Email to selectmen of Templeton - no response as of yet.

Reading the FY 2018 audit again, I find what I consider contradicting statements:

In planning and performing our audit of the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Templeton, Massachusetts, (the “Town”) as of and for the year ended June 30, 2018, in accordance with auditing standards generally accepted in the United States of America, we considered the Town’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. 

4. Sewer User Charges (repeated from the prior year) The Sewer Department continues to handle all aspects of the user charges associated with the activity. Therefore, the internal controls surrounding this activity are not as complete as they should be. We continue to suggest that the Collector’s office be given the responsibility of collecting the user charges. This will provide better segregation and internal controls over the activity and provide a more efficient reconciliation process. 

"as they should be" and "we continue to suggest" - Those two statements are opinion based, no mention of any law being broken, no mention of any by-law being violated (I am still awaiting the explanation  of the chairman's statement that sewer dept. is violating town by-law (s).

Bottom line, it is all about the money; Selectmen Brooks asking if sewer enterprise fund can be billed and if so, will this help our general fund? (see selectmen meeting of April2, 2018) Reducing hours of benefited sewer employees will save health care costs. If you wish to save money, move collections to town hall @ collectors office and do not charge the enterprise fund to do this, I mean, people, including sewer rate payers, already pay taxes to operate the treasurer/collector office, including any assistants/part-time personnel.

Note: By not providing a return envelope, any resident now has to buy an envelope which in reality, amounts to another fee. Yes, that point might be considered petty, but as I stated, I am all in. How much tax money is going to be spent conferring with town counsel as you try to enforce an opinion from someone else; auditor and DOR?

from 2016; This message was at one time posted on Templeton Town face book page.

Message from Town Administrator Bob Markel

The Department of Revenue has always discouraged the use of free cash to balance the budget. Bond rating agencies do the same, and the low bond rating for the Town reflects, in part, the lavish use of free cash to fund the operating budget. However, this is not illegal; it is simply unsound financial policy.

The amount of free cash available changes yearly, and it is not predictable. Free cash is considered one-time revenue, and the Department of Revenues recommends that it used to augment the Stabilization Fund (reserves) or for one-time purchases like capital items.

Audit firms do not do a thorough job of auditing the books (unfortunately). They come and test various areas of the town’s finances to see if there are problems, but some problems are not caught and can persist for years. They tell you up front that they cannot do a thorough audit for the relatively modest amount they charge. The DOR representative at today’s meeting called the standard municipal audit a “hit and run” audit.Still, some firms are more reputable and more competent than others. I cannot name names in this message, but there are several firms that I would never hire.

Recommendation: The Selectboard should create an Audit Committee of knowledgeable citizens who will have two responsibilities: 1) Bid the audit contract every three years, and hire an independent auditor; and 2) Receive the annual audit and do a public review of the findings and the management letter. Municipal auditors are typically hired by the Town Administrator, Town Accountant or Finance Director. This is an inherent conflict of interest since town officials who do the hiring are the ones whose work is being audited. Hiring and receiving the audit should be an arm’s length transaction from the Town’s financial team.

The Department of Revenue oversees 351 cities and towns in the Commonwealth. They accept data provided by the Town Accountant, the Treasurer/Collector and the Assessors. They often question the data, but they are not always able to verify if data submitted on the Tax Recap or Schedule A are accurate. The DOR does not have access to the town’s accounting system. For example, the DOR was in Templeton today to question whether the Town has properly reported debt obligations on the DE-1 section of Schedule A. Some debt is paid from general revenue within the town budget and some debt is paid through debt exclusion. There is a correct way to report these two types of debt on Schedule A. The DOR representatives checked to see if the Town reported the data correctly, but they are limited in their ability to verify the accuracy of the data.

The long term solution to Templeton’s financial problems is to hire a professional Town Administrator who will put in place a competent financial management team – Accountant, Treasurer, Collector and Assessors. The Selectmen and Advisory Board have the responsibly to oversee the T.A. and the financial team on their management of the Town’s finances. To complement the BoS and Advisory Board, the Audit Committee should retain a reputable accounting firm to conduct an annual audit with the results made public.

