UPDATE: Point Boro Extends Accounting Probe Of Tax Collection

Point Pleasant Boro Council approved an expansion of an ongoing investigation of theft in the Tax Collector's Department last week.

Holman, Frenia Allison PC will receive up to $22,000 for a "forensic examination of certain books and records pertaining to transactions involving the Tax Collector's Department." 

The accounting firm said it will determine the theft, loss and exposure; quantify it; assist in asset recovery; and recommend financial controls to prevent theft and/or fraud.

Schroeder said this is part of an ongoing investigation and Ocean County Prosecutor's Office had recommended hiring a forensic accountant. 

"A theft was in the office, but we're trying to identify the person," Schroeder said. The investigation will look at the time, dates and who was doing accounting entries for the Borough. No accusations have been made, Schroeder said.

The Borough had previously approve spending $35,000 in this investigation.
Forensic accountants are typically hired to uncover fraud or value assets by reconstructing financial records, assessing accounting systems and uncover whether financial records match with reality.

This differs from the role of auditors, who assess whether financial statements fairly represent the financial condition of an organization. Auditors typically take samples of a company's financial statements to test their accuracy, but that is sometimes not enough to uncover fraud.

Tax Collector Named in Suit

Separate from the fraud allegations, a former employee of the borough filed suit earlier this month against the borough, Borough Administrator David Maffei and Tax Collector Bernadine Pearce for creating a hostile work environment.

Ann Marie Diehl, a resident of Donna Drive, told the Council that the environment that Pearce created, including having an urn containing the "ashes of problem employees," was "beyond incomprehensible."
Borough officials declined to comment on the lawsuit.