Carver hires a law firm over excess health insurance payments as its delayed fiscal 2024 audit lands

CARVER Carver has hired a New Bedford law firm to find out whether the town can recover health insurance payments it says were higher than they should have been, Select Board Chair Mark Townsend announced Tuesday, Nov. 10.

The board retained Lang, Xifaras & Bullard to determine whether the Gateway Health Group, the health insurance group Carver belonged to, or its consultants bear any liability for the town's excess health insurance payments for fiscal years 2025 and 2026, Townsend said. "This process may include litigation to recoup unanticipated and or excess payments," he said. No dollar amount was given at the meeting, and the announcement named no individual.

Carver's online staff directory, as read Nov. 14, lists Town Administrator Glenn Cannon as chairman of the Gateway Health Group. South Coast 360 asked Cannon on Saturday, Nov. 14, about his role with the group and how much the town believes it overpaid, and will update this story with his answer.

Later in the meeting, a board member asked about a shortfall in the town's health insurance account that was to be addressed at the Special Town Meeting on Dec. 1. Three articles for it were taken off the warrant because the town's free cash has not been certified, the board was told, and the shortfall will be taken up at the annual town meeting in April instead.

The 2024 audit, finished

Interim Finance Director Eric Kinsherf presented the audit for the fiscal year that ended June 30, 2024, which had not been done when he started. The auditors gave the town an unmodified opinion, meaning they found the financial statements fairly represent the town's position in all material respects, which he said is what bond rating agencies look for. Town officials said the auditors told them none of the issues hurt Carver's bond rating, and Kinsherf agreed.

The audit of Carver's federal grants found four problems, Kinsherf said. The town had no formal reconciliation of town meeting votes to its accounting records, which the auditors called a material weakness. The treasurer's cash book did not fully reconcile to the general ledger. Some federal grant reports were filed late, and proof that they were sent was not provided. The fourth finding, on procurement for the upgrade of the school cafeteria and food service area, the largest project the town approved with that federal money, is one the town disputed, he said, because the school department has the procurement records.

Kinsherf said fiscal 2024 was the first year on the town's new accounting software, and that turnover in the finance office and separate systems for the town and the schools added to the trouble. The firm that did the audit sent no one to present it, after the town asked about half a dozen times, officials said; Carver has since moved to a new auditor.

The new firm finished its field work on the fiscal 2025 audit over the summer and could present it within a couple of months, Kinsherf said. He is still closing the books for fiscal 2026 and correcting entries so free cash can be certified, and said that should take four to five weeks. He said he expects the findings to shrink each year. Member John Cotter asked for the records behind about $2 million in accrued sick and vacation time listed in the audit, and Kinsherf said he would look for them.

Contracts and the town meeting warrant

The board voted 3-2 to ratify an extension of Cannon's contract. The terms were not discussed in open session. The board then voted unanimously to dissolve the subcommittee that negotiated it, and approved, unanimously, an addendum adding a stipend to the contract of Operations and Maintenance Director David Siedentopf, holding off on a broader update to his contract.

The board voted unanimously to approve and post the warrant for the Dec. 1 Special Town Meeting. It recommended Article 2, on revolving funds for fees from town fields and beach tickets, with added language that keeps school properties out, and noted the Finance Committee recommended it 4-0. By a vote of 4-0 with one member abstaining, it also recommended Article 6, the Chapter 40R Smart Growth district that would rezone one parcel north of Route 44 for up to 302 homes, though members noted the board has not usually taken positions on Planning Board articles. Our preview explains Article 6. A planned article to accept the deed to 119 Main St. was dropped as not needed.

Saving for big purchases

Vice Chair Dan Ryan briefed the board on a capital funding subcommittee's work toward setting aside about $2 million a year for vehicles, equipment and other capital needs. The town's capital and debt stabilization fund holds about $1.4 million, he said, while an older capital building stabilization fund still exists but likely has little or no money in it. The subcommittee is leaning toward dedicating new payments in lieu of taxes from solar and battery storage projects to capital. Cotter said the battery storage money and about $400,000 from newer solar projects would together reach about $2 million, and argued for a mechanism only town meeting could change. The board also voted to name Fire Chief Eric Germaine to the committee in place of former Chief Craig Weston, who has retired and did not want to keep serving, the board was told.

Edaville licenses and Carver Day

For the Christmas season at Edaville, the board unanimously approved entertainment, amusement device and Sunday licenses for Edaville Operations LLC, a common victualler license for Renaissance Foods LLC, with the fee waived because the company already paid it this year for King Richard's Faire, and one-day wine and malt licenses for Railway Productions LLC on 14 dates from Nov. 27 to Dec. 27. Cotter said Saturday, Nov. 28, will be Carver Day at Edaville, the start of the Christmas season.

The board put off a vote on whether to pass up the town's right to buy land at 0 Fuller St. that is coming out of the Chapter 61A farmland program, after member Sarah Hewins asked why the filing says the land will be converted to commercial use. The town has 120 days from Oct. 8 to decide. The board also unanimously approved the Carver Cub Scouts' use of Shurtleff Park from 9:30 a.m. to 2:30 p.m. Sunday, Nov. 22, for a drive-through food collection for the Shane Gives Thanks food pantry.

What happens next

The Select Board, Finance Committee, Capital Outlay Committee and School Committee meet jointly Tuesday, Nov. 17, at Carver Town Hall, 108 Main St., to review a preliminary revenue forecast and capital requests from the schools, veterans, information technology, police and animal control, fire, EMS, operations and maintenance, the North Carver water system, planning and the Council on Aging. The water commissioners open the night at 5:30 p.m. and the budget review starts about 6 p.m. Select Board meetings are broadcast live on YouTube and recorded by Area 58 Community Access Media. The Special Town Meeting is at 6:30 p.m. Tuesday, Dec. 1, in the Carver Middle High School auditorium, 60 South Meadow Road.

Label: Reported by us, from the town's posted records.