$400,000 State Grant Error and Bookkeeping Gaps Revealed in Five-Year CPC Audit

Key Points

  • Audit reveals $400,000 in state land grant funds were incorrectly credited to the general fund instead of CPC reserves
  • Board accepts $10,000 private gift for Walther Road beach stairs despite neighbor concerns over regulatory transparency
  • Application for $1 million Climate Leader grant deferred until after Town Meeting to study impact of building code changes
  • Select Board splits 3-2 on revolving fund article as members demand shift toward general fund accounting
  • District Attorney O'Keefe reports 25% drop in fatal overdoses and outlines new child abuse response initiatives

A comprehensive audit of Harwich Community Preservation Committee (CPC) finances has uncovered significant accounting lapses, including a $400,000 state grant that was mistakenly funneled into the town’s general coffers rather than its dedicated open space reserves. Renee Davis of Markham LLC presented the findings of the audit, which spanned from June 2019 through June 2024, revealing that while no funds are missing, the town’s internal bookkeeping failed to properly track mandated allocations for open space, historic preservation, and community housing. Davis explained that the town neglected to perform annual true-ups—adjustments that align budgeted estimates with actual tax revenue—leading to an overstated undesignated fund balance and reserves that were understated by approximately $350,000 per bucket.

The audit also highlighted a specific error involving the Six Ponds Great Woods project, where a $400,000 reimbursement from a state land grant was incorrectly credited. Davis noted that in fiscal year 2021, auditors found a plug entry in the books that lacked any supporting documentation. Member Donald Howell expressed deep regret over the administrative oversight, noting that the CPC had essentially been left to manage complex finances without adequate professional support for years. This wasn't a problem of days. It wasn't a problem of weeks and it wasn't a problem of months. David [Dixon] has been talking about this for years... somehow or another we let you folks go adrift without any help and I apologize, Howell said. Town Administrator Joseph Powers indicated that Article 22 in the upcoming Town Meeting warrant is intended to serve as a true-up mechanism to rectify these historical imbalances.

The Select Board also waded back into a neighborhood dispute over the Jenkins Beach stairs at 23 Walther Road, ultimately accepting a $10,000 donation from resident Timothy Richie to fund engineering and site work. The gift follows a controversial history with the Conservation Commission, which previously declined to authorize the reconstruction of the stairs. Resident Matt Sutphin spoke in opposition to the gift, arguing that the board was attempting to bypass environmental regulators. The select board should not be attempting to undercut the conservation commission, Sutphin said, adding that using private money for public infrastructure in this manner created a bad look. Town Administrator Powers clarified that the donor was comfortable with the funds being used for preliminary site plans rather than just construction. Vice Chair Peter Piekarski defended the acceptance, telling Sutphin, I appreciate your passion for this as I told you before and we can disagree and that's all this is—disagreement on interpretation. Board Member Julie noted that while the gift is generous, the ultimate authority remains with the Conservation Commission to approve any physical work. Motion Made by P. Piekarski to approve and accept the gift in the amount of $10,000 from Timothy Richie for the purpose of rebuilding the stairs to the access to Jenkins Beach on Walther Road. Motion Passed (4-1-0), with one board member in opposition.

Environmental policy took center stage as Valerie Bell, Chair of the Harwich Energy and Climate Action Committee, urged the board to apply for a state Climate Leader designation. Bell explained that the program could unlock up to $1 million in grant funding—a significant jump from the $225,000 available to Green Communities—but it requires the town to adopt a specialized opt-in stretch building code and commit to eliminating municipal fossil fuel use by 2050. Bell argued that the town should act now to secure a state-funded consultant to draft a decarbonization roadmap. Eventually the carrots will disappear and mandates will start coming down from the state and this specialized stretch code will become the regular building code in a couple of years... I'd like us to plan what we want to do, Bell stated. However, board members were hesitant to commit to the more stringent building codes without a detailed analysis of the impact on local construction costs. Board Member Michael said, I was not prepared to act on anything tonight and I need to see examples and do my due diligence. Chair Jeffrey Handler decided to defer the matter, stating, I don't want to see any negative votes tonight... we'll commit to bringing it back just after town meeting.

Public safety updates were provided by District Attorney Michael O'Keefe, who reported a notable decline in opioid-related tragedies. O'Keefe shared that in 2024, non-fatal overdoses dropped by 35% and fatal overdoses fell by 25% compared to the previous year. We think that's some pretty good evidence that our efforts trying to hold the business dealers in fentanyl accountable seems to be working, O'Keefe said. He also detailed a $1 million grant from Cape Cod Healthcare to expand the SIMS database for tracking overdoses and a new Child Emergency Response Team (CERT) for sexual abuse cases. Member Howell thanked the DA for his focus on elder fraud, an area where O'Keefe admitted prosecution remains difficult due to the complexity of forensic accounting.

The board finalized several articles for the 2025 Annual Town Meeting warrant, though not without friction regarding the town’s use of revolving funds. Member Howell reiterated his long-standing opposition to the Cultural Center and other departments operating outside the general fund. We're spending way too much money through revolving accounts that should be done through the general fund. I'm going to vote against this and I want to make sure that everybody is making the same commitment... that we are going to fix this next year, Howell said. Motion Made by P. Piekarski to open the 2025 Annual Town Meeting Warrant. Motion Passed (5-0-0). Motion Made by P. Piekarski to accept and adopt Article 54 regarding departmental revolving funds. Motion Passed (3-2-0), with Member D. Howell and one board member opposed. Motion Made by P. Piekarski to close the 2025 Annual Town Meeting Warrant. Motion Passed (5-0-0).

In other business, the board refined a contract for wastewater management with Dan of Waterworks Consulting LLC. To address board concerns regarding costs, the consultant agreed to remove a 10% markup on subcontractors and expenses, moving to a cost-only reimbursement model. Motion Made by Board Member Michael to approve the contract with Waterworks Consulting LLC, striking the 10% markup on outside services, subcontractors, and expenses on the municipal fee schedule. Motion Passed (5-0-0). The board also set a date for final interviews for the permanent Finance Director position, inviting four finalists to meet with the board on Wednesday, April 16, starting at 3:00 PM. I figure 45 minutes minimum for each candidate, Chair Handler noted regarding the schedule.

Town Administrator Powers concluded the open session with a series of administrative updates, including the hiring of Lucas Cobburn as the new local building inspector starting April 22. Powers also announced the purchase of 15 new automated external defibrillators (AEDs) for town beaches and the awarding of a $35,615 contract to Any Fence for a new perimeter at the Community Center. On the infrastructure front, Powers provided a two-week look ahead for the Phase 3 sewer project, noting that construction has commenced on Route 39 near the East Harwich Fire and Rescue building, with temporary paving and police details in place to manage traffic flow.