Annual Town meeting, May 16, 2016
Article 3 - financial transfers: equal a pay raise for highway superintendent.
Change the amount of 1000-510-500-51-5110-000/Board of Health/from $75.00 to
$80.00.
Change the amount of 1000-421-400-51-5110-0000/Highway Super/from $75.00 to
$80.00
this is a transfer from board of health to highway superintendent salary, you can check the account number from posting on town web site.
Add lines 1000-294-200-51-5115-0000/Tree warden/$2,500 and 1000-421-400-51-
5110-0000.
Passed Unanimously/May 16th @ 11:03am
This is the part at town meeting, if you were there, you saw the selectmen and town account have a pow wow and then town accountant said tree warden salary would be reclassified so the tree warden salary account would be added to highway superintendent salary, there was an issue of the highway superintendent receiving two pay checks. It is on video I believe. That is a pay raise no matter how you call it.
Also, on the budget handout which was available on a table, line item by line item, it shows a salary of $3000.00 for tree warden. Under highway administration, it shows a total of $411,093.00
On Town website, under summary, it shows highway administration total of $414,094.00 which is a difference of $3001.00.
On the handout, it shows salary for highway super at $63,392.00 and on town website, it shows salary for highway super at $66,392.00. So does that look like a raise or what?
You can check this out on Templeton town website, under town meeting. You can also look at the budget line items on the Templeton town website to look at the account numbers.
enjoy.
posted by Jeff Bennett
Sunday, June 5, 2016
- Posted Jun. 4, 2016 at 8:02 PM
WEBSTER — For the second consecutive year, Finance Committee Chairman Michael Finamore is acting to delay the annual town meeting slated to begin Monday night.
Pointing the blame at acting Town Administrator Pamela A. Leduc, Mr. Finamore said, “The board cannot make an informed decision when they do not have a complete, accurate accounting of the budget and free cash.”
Ms. Leduc did not return a phone message to her office Friday.
Mr. Finamore said, “She insists we have a full budget. I’m insisting we don’t have a full budget. The selectmen are going to be taking up the water rate again Monday night.
“If they have to take up the water rate, because they used retained earnings and it hasn’t been certified, we don’t have a full budget. I can’t in clear conscience make a decision to bring it to the town meeting floor without a full disclosure of the budget. Our job is to obtain the information and to inform the people and let them decide. We have nothing to inform them on because we don’t have the information needed.”
The fiscal 2017 budget is about $39.9 million.
Because retained earnings and free cash aren’t certified, Mr. Finamore said, “We can’t make a determination on that. We don’t know what the state is going to do.”
Mr. Finamore said he has informed Town Moderator Thomas V. Ralph Sr. of his plan. He said, “The finance board is going into the meeting without any recommendations, and it’s against state law for them to have a meeting without recommendations of the finance board. The interim town administrator has failed to inform (us) in a timely and proper manner.”
Reached Friday, Mr. Ralph said he would not discuss what’s going to happen until he had all the information from all of the involved people. He suggested his research of the matter would carry into the weekend.
Mr. Finamore also said he took exception to the $559,000 budget for the South Worcester County Communications Center, serving Webster and Dudley in the Webster Police Department, because it is not itemized for the benefit of the public.
Mr. Finamore said he was told the center is a separate entity and such details aren't needed. He disputes that suggestion.“If I were to come on the town meeting floor and tell you, accept this budget as presented, and this (dispatch center budget) is in there, and then tomorrow, the dispatch director gives everyone $150,000 raises, you’d call the finance board idiots,” Mr. Finamore said.
Mr. Finamore said Ms. Leduc had told him that, despite the finance board’s concerns, “she’s going to go on the town meeting floor; she’s going to hold the meeting.”
“I said, you do that and I will be before the Inspector General’s office Tuesday morning and the courts. She knows I’ll do it.”
Last year, Mr. Finamore successfully moved to delay the annual town meeting until the eve of the start of fiscal 2016, which began last July 1. He said at that time the finance board did not get a chance to review the budget and make recommendations to town meeting, as called for by the home-rule charter.
