Fast forward one year later…

12/28/2022 Sheila Morse is the Town Administrator and Zon Eastes is the Chair of the SB. At 1:01:30 the SB begins a discussion that is listed on the agenda as, "Report on Funds."

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Instead of giving a report, Sheila read a motion that Zon then moved. This motion authorized the transfer of funds from Guilford's Reserve which included.
$7,432.02 to Guilford Center Bike and Ped Study
$52,732.26 to Guilford Free Library Fund
$24,000.36 to VCDP Grant for Guilford Free Library 

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However, Guilford's Reserve Fund policy  required the SB to announce that they were intending to make a transfer and hold a "Public Hearing" on the matter

It wasn't until the Annual Town Report was printed and delivered in 2024 that residents of Guilford became aware of the transaction. 

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02/16/2024 The Guilford Finance Advisory Committee (FAC) Meets. Zon Eastes and Sheila Morse co-chair the meeting. Newley appointed FAC member, Tammy Sargent, asks for a list of all the Adjusted Journal Entries (AJE’s) from Guilford’s 2022/23 professional audit. This report would have shown the AJE's from the Reserve the SB just authorized. Tammy also recommends the FAC review any AJE in the 2023/24 Audit. Zon and Sheila both seem perplexed that Tammy would want the list of AJE's

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03/06/24 After learning about the transfers in the Town report, Jason Herron emails the Town Administrator Ericka Elder, and newly reelected SB member Zon Eastes stating, "I would like to have a discussion with the selectboard concerning Guilford’s Reserve Policy. Please kindly schedule this discussion for the next meeting."

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03/07/24 Zon Replies: "The Reserve is not currently at issue for the Selectboard, so it will not be added to Monday's agenda."

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Jason responded stating, According to the town’s website: If you would like to have a topic included in the agenda, please contact the Town Administrator by noon on the Wednesday immediately preceding the meeting. 

Please Kindly put me on the agenda for the next selectboard meeting. I would like to have a discussion with the selectboard about not following their written policy.

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Zon responded: It is the job of the chair to manage the Selectboard's capacity to do its work.

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That's when Jason pointed out that Zon was just re-elected to the SB. The new board hadn't met yet to nominate a Chair. Historically, the Town Administrator acted as the Chair and the first order of business is to nominate a new chair. 

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Jason writes:

Zon, you are not currently the Chair of the selectboard so you have zero authority to prevent the town administrator from fulfilling her administrative duties concerning the agenda in the interim. If Ericka is preventing me from being on the agenda, by who’s authority is she preventing that?

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Zon replied, I'm guessing you have looked into the issue of my chairmanship? 

We will, too, and get back. Thanks.

--Zon

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Without any further explanation, Zon responds: 

Jason.  I am the chair of the Selectboard. On Mon, Mar 11, in the organizational meeting, the Selectboard will elect a chair. 

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03/11/24 After being refused a conversation with the SB, Jason Herron makes a statement at the 2:00 Minute Mark explaining many of the issues surrounding the Reserve Fund with suggested actions for the SB to correct them.

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03/12/2024 Zon replies to the corrective actions Jason requested.

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In preparation for your comments last night, I read the Reserve Policy very carefully and landed upon the same first two points you did. (...) The language, read with today’s eyes (just ten years later), suggests the very recommendations you are making now. In speaking with a signer to the policy, however, it is not clear that this ‘today’ reading was intended then. (Words, meanings, intentions do indeed change over time.) 

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NOTE: The signer of the policy Zon spoke with was Sheila Morse. Sheila helped author the Reserve fund policy in 2016 as the Chair of the SB. 

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Zon continues:

To your third point. (...) there is a way to read the policy that might have allowed the use of Reserve funds for the Bike/Ped study. I need to do a bit more research before I attempt to explain this line of thinking to you. Stay tuned. 

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I agree with you that this policy, or any, should be written to express the clearest intention of the Selectboard. (...)

Final note. I also appreciate that you supply suggested language for proposed changes or actions. The Selectboard can then consider each suggestion, and make final decisions. 

—Zon
 

04/05/24 One of Guilford’s Elected Auditors resigns. The SB is required by law to fill the vacancy “forthwith,” (immediately; without delay) as Vermont Statute § 963 requires.

4/15/24 An IRS Enrolled Agent, Lyndsey Mitchell, and FAC member, Tammy Sargent, have both submitted their Letters of Interest to fill the Auditor vacancy.

5/24/24 Professional Audit is finished early for FY2024. Year beginning July 1, 2023, ending June 30, 2024.

