Templeton Town Counsel:
Sherborn Selectman Paul DeRensis was reappointed by Governor Charlie Baker
on Feb. 10 to a ninth term as a member of the Massachusetts Local Government
Advisory Commission. Former Governor Deval Patrick had initially appointed
DeRensis to this commission.
Baker first reappointed DeRensis in February 2015; this is the third
reappointment by Baker. Lt. Governor Karyn Polito administered the oath of
office on Feb. 14.
State law provides that responsibilities of commissioners include the following:
“1. to review and analyze proposed legislation and regulatory changes from the
point of view of municipal government and present such point of view to the
governor, his executive secretaries and to the general court;
2. to act as an independent advocate for the interests of local governments in
their relations with state and federal governments;
3. to advise officials of the commonwealth and the federal government on the
needs of local governments, assist in mobilizing state and federal resources to
deal with problems of local governments, provide coordinating support to
Sherborn’s Paul DeRensis reappointed to state
commission
agencies responsible for administering federal, state and local programs, and
promote legislative and administrative proposals reflecting the interests of local
governments;
4. to establish, from time to time, study committees or task forces to consider
issues pertaining to local government in detail and to present the results of those
considerations to the governor, the secretaries of his executive offices and to the
general court;
5. to meet monthly with the governor and at such other times...;
6. to meet quarterly with the legislative leadership, and at such other times as
may be necessary.
Templeton is lucky to have Mr. DeRensis as it's main legal counsel.
posted by Jeff Bennett
Sunday, May 28, 2017
Saturday, May 27, 2017
from Division of Local Services - who can be contacted for questions.
REVENUE AND APPROPRIATION DEFICITS
March 2017
Field visits with municipal finance officials have revealed certain misconceptions about what constitutes a “budget deficit.” The term is often used when projected revenues are lower than anticipated expenditures at the start of the budget process. However, because municipal budgets must be in balance, policymakers must close this gap before the start of the fiscal year. After the tax rate is set, appropriation and revenue deficits can arise during the course of the fiscal year and must be addressed before the following year’s tax rate can be approved. An appropriation deficit is an excess of expenditures at any point in a fiscal year over the legally authorized amount approved by the local appropriating authority for the same period. With four spending exceptions (court judgments, snow and ice costs, overlay, and emergencies threatening public health or safety), a city or town department may not overexpend its appropriation under M.G.L. c. 44, §31. Unless corrected prior to year-end through transfer or appropriation of unexpended reserves, all appropriation deficits must be raised on the tax rate recapitulation sheet (tax recap) for the ensuing fiscal year. Illegal appropriation deficits also negatively hit free cash, which creates a double penalty. A revenue deficit is the amount by which actual revenues at year-end fall short of projected revenues and are thereby insufficient to cover actual expenditures (not including appropriation deficits). A revenue deficit must also be raised on the tax recap for the following year, but unlike an appropriation deficit, it does not affect a community’s free cash calculation. It is useful to remember that in determining revenue deficits, municipalities are allowed to regard the current year’s net real and personal property taxes as 100 percent collectible. This effectively narrows the source of a revenue deficit to state aid or local receipt categories. With either deficit type, town accountants and city auditors should monitor expenditure and revenue trends during the fiscal year to identify potential problems. Appropriation deficits can often be corrected through transfer or appropriation. An identified revenue deficit usually requires a corresponding midyear spending reduction. However, it is not possible to fully quantify a revenue deficit until after the fiscal year closes and a balance sheet is prepared. In addition to monitoring revenues and expenditures throughout the year, these are other methods to avoid or remedy deficits: Under M.G.L. c. 41, §56, the accountant or auditor should disallow any departmental payment request when the appropriation balance in the line item to be charged is insufficient to cover the invoice amount. The timely exercise of this authority when processing warrants will prevent appropriation deficits.
A town meeting or city council may approve midyear line-item transfers or appropriate from reserve balances. In either case, the executive branch must originate the request.
Under M.G.L. c. 44, §33B, a board of selectmen (with the finance committee’s agreement) or a city council may approve the transfer of appropriations between line items during the last two months of the fiscal year or the first 15 days of the ensuing fiscal year, provided that the appropriations are not taken from the school department or municipal light plant.
Under M.G.L. c. 40, §5A and M.G.L. c. 40, §6, a city council or town finance committee may vote to transfer from the reserve fund an amount to fund extraordinary or unforeseen expenses.
