Audit shows roughly $1.9 million interfund balance; selectmen schedule joint review with water commissioners and auditors

A financial review presented to the Milford Board of Selectmen on Monday showed roughly $1.9 million in interfund due‑to/due‑from balances between the town’s general fund and its water and sewer enterprise funds. The board agreed to convene the town auditor and water commissioners to clarify the cause and to determine options for reconciliation.

Finance Director Troy summarized internal work papers and audit adjustments and told the board the auditors’ review made only modest adjustments to town records (about $7,340), but that the combined water and sewer due‑to/due‑from total stood at roughly $1.9 million. "We were pretty spot on as far as where we were in that," Troy said, describing the auditor’s confirmation of the ledger snapshot. The finance director outlined that the historic balance reflects timing and coding differences over many years, with cash receipts and cross‑fund transactions sometimes netting in ways that left the balance unreconciled.

Selectmen asked whether the town should expect to recover the balance as accounts receivable or treat it differently. Concerns focused on whether past practice allowed the town to subsidize enterprise fund expenses and on the need for clearer accounting and reporting going forward. Selectwoman Tina Philberg and multiple board members asked for a joint session involving the town auditor, the water commissioners and the finance office so all parties hear the same presentation and can agree on next steps. The chair said the town would schedule a future meeting with auditors and water‑utility leadership; no vote to write off the balance was taken.

Board members discussed potential remedies, including a formal repayment schedule from the water/sewer funds, reallocation of specific fees such as hydrant fees, or other long‑term adjustments, but they did not select a preferred approach. Several members emphasized that the enterprise funds now maintain their own receipts and accounting and that moving forward the town must ensure consistent, timely reporting so the imbalance does not recur.

The board asked staff to arrange a joint meeting with the auditor and water commissioners and to prepare background documentation that traces the historical transactions and current balances so the commissioners and selectmen can evaluate remedial options.