ORANGE — During its meeting on Wednesday, July 10, 2024, the Selectboard voted to direct Town Administrator Matthew Fortier to start the process of applying to the state for a financial management review. This decision comes roughly two months after the Selectboard revealed during its May 16, 2024, meeting that the town had paid $338,000 in fraudulent invoices last year, which has caused the town to consider drastic budget cuts, including closing libraries. The total attempted fraud exceeded $800,000, but banks were able to halt some payments, reducing the town’s loss to $338,000.
The fraud, under investigation by the FBI, Orange Police, and Northwestern District Attorney’s Office, is believed to be a money-mule scheme in which individuals, often unknowingly, are recruited to transfer illegally obtained funds on behalf of others – often – by using fake invoices.
During the Selectboard’s meeting on July 10, 2024, Selectboard member Julie Davis inquired about the number of reviews available to the town. According to The Greenfield Recorder, Fortier mentioned that “about a dozen” reviews could be conducted, although he did not specify which reviews or which state department would oversee the process. However, Fortier referenced a 2004 financial review conducted for Orange by the Massachusetts Department of Revenue, which included specific recommendations such as implementing biweekly wage payments for employees.
A financial management review in Massachusetts, conducted by the Financial Management Resource Bureau (FMRB), is a comprehensive evaluation of a municipality’s financial operations. This review assesses local accounting, treasury, collection, assessing, and administrative functions. The goal is to provide specific, actionable recommendations to improve financial practices, enhance efficiency, and ensure sustainability. The FMRB offers tailored guidance and tools to help municipalities address challenges and optimize their financial management systems.
When contacted by The Greenfield Recorder on Thursday, July 11, 2024, Fortier declined to comment further and deferred to Selectboard Chair Tom Smith. Smith, who spoke with a reporter later that day, clarified that since the town is in the early stages of seeking a financial management review, the specifics of what the review would entail are still unclear.
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