October 30, 2016

To:  John Caplis, Chairman
Board of Selectmen
Templeton Town Hall
160 Patriots Road
East Templeton, MA 01438

SUBJECT:   REQUEST TO RETURN TO THE APPROPRIATE
  TOWN OF TEMPLETON ANNUAL REPORT FORMAT


This letter is written as a request to return financial reporting in our town’s Annual Reports (AR) to the way it was in the past and to the way it is required per our by-laws.

ISSUE

The Town of Templeton is not reporting financial data in our Annual Reports as required by law.

FACTS

The last AR to publish an Accountant’s Report was for FY2011.
The last AR to publish a Treasurer’s Report, containing Trust Fund data, was for FY2012.
The AR’s published for FY13 and FY15 did not have a Treasurer’s Report. 

LAW

Templeton By-Law 
Article VIII – Records and Reports 
Section 1, in part:  
“All officers, … shall cause records of their doings and accounts to be kept in suitable books….”  

Templeton By-Law 
Article VIII – Records and Reports 
Section 2, in part: 

“All officers … having charge of the expenditure of town money shall annually report thereon, in
writing in such manner as to give the citizens a fair and full understanding of the objects and methods of such expenditures, referring, however, to the report of the Town Accountant for statements in detail of receipts and payments….”

                                                                                                                                  page 1 of 106

October 30, 2016                        page 2 of 106
Requested Change to Annual Report



LAW                 (continued)

Templeton By-Law 
Article VIII – Records and Reports 
Section 3, in part:  
“It shall be the duty of the Selectmen to publish the Annual Report…. “

Templeton By-Law 
Article VIII – Records and Reports 
Section 4, in part:  
 “The Annual Town Report shall contain … 
· a detailed report of all moneys received into and paid out of the town treasury …
· showing separately payments made from the proceeds of 
loans as capital outlays for permanent improvements
· the report of the collector of taxes
of receipts
payments and 
abatements 
· statements of all funds belonging to the town or held for the benefit of its inhabitants; 
· statement of the liabilities of the town on 
bonds
notes
certificates of indebtedness or otherwise 
· statement of indebtedness authorized but not incurred
· statement of transfers made to or from any appropriation
· abstracts of the records of the meetings of the town
· complete list of town officers and appointees … and 
· such other matters as the said report is required by law to contain ….”



CONCLUSION

We understand that Templeton has not audited their books since FY2012.  However, this does not excuse a lack of reporting existing and known financial data.

Prior to FY2012 the Town of Templeton ARs contained financial information as required.  The accountant’s report always had a Statement of Revenue and Expenditures showing actual figures compared to the budgeted numbers, with variances.  It also had a Combined Balance Sheet with Assets and Liabilities for government funds, fiduciary funds, long term debt, and proprietary sewer enterprise figures.  In addition to this, the Treasurer’s Report showed the town’s payroll expense for every employee and all the figures for the many trust funds maintained by the town.


October 30, 2016                        page 3 of 106
Requested Change to Annual Report



CONCLUSION           (continued)

Providing this information gave the citizens of Templeton a fair and full understanding of the town’s finances and reassured us that our moneys were being handled fairly, accurately, and as voted at Annual Town Meetings.

Realizing that the absence of an annual audit of our books has, in part, resulted in the loss of our bond rating and therefore leaves future interest rate expenses in question and delays state financial support; there should be no reason why the town’s Annual Report could not include actual income and expenses incurred in the previous fiscal year (annual cash flow), as well as salary, capital project, long term debt, enterprise, and trust fund figures.

Reporting this information in our Annual Reports, as required, could help restore a level of confidence in our town government with the citizens of Templeton.

ACTION

Please provide an explanation for the town’s lack of required Annual Report financial disclosure for the past five years.   

Please understand that comments such as:
 “We are waiting for financial audit results” or
 “We are still getting our financial house in order.”
do not explain why known financial data has not been published as required by law and the town has had five (5) years to correct these issues. 


Respectfully Submitted,


___________________________________________
Bernard J. Heaney

According to Mr. Heaney, he never heard back, not a peep, just the sound of silence.

Mr. Heaney put together 106 pages of information for a simple request: put the required financial reports in the annual town report. I believe he is still waiting for the promised addendum for July 1, 2017 on Town finance as well.

I thank Mr. Heaney for his effort as the Templeton Advisory Committee has been bringing this issue up for some time and it is safe to say that the committee is as frustrated as Templeton resident Bernard Heaney is.