But the dynamics of last year’s delay differ from this year's issue.
“I did it on the town meeting floor,” Mr. Finamore recalled. “She created the problem last year, but, (town counsel law firm) Kopelman & Paige, selectmen, and her and I came to an agreement, that if they allowed me to hold a meeting, I would not scream, kick and holler that it was not a legitimately advertised and posted meeting, and the FinComm would come back with recommendations” for the fiscal 2016 budget.
posted here by Jeff Bennett
Templeton Board of Selectmen
Town Hall, 160 Patriots Road, East Templeton
Monday, June 6, 2016, 6:30 p.m.
Amended Agenda
6:30 P.M. Call to Order
Pledge
Discuss possible Special Town Meeting & Warrant Article for Utilization of Stabilization Fund
for Police & Fire Departments
Action on All-Committee Meeting
Action on Joint Board of Selectmen & Advisory Committee Meeting
Animal Control Office Update
Police Chief Updates
Fire Chief Updates
Highway Department Updates
Action on Town Administrator Search
Scout Hall Update
New Business
Selectmen’s Comments
Adjourn
The listing of Agenda items is those reasonably anticipated by the Chair which may be discussed at the meeting. Not all items listed may in fact be discussed and other items not listed may also be brought up for discussion to the extent it is permitted by law. THIS AGENDA IS SUBJECT TO CHANGE
posted by Jeff Bennett
Budget season is almost here;
Audits:
Objective
To review the different reports that are part of the Town’s annual audit.
Basic Financial Statements
Management Letter
Schedule of Federal Awards
To focus on what is important to know
To discuss what cannot be found in the financial statements
Private-Sector versus Governmental Financials
Private-sector businesses, despite what they sell, share a common goal – Profit.
The primary goal of governments is to provide Services.
Service quality, unlike profit, is not a financial concept.
Because there is no profit motive, the need exists for defining performance measurement
in the public-sector.
Governmental financial statements have not played the same role in assessing performance
as they do in the private-sector.
Who Makes the Rules?
For Private-Sector financial statements the Financial Accounting Standards Board (FASB)
is the nationwide body that establishes the form and content of the statements.
For Governmental financial statements the Governmental Accounting Standards Board
(GASB) is the nation-wide body that establishes the form and content of the statements.
The GASB provides the standards on how to prepare financial statements in accordance with
Generally Accepted Accounting Principals (GAAP).
Users such as investors and rating agencies rely on the consistent application of GAAP.
This is the only way users can assess the financial position of one government compared
to another.
It is important to remember that the GASB and FASB are independent bodies not associated
with either the Federal or State governments.
The standards are not a Federal or State Mandate.
Massachusetts General Laws along with the Department of Revenue (DOR) establishes the
accounting standards are unique only to Massachusetts governments.
The financial statements include budget to actual statements prepared in accordance with
accounting standards established by the DOR.
The DOR accounting standards are known as the Uniform Municipal Accounting System
(Umas).
Umas is different than GAAP and therefore General Fund Unassigned Fund Balance is
normally different than Free Cash.
Role of an Independent Auditor
The Financial Statements are not the “Audit Firm’s” Statements, they are management
of the Town.
The audit firm examines the Town’s financial statements for the purpose of rendering
an opinion on whether the financial statements are fairly presented in accordance with GAAP.
Independent Auditor’s Report
When you review an audited financial statement this is the first thing to look at.
This will tell you if there is anything seriously wrong with the financial statements.
It will also tell you if the statements are OK.
Look at the DATE of the report as this can be an indication of potential management issues.
The Independent Auditor’s Report is comprised of several section
Sections of the Auditor’s Report
Report on the Financial Statements
This defines the statements being audited
Management’s Responsibility for the Financial Statements
This tells the reader that management is responsible for the fair presentation in accordance with
GAAP; that management is responsible for Internal Controls; and free from material
misstatement due to error or fraud.
