Tuesday, April 4, 2017

It has been stated on at least one occasion that the audits have been completed or at least the "grunt work" and sometime this month there should be a public meeting for the presentation of the management letter and accompanying documents.

At the conclusion of each audit, a management letter may be issued by the independent auditor.

Management letter is not required if there are no findings that are considered significant.

The management letter does not provide an opinion but instead deals with the auditors evaluation of the Town's internal control over financial reporting.

So, at last night's meeting/workshop (so called) the Town accountant stated that there was still some work to be done with regards to accounts receivables and other items for some years. My thought is how can a good audit be completed if not all the records are up to date, complete and correct?

Perhaps a question for the auditors.

Also brought out was that there are shortfalls in FY 2013, 2014 and 2015. and the shortfall for 2013 is not in the million dollar range nor the 800 thousand dollar range, but we will see ( I hope) and somewhere in there, there is surplus of funds, how much is it, do not know yet.

Another item asked about was the collection rate, as in the percentage of taxes actually collected versus what could be collected. Town Administrator did not wish to say, so I surmise it is less than what is stated in the revenue section for the FY2018 revenue and expense plan.

That number would be very helpful to all, as last year a value of $80 thousand dollars was used in the revenue section available for spending and yet it turned out to be $69 thousand dollars. Same with motor vehicle excise tax, Town meeting time, the figure was one million, one hundred ten thousand dollars available to cover expenses, Yet in the report to the DOR (tax recap sheet) a figure of one million was used. Which is why the Advisory Committee has concerns about the revenue numbers being used. It does not mean they are right or wrong, it just means the committee feels a more conservative approach should be used, a difference of opinion and hopefully, that will be reported to Town meeting so the people can decide.

You can find "examining your audited financial statements on the Massachusetts Municipal Association web page in the open section. It was put together and presented by James E. Powers, CPA.

posted by Jeff Bennett




1 comment:

  1. The management letter is only good if the BOS listens to what it has to say, and uses this information to improve things in this Town going forward. It seems to me that these people are afraid to think for themselves, instead they rely on Carter to think for them. Where is Carter going to be when their budget fails once again because they failed to reduce the revenue figures ? Nowhere to be found more than likely ! So this is on you, the selectmen. Any idea, and yes there are some good ones, does not mean that the town has the means to carry them forward. Like I have said, first question that should come into their mind is "where is the money coming from" ?? Speaking of money, I saw that Hubbardston has $638,000. in free cash. That is what our town should have, but with poor management we have 0, and will continue to have zilch as long as our BOS continues to use inflated revenue. That is a fact, like it or not ! I do believe people in this Town would rather have a little less in services and something in savings when given a choice. No one said the selectmen were supposed to be Santa Clause, but were elected to run the town in a responsible manner. Bev.

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