from "A guide to financial management for town officials" published by the MA division of local services.



The town accountant should also prepare interim financial reports during the fiscal year. Interim financial reports allow local officials to compare their actual financial status to their projected financial situation (budget vs. actual, year-to-date revenues and expenditures). Interim financial reports are the principal means by which local officials can monitor an annual budget during the fiscal year. They provide information necessary to alert management to potential fiscal problems.


Department heads usually prepare their own budgets. Each departmental budget is created within the framework and guidelines set by the finance committee, selectmen, manager or some combination of the three, and finally by the town meeting. Department heads are usually very active in the budget review process, attempting to persuade those reviewing the budget of the value of their department’s services and the reasonableness of their budget requests. Once the budget is approved, department heads have direct responsibility for ensuring that they spend within the allocated amount



Finally, it is important to provide timely interim financial reports to the other financial officer s i n town . These report s facilitate communication among the various fiscal officer s an d provide a common basis for making policy decisions . A t a minimum, monthly report s that compare revenues receive d an d expenditures mad e against the budge t a r e critical planning an d control tool s for the boa r d o f selectmen, finance committee and department heads . Narrative explanation s accompanying the numbers in a report ca n dramatically increase the report’ s value . To complement the written reports , an accountant might consider making oral presentations several time s a year to the selectmen an d finance committee on the town’ s financial condition.


posted by Jeff Bennett