Questions Remain in Missing Water Department Money

Some details have emerged regarding the theft of $900 from the , but a detailed process analysis from a Glastonbury-based forensic auditor Monday and an open police investigation have left more questions than answers for members of the Board of Water Commissioners.

The $900 was reported as missing to police over the summer, Board Vice President Erik Semmel said, but police are continuing to investigate who took the money and where it went.

“I wish there was more we could say about the disappearance of the money, but police are continuing to investigate and it remains an open investigation,” Semmel said. “Until that is complete, there is little more we can say on this subject.”

Police said the Southington Water Department first reported the money missing “near the beginning of the summer” and indicated that there are two specific incidents that the department is looking into. Both incidents were reported around the same time, police said.

The incidents are being investigated separately because only $400 of the missing money actually belonged to the water department. This money was lost somewhere along the process of making a bank deposit, office worker Maria Nason told the board on Monday. Both Nason and commissioners said it has become clear that it was not directly taken from the department’s register as initially reported in another media outlet.

The remaining $500 did not actually belong to the department although it was being held in the vault at the department for safe keeping when the theft occurred, Semmel said Monday.

“The $500 was money that was unintentionally dropped off as part of a medication collection program (in late April) and it had been stored in the vault for safe keeping until the owner was identified,” Semmel explained during the board meeting.

Around the time that the money was taken, the board hired Stephen Pedneault of the Glastobury-based company Forensic Accounting Services, LLC, to conduct an in-depth review of the department’s practices, procedures and policies. Pedneault presented his findings to the board Monday, but cautioned that his review did not include analysis of the department’s books and financial figures.

“It was not an audit to review financial transactions themselves, but rather to evaluate the internal controls, how things are done and what the department should be doing that they are not,” Pedneault said. “It’s not uncommon for agencies (like the water department) to do this.”

Pedneault spent two hours reviewing his report, which included 31 suggestions for how to improve existing policies. The suggestions were related in many cases and covered all aspects of the company, from strengthening policies and procedures such as how to record mileage and equipment use to account for liability to double checking work to avoid factual mistakes and make advanced audits easier in the future.

Most of these suggestions revolved around having financial reports, payroll and other money items not only double checked, but to have two separate individuals sign off on each review in order to prevent any improprieties and detect problems at an early stage.

The department should also consider backing up records in digital format and keeping hard copies locked in a vault in order to prevent losing any important documents, he said.

“These are measures which are designed to track potential embezzlement and repeated problems, but there aren’t measures that are well designed to detect a one time theft,” Pedneault said. “Embezzlement and larceny are not the same type of problem.”

Pedneault could not comment on the missing $900.

Commissioners Angelina Santa Maria said she was concerned that the department has received a bad reputation, but made it clear that the department “has been open and honest from the beginning.”

“I brought it up at the last meeting (on Nov. 10) and we have shared what we can. There’s a lot we still don’t know because the investigation remains open,” she said.

Commissioner Robert Berkmoes and Water Department Superintendent Tom West each said Monday that at the ’s request, they could not comment further on the issue until an arrest is made or at the very least, the investigation is complete.

Semmel and Berkmoes said they were happy with the report presented Monday and wish they had more information, but are satisfied with how the case has been handled to this point.

“The only thing we can say is the money was reported missing the day it was discovered,” Berkmoes said. “We as a board want to see this case closed as quickly as possible. We have a responsibility to this department, the ratepayer and the town to make sure we remain as transparent as possible and address this issue.”

“Everyone here is extremely concerned, but we are satisfied with the information we have received so far,” he said.