MANCHESTER, NH — The director of Manchester’s Office of Youth Services resigned earlier this week ahead of the release of an internal audit that identified extensive misuse of public funds, missing financial documentation, and lapses in youth supervision standards.
Michael Quigley, who had led the department since December 2022, submitted his resignation to Mayor Jay Ruais while still on paid administrative leave. He had been removed from daily duties on Nov. 5, when financial discrepancies were first brought forward following an internal audit of departmental spending and activities. Youth Services Director Kristen Treacy will continue to serve as the Interim Director.
City payroll records show Quigley earned an annual salary of $97,929.90 in fiscal year 2025.
The audit findings, finalized Monday and reviewed by Manchester Ink Link, reveal what Independent City Auditor Julianne Pelletier described as “significant weaknesses in internal control and compliance,” including evidence that City purchasing cards were potentially used for personal benefit.
The 36-page report details more than two years of spending that violated City purchasing policy and lacked oversight from department leadership. Auditors reviewed more than 400 purchasing card (P-Card) transactions between January 2023 and September 2025, most initiated or authorized by the director.
Key issues included:
- $11,588 in gift cards, most purchased at Quigley’s direction, with no inventory logs, secure storage, or distribution records.
- Gift cards allegedly used as intern “compensation,” without reporting or wage documentation.
- One log showed an intern received $600 in cards; the intern later confirmed receiving only $130.
- $5,344 in meals and tips charged without agendas, attendance lists, or meeting minutes.
- More than half of those meals exceeded City policy limits.
- $6,200 in cell phone charges with no documentation explaining program use.
- $4,078 in groceries and snacks listed as youth programming without supporting records.
- $1,955 in charitable donations made with City funds.
- More than $8,600 in printing expenses, some with shipping fees nearly half the cost.
- $2,500+ in memberships and software subscriptions — Amazon Prime, Zoom, SurveyMonkey, a podcast platform and Grammarly — all linked to accounts only the director could access.
The audit also flagged online purchases totaling $15,910, including orders shipped to Massachusetts that incurred state sales tax — a cost the City is not supposed to pay.
City purchasing policy prohibits cash equivalents, donations, unapproved subscriptions, and personal use of resources. Violations can result in disciplinary action, including termination.
Financial problems weren’t the only issue identified. Staff told auditors they believed Quigley was sometimes the only adult present during youth programming, violating basic standards that require at least two adults to be in the room to protect both youth participants and staff.
The audit states lack of supervision “creates liability and safety risks for the City,” and recommends the city adopt a mandatory two-adult rule for all programs, along with documented staffing plans when absences occur.
The audit notes that staff reported the director may have used city-owned equipment to record personal podcast content after hours. The report also found technology purchases made without required review from the City’s IT department, raising questions about cybersecurity and grant compliance.
Mayor Ruais said the report underscores the need for strong oversight. The City had gone six years without an independent auditor, despite the position being required by the City Charter.
“Restoring accountability within City government has been critical,” Ruais said in a memo to the Board of Aldermen. He said the administration will move forward immediately on the auditor’s recommendations, adding that protecting public funds and youth programming “must be a top priority across every department.”
The Office of Youth Services, with an FY26 operating budget of $846,091, provides prevention and support programs for youth experiencing academic, emotional, behavioral, or family challenges. The department is now operating under interim leadership while the City reviews policies, training, and spending controls.
Ward 10 Alderman Bill Barry said in his experience with Quigley, the Office of Youth Services was doing important and effective work with a population of kids who are otherwise at risk of falling through the cracks of the system.
“It’s a shame,” Barry said. “He spent a lot of time with these kids, and went above and beyond the usual 9 to 5. All the kids, when Alderman (Kelly) Thomas and I met with them, were so proud of their accomplishments. As far as the job he was doing, I have nothing but praise.”
Barry noted that the audit is based on factual information.
“If there is any criminal investigation, that will be up to law enforcement and the city solicitor,” Barry said.