This is part of post on financial audits with regards to public sector or government, municipalities as in cities and towns. There will be more to follow. It is an attempt to provide information to residents of Templeton with regards to audits that have been talked about with some frequency at meetings of the board of selectmen. This material comes from a presentation by an individual who is a certified public accountant at a firm that performs municipal audits.
posted by Jeff Bennett
Audits:
Objective
To review the different reports that are part of the Town’s annual audit.
Basic Financial Statements
Management Letter
Schedule of Federal Awards
To focus on what is important to know
To discuss what cannot be found in the financial statements
Private-Sector versus Governmental Financials
Private-sector businesses, despite what they sell, share a common goal – Profit.
The primary goal of governments is to provide Services.
Service quality, unlike profit, is not a financial concept.
Because there is no profit motive, the need exists for defining performance measurement
in the public-sector.
Governmental financial statements have not played the same role in assessing performance
as they do in the private-sector.
Who Makes the Rules?
For Private-Sector financial statements the Financial Accounting Standards Board (FASB)
is the nationwide body that establishes the form and content of the statements.
For Governmental financial statements the Governmental Accounting Standards Board
(GASB) is the nation-wide body that establishes the form and content of the statements.
The GASB provides the standards on how to prepare financial statements in accordance with
Generally Accepted Accounting Principals (GAAP).
Users such as investors and rating agencies rely on the consistent application of GAAP.
This is the only way users can assess the financial position of one government compared
to another.
It is important to remember that the GASB and FASB are independent bodies not associated
with either the Federal or State governments.
The standards are not a Federal or State Mandate.
Massachusetts General Laws along with the Department of Revenue (DOR) establishes the
accounting standards are unique only to Massachusetts governments.
The financial statements include budget to actual statements prepared in accordance with
accounting standards established by the DOR.
The DOR accounting standards are known as the Uniform Municipal Accounting System
(Umas).
Umas is different than GAAP and therefore General Fund Unassigned Fund Balance is
normally different than Free Cash.
Role of an Independent Auditor
The Financial Statements are not the “Audit Firm’s” Statements, they are management
of the Town.
The audit firm examines the Town’s financial statements for the purpose of rendering
an opinion on whether the financial statements are fairly presented in accordance with GAAP.
Independent Auditor’s Report
When you review an audited financial statement this is the first thing to look at.
This will tell you if there is anything seriously wrong with the financial statements.
It will also tell you if the statements are OK.
Look at the DATE of the report as this can be an indication of potential management issues.
The Independent Auditor’s Report is comprised of several section
Sections of the Auditor’s Report
Report on the Financial Statements
This defines the statements being audited
Management’s Responsibility for the Financial Statements
This tells the reader that management is responsible for the fair presentation in accordance with
GAAP; that management is responsible for Internal Controls; and free from material
misstatement due to error or fraud.
This is part of post on financial audits with regards to public sector or government, municipalities as in cities and towns. There will be more to follow. It is an attempt to provide information to residents of Templeton with regards to audits that have been talked about with some frequency at meetings of the board of selectmen. This material comes from a presentation by an individual who is a certified public accountant at a firm that performs municipal audits.
posted by Jeff Bennett
Budget season is almost here - continuation;
Independent Auditor’s Report
Sections of the Auditor’s Report
Auditor’s Responsibility
This section states that the Auditor is responsible for expressing an opinion.
That the audit is conducted in accordance with Generally Accepted Auditing Standards
(GAAS) and Governmental Auditing Standards.
That the audit was planned; risks were assessed; accounting policies evaluated; internal
controls were considered; that no opinion will be given on the effectiveness of internal control.
Opinions
If the auditor opinion believes that the financial statements are fairly presented in accordance
with GAAP this section will tell you this.
If the auditor does not believe the financial statements are fairly presented the opinion will
be Qualified.
Qualified Opinions are usually a bad sign and you should understand the qualification.
Management Letter
At the conclusion of each audit a management letter may issued by the Independent Auditor.
It is not required if there are no findings that are considered significant.
