ORANGE — Town officials believe they are already in compliance with 10 remedial measures that were recommended by the Office of the Inspector General after discovering that Orange lacked formal policies regarding credit card use by employees.

The Office of the Inspector General, an independent state agency that prevents and detects fraud, waste and abuse of public money, found no improper use of the town credit card, according to a March 18 letter to the town. However, the office learned that Orange did not reconcile its credit card payments with the statements, a control weakness that resulted in overpayments to the account in previous years.

One such instance in January 2022 reportedly resulted in a $7,532.90 overpayment, and a separate occasion saw the town pay a $41.87 improper credit card charge for sales tax on June 28, 2021, despite the municipal exemption provided by state law.

“In closing, the Town of Orange is fortunate that its ill-defined accounts payable process and lax oversight of town credit card expenditures did not result in misappropriated funds,” the state’s letter reads. “Implementing rigorous policies on reconciliations and credit card use will assist the town in being an effective, transparent steward of public resources and protect the public treasury from improper use.”

Amber Robidoux, the town’s treasurer and human resources director, sent a letter to state Inspector General Jeffrey Shapiro on March 18 to confirm receipt of the state’s letter and explain the measures already in place.

“If you see room for improvement, please share with us, so that we may better increase our internal controls and processes,” she wrote.

In her letter, Robidoux explained Orange has only one credit card, which is reconciled monthly. It is, as the Office of the Inspector General suggested, under the town’s name and not connected to anyone’s Social Security number. Robidoux also said previously used credit cards have been discontinued.

Robidoux’s letter goes on to state the new town credit card was opened in May 2023 and had restricted use until the Town Credit Card Policy was implemented a few months later. Credit card use by employees is covered within this written policy — employees are required to read and sign the policy, acknowledging the credit card’s proper use, and that documentation is kept in the town’s files.

Robidoux explained she manages this credit card and has no intention of opening other accounts. She added that department heads are required to submit their bill schedule and invoices to the town accountant.

“The issue I had with the credit card was that it bypassed the accountant’s office,” Robidoux wrote. “The accountant and I worked on a system that met both of our offices’ needs.”

According to the state’s letter, Orange established a credit card account in June 2005. The bank reportedly stated the town could not open a credit card in its name, because the account had to be linked to a Social Security number and, as a result, the town credit card was in the name of either the town accountant or the town administrator between 2005 and 2023.

Gabriele Voelker, the former town administrator who retired in March 2023, also held the position of town treasurer. She had sole control of the credit card between 2018 and 2023. When making purchases for the town, Voelker provided the invoice or receipt to the former town accountant and noted that the payment had to be made to the town credit card. However, Voelker did not provide copies of the credit card statements to the town accountant or any other municipal employee. She reportedly told the Office of the Inspector General that the credit card statements were destroyed and that the town stopped using the credit card upon her retirement.

“The town established a new credit card account in the town’s name that is not linked to a Social Security number,” the state’s report reads.

The Office of the Inspector General also recommended ensuring checks are properly recorded in a check register, that payroll checks be used only for payroll and that voided checks be appropriately noted. However, Robidoux wrote in her response to the state that her check register is maintained and kept clean within the proper accounts. All reissued checks have a paper trail indicating what check was voided, as well as the date and amount.

Robidoux also wrote that departing employees’ access to bank accounts and other town property is immediately restricted.

“We follow an offboarding process that was implemented when I started in the HR office back in 2021,” she wrote.

Town Administrator Matthew Fortier clarified that the credit card matter is unrelated to the town having paid $338,000 in fraudulent invoices in the summer of 2023. That case is being investigated by the Orange Police Department, the Northwestern District Attorney’s Office and the FBI.

Reach Domenic Poli at: dpoli@recorder.com or 413-930-4120.