Audit shows no financial problems after resignation of Milo town manager

Former Milo Town Manager Jeff Gahagan stands in front of the Milo Town Hall in October 2009.
John Clarke Russ | BDN
Former Milo Town Manager Jeff Gahagan stands in front of the Milo Town Hall in October 2009. Buy Photo
By Nick Sambides Jr., BDN Staff
Posted May 23, 2012, at 3:19 p.m.

MILO, Maine — No problems were discovered in the town’s financial records in an audit ordered in response to the resignation early last month of Town Manager Jeffrey Gahagan, Police Chief Damien Pickel said Wednesday.

“There were no inconsistencies or anything that would be considered out of the ordinary,” Pickel said of the audit. “All of the numbers were as they should be.”

The Board of Selectmen ordered the audit in mid-April in response to allegations that $45,000 was missing from a local club for whom former Town Manager Jeff Gahagan was treasurer.

Gahagan resigned as the treasurer of the Three Rivers Kiwanis club on April 5, a day before resigning as town manager, in the midst of an investigation by the Piscataquis County Sheriff’s Department, according to Piscataquis County District Attorney R. Christopher Almy.

The investigation continues, Almy said Wednesday.

Gahagan told town leaders that he was resigning from the town manager position for health reasons. No allegations about any missing town money had surfaced, but selectmen said they had the auditor review town finances as a precaution.

“The town manager didn’t really have access to any town funds as it was set up anyway,” Pickel said.

The firm of James W. Wadman of Ellsworth handled the audit. Wadman and interim Town Manager Roger Raymond did not immediately return messages left Wednesday.

Wadman gave his final report on the matter to selectmen earlier this month.

http://bangordailynews.com/2012/05/23/news/piscataquis/audit-shows-no-financial-problems-after-resignation-of-milo-town-manager/ printed on October 2, 2014