questioned” stipends paid to Diorio from the student activity account.Andrews said since she was hired, she has been working in collaboration with the town treasurer.?And I have been working with administrators to make sure the issues detailed in the audit never happen again,” she said.A Cadillac with New Hampshire license plates saying “DIORIO” was in the administration building parking lot Thursday, but Diorio did not attend the meeting.At Town Hall, selectmen and the Finance Committee met with Jim Powers of Powers & Sullivan to discuss last year?s forensic audit into town finances.Powers said the “noncompliant accounts” in the audit were mentioned in old audit management letters and had been around for 20 years.He also noted he spoke to Rippin and said he was “fully aware” of the problems, and told auditors he was “in the process” of setting up grants and gift accounts.Powers said Rippin “informally” audited the accounts every year.Powers also said Diorio was able to explain several questioned expenses from the discretionary account.Matt Tempesta can be reached at [email protected].