Bob Markel
Interim Town Administrator

Templeton Selectmen are always repeating we have a great financial Team in place.

Are the selectmen getting and hiring experienced staff? If not, are they providing current and necessary training so Town funds (your money) is well looked after and ensuring it is (money) working for you - invested and making money, ie: interest, results on investment!

The most current financial audit says no:

1. Maximizing Investment Returns 
Over the past ten years, the interest earned on bank deposits have not kept pace with inflation. Many bank depository accounts currently return less than 1%. However, there are a growing number of banks and financial institutions like the Massachusetts Municipal Depository Trust, or MMDT, that are financially stable and offer very liquid short-term investments with annual interest rates greater than 2%. In fiscal year 2018, the Town’s governmental funds reported interest income of about $30,000 despite total cash holdings of over $9 million. A review of the Town’s bank deposits at June 30, 2018 reveals that virtually all of its deposits are in accounts bearing interest at 0.0% to 0.25%. We recommend that the Town Treasurer evaluate the Town’s depository balances and accounts and evaluate the possible benefits of reallocating portions of the Town’s excess funds to stable financial institutions that offer very liquid safe short-term investments. In doing so, it can turn its cash into a revenue generating asset.

3. Closing Checklists 
Closing checklists are employed by accounting departments to better ensure that all routine and non-routine accounting transactions and reconciliations are performed and the final outputs (i.e., the Town’s balance sheet and Schedule A) are reviewed for accuracy and completeness. The use of closing checklists is commonplace in private industry but is seldom used in the public sector. The Town had great difficulty getting its free cash approved; in the end it was approved at the expected amount, but the Department of Revenue process was not used properly. We recommend that the Town Accountant, Treasurer/Collector develop a closing checklist to monitor and track the annual accounting close in order for the process to be more efficient in the future.

9. Treasurer/Collector Office (repeated from prior year)

In our letter to management dated March 23, 2017 we identified 17 critical areas in the Treasurer/Collectors Office that needed to be addressed. Many of those have been addressed through fiscal year 2018, however some remain and should be addressed in the current fiscal year. Those are highlighted as follows:
• While efforts are made to collect cash from department heads weekly, there is no formal policy regarding cash held by departments outside the Treasurer’s Office. The Treasurer was unaware that all Town cash is under the Treasurer’s control, and the Treasurer has the duty to force effective internal control policies on all departments who handle cash.
• Presently, the Collector does not use a lock box to collect taxes. A lock box is essentially a third-party collector of taxes. Taxpayers mail their payments to a Post Office box, and the third-party collector deposits the funds for the Town and posts activity for all those who have paid. Daily, an electronic file is then sent to the Town where payments are uploaded automatically to the Town’s system.
• Cash forecasts are currently not prepared as part of a monthly routine. This is a critical process for Towns that are cash stressed; we suggest such a process is implemented immediately.
• In 2011 the Department of Revenue began to require towns to process mark to market adjustments prior to submitting their balance sheets for free cash. This is very similar to the accounting requirements under GASB 31. The Town currently nor ever has processed mark to market adjustments for unrealized gains and losses. While this does not impact free cash and only impacts the Trust Funds, we suggest the Town adopt a process to complete these transactions at year-end.

Oh, those days of yesteryear where wood chips would be locally sourced for $28.00 per ton.

Narragansett Regional Middle and High Schools (NRSD) share a building and central office in Baldwinville. In 2015, the district installed a Messersmith wood chip boiler to heat the 20,000- square foot building. The wood chip boiler runs on chips supplied by Anderson Timber in Westminster. The system uses about 1,000 tons of local wood per year at $50/ton. Before converting to biomass, the school heated with an oil burner that used up to 800 gallons each day. As wood chips are the cheapest wood fuel option, NRSD now saves $250,000 on fuel each year. The back-up propane system is rarely used. Wood chips are delivered via truck to the 100-ton storage bunker, accessible via two garage doors. Wood chips move from the storage bin into the boiler via an auger system that meters the rate of chip delivery so that the boiler maintains optimum combustion efficiency. An electrostatic precipitator is connected to the system to reduce emissions. The ESP uses electrical charges to separate particulates from harmless outgoing emissions such as water vapor. The other by-product of combustion is ash, which is emptied daily and can be mixed with soil and used for landscaping.