5/30/2024 Bob Tucker submits letter of interest in Guilford’s vacant auditor position at the deadline.

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​6/22/24 Zon Launches Campaign to replace State Representative Sarah Coffee at her house.

6/24/24 Chairman Eastes votes for his former “freelance bookkeeper” Bob Tucker to fill the Auditor Vacancy over Lyndsey and Tammy.

Also 6/24 The Guilford Selectboard voted to access the Reserve Fund when the topic was not listed on the agenda for that meeting, violating the Town Policy.

06/30/24 FY2024 ends.

7/3/24 Special Meeting for SB to take over Guilford’s Town Vault from the Town clerk who was concerned about voter integrity. At 1:04:15, Chairman Eastes motioned that “the Selectboard per 24 V.S.A. § 872, in its statutory right, will take oversite (…) of the vaults and then we will manage that as we need to manage it.” “If the selectboard is not able to receive the combinations to the vault, for whatever reason, the selectboard is at right, (…) to pursue a court order to receive the combinations."

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07/05/24 Sheila Morse resigns as Assistant Town Administrator but remains the FAC chair.

7/15/24 Guilford's Town Clerk, Danielle Latulippe, sent a message to the Elections Division of the Vermont Secretary of State's Office, expressing concerns "about a secure election." Danielle wrote, "I have had a flood of Guilford voters reach out to me with serious concerns," stating that "Zon Eastes is running for a State Representative seat, of course that means he is on the August 13th ballot. Zon has access to the vault combination where the blank ballots, returned absentee ballots and tabulator are kept."

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7/26/24 SB was confronted at another Special Meeting concerning the Town vaults which held the ballots with Zon's name on them. It was noted at this meeting that every member of the SB, including the town administrator, were listed as "empowering" Zon’s political campaign when they voted to pursue a court order for access to the vault. 

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8/14/24 Zon’s campaign accuses Jason Herron of Election Interference; Zon Wins Democrat Primary.​

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8/16/2024 Tammy requests that a review of FY24 finances be added to the FAC agenda for the 9/19/2024 meeting. Tammy states: “I would like to start looking at the financial information for FY24 as that ended June 30th and the professional audit has already begun.”

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8/21/24 Guilford’s Town clerk resigns after disclosing she was also cornered in the vault by Zon. The SB's appointed Town Treasurer was then also appointed the Town Clerk role. Also on 8/21 Tammy files a complaint to the SB about not announcing the meeting properly in June where they removed funds from the Reserve.

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09/06/2024 Sheila was advised by Zon to cancel the next FAC meeting where Tammy requested to review the FY24 budget reports. Sheila states:

I have been advised that the Selectboard will discuss the Finance Advisory Committee at one of its next meetings (not this coming Monday, 9/9). Pending the outcome of that discussion, we will NOT meet on 9/19. Stay tuned! Sheila Chair, FAC

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09/09/24 SB denies Tammy’s original complaint that an Open Meeting violation occurred concerning the Reserve Fund on 6/24/24. (Tammy will submit a reappeal to the SB)

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09/13/2024 Treasurer executes the AJE. $189,146 is transferred from the Reserve Fund without any notification to the SB. This unauthorized transaction triggered a revenue shortfall that went unrecognized until late into FY2025. This error impacted the budgets for FY’s 24, 25, and 26.

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09/20/24 Tammy sent a written request for reconsideration to the SB about violating the Reserve Fund Policy.

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09/23/24 SB Discusses Draft Auditors Report which should have shown the $189,146 AJE.

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During the SB discussion, Zon stated that the Auditor was “proposing 14 adjusted journal entries (AJE). Those 14 are down from the previous year which were 59. So, we are seeing our ability to track here in the office and make sure things are in good order. No material weakness in the towns systems of internal control. I just wanted to say that because it is a really good mark.”

Chip Carter then explains how thorough he thought the audit was and expresses that “finding only 14 AJE's is actually a really nice job.”

There was no mention that one of those AJE's was for $189,146.47 and had just transferred funds from Guilford's reserve ten day prior without any SB approval.

10/28/24 The SB conceded to Tammy’s reappeal that she filed on 8/21/24. The SB admitted that it violated the Reserve Fund Policy which requires a hearing be announced prior to approving reserve fund expenditures.

Also on 10/28 the SB discusses disbanding the FAC.

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10/2024 Guilford’s new Reserve Fund Policy was signed into effect. The primary change was replacing the requirement of a “public hearing” prior to removing funds to just a “selectboard meeting.”