It is a good idea to get a copy of recent management letters before you start reviewing the
actual financial statements.
The management letter does not provide an opinion but instead deals with the Auditor’s
evaluation of the Town’s internal control over financial reporting.
The internal control evaluation is limited and will not identify all weaknesses.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent or detect misstatements on a timely basis.
A Material Weakness is the most serious finding.
A material weakness is a deficiency or a combination of deficiencies in internal control, such
that there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected on a timely basis.
One common example is that the Town did not reconcile Cash for the entire year.
Cash is a material item and an undetected error could lead to a material financial
statement misstatement.
Since it was not performed at all the internal control is not timely.
A Significant Deficiency is a level down from a material weakness but is still serious. Significant deficiencies must also be communicated in writing to management.
A significant deficiency is similar to a material weakness only that the possible financial statement
error is a low dollar value.
One example is that the Town did not have an internal control policy on the timeliness of the
Council on Aging receipts.
An Other Matter is normally a finding that does not have any significant financial impact but it is a best practice recommendation.
For example, Cash may be reconciled each month but the process is entirely manual and time
consuming. The suggestion may be to automate the process to be more efficient.
All of these findings will provide insight into how well your community is managed.
This information is from a presentation by a certified public accountant on financial audits.
posted by Jeff Bennett
Independent Auditor’s Report
Sections of the Auditor’s Report
Auditor’s Responsibility
This section states that the Auditor is responsible for expressing an opinion.
That the audit is conducted in accordance with Generally Accepted Auditing Standards
(GAAS) and Governmental Auditing Standards.
That the audit was planned; risks were assessed; accounting policies evaluated; internal
controls were considered; that no opinion will be given on the effectiveness of internal control.
Opinions
If the auditor opinion believes that the financial statements are fairly presented in accordance
with GAAP this section will tell you this.
If the auditor does not believe the financial statements are fairly presented the opinion will
be Qualified.
Qualified Opinions are usually a bad sign and you should understand the qualification.
Management Letter
At the conclusion of each audit a management letter may issued by the Independent Auditor.
It is not required if there are no findings that are considered significant.
It is a good idea to get a copy of recent management letters before you start reviewing the
actual financial statements.
The management letter does not provide an opinion but instead deals with the Auditor’s
evaluation of the Town’s internal control over financial reporting.
The internal control evaluation is limited and will not identify all weaknesses.
A deficiency in internal control exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions,
to prevent or detect misstatements on a timely basis.
A Material Weakness is the most serious finding.
A material weakness is a deficiency or a combination of deficiencies in internal control, such
that there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected on a timely basis.
One common example is that the Town did not reconcile Cash for the entire year.
Cash is a material item and an undetected error could lead to a material financial
statement misstatement.
Since it was not performed at all the internal control is not timely.
A Significant Deficiency is a level down from a material weakness but is still serious. Significant deficiencies must also be communicated in writing to management.
A significant deficiency is similar to a material weakness only that the possible financial statement
error is a low dollar value.
One example is that the Town did not have an internal control policy on the timeliness of the
Council on Aging receipts.
An Other Matter is normally a finding that does not have any significant financial impact but it is a best practice recommendation.
For example, Cash may be reconciled each month but the process is entirely manual and time
consuming. The suggestion may be to automate the process to be more efficient.
All of these findings will provide insight into how well your community is managed.
This information is from a presentation by a certified public accountant on financial audits.
posted by Jeff Bennett
continuation - municipal financial audits;
Before the Annual Audited Financial Statements
Audited Financial Statements come out once per year and usually between 1 to 7 months after
year-end.
Information received as a Finance Committee member during the year will do more to set
expectations of what you will see in the audit
The Budgetary Process sets the most important stage for the audited results.
The General, Enterprise and Stabilization are budgeted funds that with determine your overall
financial position.
Do you receive Interim Reports?
How often?
Is a management narrative attached?
Are there many significant changes close to year-end?
