TROY, Maine — Police are investigating financial discrepancies indicating that more than $20,000 is missing from the town office, according to Sharon Moody, the new town treasurer.

Moody said Tuesday the discrepancies were discovered earlier this year when the town’s auditing firm of Keel Hood from Fairfield found that deposits listed in the town’s financial books did not match deposits made to the bank. Checks paid to the town were being deposited, but cash paid by residents was often not being deposited.

“That was a big red flag right there,” Moody said. “That’s a lot of money for a small town.”

The town’s former treasurer, Kathy Mattingly resigned on March 29. Moody was then appointed by selectmen to serve as treasurer — a job she had held for 22 years until she retired in January 2012, when Mattingly replaced her.

Moody said she has worked for the past few months on reconstructing the town’s financial records. She said records were very incomplete, out of order and with many inconsistencies. Moody said her work and that of the auditor found that more than $20,000 was missing.

When contacted by the BDN on Tuesday, Mattingly said she resigned in March for health reasons. She said the last time she spoke with the chairman of the board of selectmen, Brian Piper, she was told that some money was unaccounted for. She declined to comment further.

When Piper was contacted and asked about the missing money, he said that he would “not comment on an ongoing investigation.”

Moody said information has been turned over to the Waldo County Sheriff’s Office, and that she met with a detective from the department on Tuesday.

A telephone message was left with the sheriff’s office on Tuesday, but not returned. District Attorney Geoffrey Rushlau on Tuesday would not comment on whether there is an ongoing investigation.

Residents were not told about any financial discrepancies during Monday night’s special town meeting. But voters were asked for, and they approved spending $9,000 for computer software, hardware and training expenses to computerize the town’s accounting functions, Moody said.

Troy has 1,030 residents, according to the 2010 U.S. Census.

The town raised $798,000 in taxes last year.