TROY, Maine — The former town clerk and treasurer for the town was arrested Wednesday and charged with stealing more than $20,000 from the town.

Kathy Mattingly, 56, of Troy was arrested and charged with felony theft, according to Waldo County Sheriff Scott Story. She was taken to the Waldo County Jail in Belfast and released on $10,000 unsecured bail, the sheriff said.

The sheriff said Detective Gerry Lincoln had been investigating the case.

Mattingly was appointed town clerk and treasurer by the Board of Selectmen in January 2012. She resigned her position on March 29.

Contacted Tuesday, Mattingly said she had resigned for health reasons. She also declined to comment Tuesday when asked whether she had stolen the money.

Sharon Moody, who was hired by the town in March to succeed Mattingly, said Tuesday financial discrepancies were discovered earlier this year when the town’s auditing firm, Keel Hood of 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.”

Moody also said she found that Mattingly had written $2,500 in checks to herself in the six weeks before she resigned.

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

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.