How are the Financial Statements Prepared
Umas budgetary basis foundation is how the day-today accounting is maintained
Using the budgetary numbers several adjustments are made to build to the Fund Based Modified
Accrual Basis of Accounting GAAP Statements
Using the Modified Accrual numbers long-term assets and liabilities are added to get to the Full
Accrual Entity-wide Statements.
Each layer is the foundation for the next level.
Financial Statement Components
Independent Auditor’s Report
Management’s Discussion and Analysis
Entity-wide Financial Statements
Governmental Fund Based Financial Statements
Proprietary Financial Statements
Fiduciary Financial Statements
Budgetary Financial Statements
Notes to Financial Statements
Required Supplementary Information
How Do I Start My Review?
The best place to start the review is the financial statement that is most familiar to you
The General Fund Budget to Actual Statement.
The next statement is the General Fund within the Governmental Funds.
Next is the Major and Non-major Governmental Funds
Next is the Governmental Activities on the Entity-wide Statements
To understand the changes between the modified accrual and full accrual governmental activities
use the Reconciliation Statements.
Move to the Internal Service Funds which most times is an Self-insured Health Trust fund.
The last financial statement to review are the Enterprise funds (Water/Sewer etc.)
Finally read the MD&A, Notes and Required Supplementary Information.
posted by Jeff Bennett
Before the Annual Audited Financial Statements
Audited Financial Statements come out once per year and usually between 1 to 7 months after
year-end.
Information received as a Finance Committee member during the year will do more to set
expectations of what you will see in the audit
The Budgetary Process sets the most important stage for the audited results.
The General, Enterprise and Stabilization are budgeted funds that with determine your overall
financial position.
Do you receive Interim Reports?
How often?
Is a management narrative attached?
Are there many significant changes close to year-end?
How are the Financial Statements Prepared
Umas budgetary basis foundation is how the day-today accounting is maintained
Using the budgetary numbers several adjustments are made to build to the Fund Based Modified
Accrual Basis of Accounting GAAP Statements
Using the Modified Accrual numbers long-term assets and liabilities are added to get to the Full
Accrual Entity-wide Statements.
Each layer is the foundation for the next level.
Financial Statement Components
Independent Auditor’s Report
Management’s Discussion and Analysis
Entity-wide Financial Statements
Governmental Fund Based Financial Statements
Proprietary Financial Statements
Fiduciary Financial Statements
Budgetary Financial Statements
Notes to Financial Statements
Required Supplementary Information
How Do I Start My Review?
The best place to start the review is the financial statement that is most familiar to you
The General Fund Budget to Actual Statement.
The next statement is the General Fund within the Governmental Funds.
Next is the Major and Non-major Governmental Funds
Next is the Governmental Activities on the Entity-wide Statements
To understand the changes between the modified accrual and full accrual governmental activities
use the Reconciliation Statements.
Move to the Internal Service Funds which most times is an Self-insured Health Trust fund.
The last financial statement to review are the Enterprise funds (Water/Sewer etc.)
Finally read the MD&A, Notes and Required Supplementary Information.
posted by Jeff Bennett
Budget season -- Audits, continuation;
General Fund Key Areas
The Fund Based General Fund revenues, expenditures and transfers should be close to the
budgetary results. However GAAP throws a couple of curve balls to complicate the comparison.
Most of the key analysis of this fund was accomplished in the budget/actual statement.
GAAP requires that most stabilization funds be combined with the General Fund for the fund
based presentation.
The rational is the Stabilization Fund is just a sub-fund of the General Fund since it is usually
funded by GF contributions.
Therefore the Fund Balance will look a lot higher than your free cash calculation. The Notes
should detail these amounts.
Balance Sheet
The Balance Sheet should be reviewed with the last few years. The Town services provided is
usually pretty consistent year-to-year and therefore the balance sheet amounts should be
consistent.
Focus your review on any significant changes.
Recently I completed a forensic audit on a Town that showed outstanding receivable balances
increasing by significant amounts over the past several years. This was a red flag that funds were
being stolen however it went undetected.