The following is a link to information concerning Town Meetings.

Please note that Templeton has an open Town Meeting, which means all registered voters of Templeton can attend, speak and vote on all matters before the meeting. There are no quorum requirements.

https://www.sec.state.ma.us/cis/cistwn/twnidx.htm

Templeton is on a roll!

What happened to we need to increase pay to attract good people who will stick around?
What could be the cause of the employees leaving?

EMPLOYMENT OPPORTUNITY
 TOWN OF TEMPLETON, MA
 DEPARTMENT OF PUBLIC WORKS

Mechanic: Full-time position maintaining all classes of equipment ranging from passenger vehicles (police cruisers) to 10 wheel dump trucks, loaders, road sweepers, backhoes, brush chippers and the like. Requires High School or GED diploma, valid Class B driver’s license with air brake and hoisting licenses of 1C and 2A and a minimum of three years of experience. Successful applicant will have interpersonal skills, ability to work under pressure to return equipment to the road, and able to work independently using sound judgment under limited supervision.

Foreman – Buildings & Grounds: Full-time position supervising small crew of full and part time laborer’s maintaining the Town’s cemeteries, parks, and buildings; maintains records kept on all lots, locates graves for families and vendors, performs related burial tasks, snow removal, and minor building maintenance, operates a variety of equipment, including backhoe, one ton truck w/plow and tractor and performs minor maintenance on the same and hand help equipment. Requires High School or GED diploma, valid Class D or higher driver’s license with hydraulics endorsement 2B (or ability to earn the same within six months), and a minimum of three years of experience with at least one year in a supervisory role. Successful candidate will have interpersonal skills to deal with people at traumatic times in their lives, ability to work well in a team while also able to work independently using sound judgment under limited supervision.

Driver/Operator/Laborer: Full-Time position performing maintenance duties for town streets and highways, sidewalks, drainage systems of culverts, catch basins and manholes, street sweeping, patching potholes, tree maintenance, snow-plowing, performing minor equipment repairs and assisting others in this and the Buildings & Grounds Department. Requires High School or GED diploma, valid Class B driver’s license with air brake and hoisting licenses of 2B, 4G, and 4E (or ability to earn the same within 6 months) and three years of experience. Successful applicant will have the ability to work well in a team while also able to work independently using sound judgment under limited supervision. Applications from those with only CDL learners permit will also receive consideration.

Seasonal Laborers: Thirty (30) or ten (10) week positions of 40 hr/wk (April 1 or July 1 start) performing grounds maintenance of mowing, edging, weeding, maintaining mulch beds, loading and unloading equipment and supplies, disposing of refuse, assisting in minor roadway maintenance, and cleaning interior and exterior of facilities. Requires High School or GED diploma, valid Class D or higher driver’s license, and be 18 years of age. Successful candidates must be able to work under limited supervision, have tact when in contact with the public, and a working knowledge of the care and use of hand tools and small motorized equipment.

TO: Board of Selectmen
FROM: Carter Terenzini, Town Administrator
RE: Administrator’s Weekly Report
DATE: February 7, 2019
CC: All Departments


5g. We have $16.6M of BANs due at the end of this month. The intent is to pay about $380k in cash from the budget, roll $4M as BANs until 02/20, and then issue General Obligation Bonds of  $12.230+/- M. I say plus or minus because we are required to resize the final GOB by the prorata share of the net premium being earned on the police portion of the bond (We anticipate the final PD portion of the bond to be $2,440,000). The interest rate on the GOB is less than 3.5% while the net interest rate on the BAN is just under 2.09. In November you will need to roll those BANs until 02/20 so that you can then issue a GOB at the appropriate structure to account for the length of time it may take the MSBA to settle your account. While you remain well under budget this can always change so… You may find you need a modest amount of a new BAN may be needed toward the end of the project to cover any changes in this status or the MSBA settlement impact our current cash flows.