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11/13/2024 Zon motions to Disband the FAC. Zon claimed that "reporting and understanding are in a better place. The Committee isn’t needed as it was created." The original committee consisted of Sheila Morse as Chair, Anne Ryder and Katie Buckley.

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Tammy then submits her signatures to run for a Selectboard seat. Minutes before the filing deadline, Sheila submitted her signatures to contest Tammy and beat her.

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04/03/25 Tammy requests a budget status report for the General Fund and receives one with handwritten notes and the phone number of Guilford’s Auditor, Cathi Wilkins. One note indicates there was $243,085.46 less than expected in tax revenue. The second note indicates that $189,146.47 was removed from the Reserve fund which was “needed to replace shortfall.”

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04/28/24 First Auditors meeting with newly elected auditors Lyndsey and Rita. There was no mention of the budget issue by Guilford’s Treasurer or Auditor.

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06/2025 The Professional Auditor informs the Town of her finding. The report indicated that Guilford residents had voted on budgets that were calculated and presented incorrectly for the last three years causing $623,763 in revenue shortfalls.

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08/25/25 SB is notified of the Auditor’s finding.

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09/08/2025 Selectboard Discusses Auditor Finding

Town Administrator, Ericka Elder starts at 47:00. Concerning the Auditor finding, Ericka states, “we knew about the one for FY24 when we say that 189 thousand was removed from the Reserve to the General fund based on the shortfall, but it wasn’t really questioned at the time. Although the auditor says that the reason for that could have been delinquent taxes."

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However, at 58:10, the Town Treasurer states that “we don’t count on bringing in delinquent taxes in our budget.” 

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So, how could the professional auditor attribute $189,000 in a budget shortfall to “delinquent taxes” when the Town doesn’t budget for delinquent taxes?

Nevertheless, following the Town Administrator’s claim that “we knew” about the 189 thousand that was removed from the Reserve, Sheila Morse states, “we only learned about this and the impact in the last two weeks. (…) Everyone was looking at the report, but no one made the discover until recently. Except that Chip was asking questions a few months ago about the shortfall in the budget for 2024.”​

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Sheila Morse then states that “the SB gets a chance to review the draft audit before it is published and approved. This is something that is mind numbingly boring, I guarantee you. Having looked at it line by line by line for several years, but not the last three years I confess.”

That last statement, which was made on 9/08/25 is a bold face lie. Sheila was Guilford’s Assistant Town administrator until 7/05/24 and remained the FAC chair until it was eliminated on 11/13/24. Sheila was in the thick of all this mess and tried to jump ship when she could, but Tammy ran for a Selectboard seat.

Also on 9/8/25 The Selectboard had to rescind the vote where they previously assigned $68,000 to a Law Enforcement Fund. That money was approved at Town Meting and can only be used for which it was raised. However, the auditor informed the SB that there were no funds to support their action.

10/18/25 SB Votes to Retroactively Authorize the Transaction from Guilford’s Reserve. The SB meeting is led by Sheila Morse, instead of Chairwoman Verandah Porsche, who is attending remotely. Note: Verandah has run several meetings remotely in the past.

Sheila starts by stating that the SB would not be discussing the Revenue Shortfall because they have already discussed it. Instead, Sheila stated "we are looking for a motion to rectify the failure of the former SB to vote on Adjusting Journal Entries and Transfers."

Chip was preoccupied typing on his computer when Sheila asked him if he would like to make that motion. Chip states, I will, yeah, I will second that motion, how’s that?

Sheila replies, a, no, ok, I will move that we ratify the transfer of $189,146 from the oo7 reserve fund to cover the FY 2024 revenue shortfall and any other Adjusting Journal Entry’s as recommended by the professional audit FY end in September of 2024. Chip Second’s the motion.

Sheila, I will say that this is something that is normally done every year, a year ago, it was not done. It was an oversight. (…) Sheila then asks if there is any discussion amongst the SB. There was none.

Tammy, looking for some clarification, asked if the funds got transferred without the SB saying to transfer them. Sheila states, “that is correct.”

Verandah then steps in (remotely) and states that, (…) I think that the conversation about the transfer happened and there was a missing piece. The missing piece was, that after the clarifying conversation, a vote was not taken. (…)

The Town Treasurer then talks about the reports she sends the SB on a regular basis. When she’s finished Sheila responds to her. "So thank you, it’s something that’s really close to my heart, wanting to have these budget status reports. Everybody knows I always bug you about them."

Dolores Clark asks, Is that something new, those budget reports? Sheila and Ellie both say No. Ellie says those budget status reports have been going on for a long time.

Nothing to see here folks just an "oversight" according to Sheila.