Stabilization Funds
As just stated the Stabilization Funds are combined with the General Fund for financial statement purposes.
Read the notes and MD&A to determine how these funds are either accumulating or depleting.
It may be best to receive this information directly from the Town Accountant.
Other Governmental Funds
Within the Governmental Fund Based Statements are Special Revenue, Capital Projects, Debt Service and many Trust Funds.
The special revenue and trust activity are usually self-supporting and recurring such as school state
and federal grants.
These should not cause much concern unless there are significant accumulated surpluses or
deficits.
If there are any significant deficits then the notes are required to disclose these amounts. If there
not a future revenue
source then the General Fund will have to fund the deficit.
Any significant surplus will be difficult to find by just reviewing the financial statements so
you should request a fund analysis from the Town Accountant.
The Capital Project Fund is also included within this statement. Capital Projects can carry a
temporary deficit at any time during the project based on the timing of borrowing and grants
being received. The financial statements may show a deficit if a Bond Anticipation Note is
outstanding and the project has not been permanently financed.
If there is a financial statement deficit you should ask the Town Accountant if there is any
projected permanent deficit.
Major and Non-major Funds
GAAP requires that any “Major” Fund be presented in its own column based on certain criteria.
What is normally seen is a Major Capital Project such as a new high school or Community
Preservation.
All other funds are accumulated in the single column for Nonmajor funds. Unless you prepare
a CAFR this detail will not be found.
These funds are not budgeted and most times are not part of a Finance Committee review.
You may want to request the detail to see if any other available funds are available.
posted by Jeff Bennett
General Fund Key Areas
The Fund Based General Fund revenues, expenditures and transfers should be close to the
budgetary results. However GAAP throws a couple of curve balls to complicate the comparison.
Most of the key analysis of this fund was accomplished in the budget/actual statement.
GAAP requires that most stabilization funds be combined with the General Fund for the fund
based presentation.
The rational is the Stabilization Fund is just a sub-fund of the General Fund since it is usually
funded by GF contributions.
Therefore the Fund Balance will look a lot higher than your free cash calculation. The Notes
should detail these amounts.
Balance Sheet
The Balance Sheet should be reviewed with the last few years. The Town services provided is
usually pretty consistent year-to-year and therefore the balance sheet amounts should be
consistent.
Focus your review on any significant changes.
Recently I completed a forensic audit on a Town that showed outstanding receivable balances
increasing by significant amounts over the past several years. This was a red flag that funds were
being stolen however it went undetected.
Stabilization Funds
As just stated the Stabilization Funds are combined with the General Fund for financial statement purposes.
Read the notes and MD&A to determine how these funds are either accumulating or depleting.
It may be best to receive this information directly from the Town Accountant.
Other Governmental Funds
Within the Governmental Fund Based Statements are Special Revenue, Capital Projects, Debt Service and many Trust Funds.
The special revenue and trust activity are usually self-supporting and recurring such as school state
and federal grants.
These should not cause much concern unless there are significant accumulated surpluses or
deficits.
If there are any significant deficits then the notes are required to disclose these amounts. If there
not a future revenue
source then the General Fund will have to fund the deficit.
Any significant surplus will be difficult to find by just reviewing the financial statements so
you should request a fund analysis from the Town Accountant.
The Capital Project Fund is also included within this statement. Capital Projects can carry a
temporary deficit at any time during the project based on the timing of borrowing and grants
being received. The financial statements may show a deficit if a Bond Anticipation Note is
outstanding and the project has not been permanently financed.
If there is a financial statement deficit you should ask the Town Accountant if there is any
projected permanent deficit.
Major and Non-major Funds
GAAP requires that any “Major” Fund be presented in its own column based on certain criteria.
What is normally seen is a Major Capital Project such as a new high school or Community
Preservation.
All other funds are accumulated in the single column for Nonmajor funds. Unless you prepare
a CAFR this detail will not be found.
These funds are not budgeted and most times are not part of a Finance Committee review.
You may want to request the detail to see if any other available funds are available.
posted by Jeff Bennett
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