posted by Jeff Bennett
REVENUE AND APPROPRIATION DEFICITS
March 2017
Field visits with municipal finance officials have revealed certain misconceptions about what constitutes a “budget deficit.” The term is often used when projected revenues are lower than anticipated expenditures at the start of the budget process. However, because municipal budgets must be in balance, policymakers must close this gap before the start of the fiscal year. After the tax rate is set, appropriation and revenue deficits can arise during the course of the fiscal year and must be addressed before the following year’s tax rate can be approved. An appropriation deficit is an excess of expenditures at any point in a fiscal year over the legally authorized amount approved by the local appropriating authority for the same period. With four spending exceptions (court judgments, snow and ice costs, overlay, and emergencies threatening public health or safety), a city or town department may not overexpend its appropriation under M.G.L. c. 44, §31. Unless corrected prior to year-end through transfer or appropriation of unexpended reserves, all appropriation deficits must be raised on the tax rate recapitulation sheet (tax recap) for the ensuing fiscal year. Illegal appropriation deficits also negatively hit free cash, which creates a double penalty. A revenue deficit is the amount by which actual revenues at year-end fall short of projected revenues and are thereby insufficient to cover actual expenditures (not including appropriation deficits). A revenue deficit must also be raised on the tax recap for the following year, but unlike an appropriation deficit, it does not affect a community’s free cash calculation. It is useful to remember that in determining revenue deficits, municipalities are allowed to regard the current year’s net real and personal property taxes as 100 percent collectible. This effectively narrows the source of a revenue deficit to state aid or local receipt categories. With either deficit type, town accountants and city auditors should monitor expenditure and revenue trends during the fiscal year to identify potential problems. Appropriation deficits can often be corrected through transfer or appropriation. An identified revenue deficit usually requires a corresponding midyear spending reduction. However, it is not possible to fully quantify a revenue deficit until after the fiscal year closes and a balance sheet is prepared. In addition to monitoring revenues and expenditures throughout the year, these are other methods to avoid or remedy deficits: Under M.G.L. c. 41, §56, the accountant or auditor should disallow any departmental payment request when the appropriation balance in the line item to be charged is insufficient to cover the invoice amount. The timely exercise of this authority when processing warrants will prevent appropriation deficits.
A town meeting or city council may approve midyear line-item transfers or appropriate from reserve balances. In either case, the executive branch must originate the request.
Under M.G.L. c. 44, §33B, a board of selectmen (with the finance committee’s agreement) or a city council may approve the transfer of appropriations between line items during the last two months of the fiscal year or the first 15 days of the ensuing fiscal year, provided that the appropriations are not taken from the school department or municipal light plant.
Under M.G.L. c. 40, §5A and M.G.L. c. 40, §6, a city council or town finance committee may vote to transfer from the reserve fund an amount to fund extraordinary or unforeseen expenses.
posted by Jeff Bennett
Why is a post about a Templeton Town accountant possibly applying for a part time accounting position in another municipality being talked about or brought up?
Since there is a thing here in Massachusetts called the Uniform Massachusetts Accounting System
Chapter 1 - Introduction
Scope and Purpose:
This Manual comprises the Uniform Massachusetts Accounting System (UMAS). The scope of the Manual is the operation of an accounting system for a local governmental entity in Massachusetts. Its purpose is to provide a reference for the City Auditor, Town Accountant or official with similar responsibilities in accounting for financial transactions and reporting results of municipal financial operations. The Manual is based on Generally Accepted Accounting Principles (GAAP), but is written to meet the particular needs of Massachusetts local accounting officials.
Massachusetts General Laws (G.L.) c. 44, § 38 requires the Director of Accounts in the Department of Revenue to prescribe uniform accounting systems for local governmental entities. Accounting for municipally owned electric light plants is prescribed in G.L. c. 164 and is regulated by the Department of Public Utilities; accounting for retirement systems is prescribed in G.L. c. 32 and is regulated by the Public Employment Retirement Administration Commission. This Manual deals solely with accounting policies. Municipal financial issues such as budgeting or audit procurement are not included. Other publications of the Division of Local Services (DLS) address such subjects.
So it seems like if the Templeton Town Accountant takes a part time position in another community (and that is fine as long as Templeton does not take a back seat), it does not appear that the accountant would pick up any pointers or other things because the LAW cited above states there is one standard for ALL cities and towns.
Now, perhaps not known to some current selectmen and others, once upon a time there was a full time Health agent working in Templeton with a very generous compensation package who also worked part time for a few other communities. One of those communities was the Town of New Salem. On the New Salem town web site was a section involving that town's health agent and on that page, the health agent listed "my office number is 978-939 etc., which happened to be the telephone number for the Templeton Board of Health. It seemed to me the Templeton health agent could be conducting other town's business on Templeton dime. I found that website along with other communities where that individual was listed as part time health agent and there did not seem to be enough hours in the week to do all the work the individual was doing while also spending 40 hurs per week in Templeton. Somewhere I have a print out of the New Salem website. There was also a building inspector doing essentially the same thing. potted in another town during hours he was supposed to be in Templeton. That is why, in my opinion, the Templeton Town accountant possible part time position was worth a mention. Also of note, not to long ago at a selectmen meeting, there was mention of Phillipston was looking for a Town accountant and it could be possible for the two towns to share an accountant. A few weeks later, it was stated at another selectmen meeting that Phillipston was not interested. So, just in case any residents happen to see or hear of the Templeton accountant working for Phillipston, we try to avoid any assumption that "hey, I guess the two towns are sharing a town accountant and maybe we are saving some money." .
posted by Jeff Bennett
Since there is a thing here in Massachusetts called the Uniform Massachusetts Accounting System
Chapter 1 - Introduction
Scope and Purpose:
This Manual comprises the Uniform Massachusetts Accounting System (UMAS). The scope of the Manual is the operation of an accounting system for a local governmental entity in Massachusetts. Its purpose is to provide a reference for the City Auditor, Town Accountant or official with similar responsibilities in accounting for financial transactions and reporting results of municipal financial operations. The Manual is based on Generally Accepted Accounting Principles (GAAP), but is written to meet the particular needs of Massachusetts local accounting officials.
Massachusetts General Laws (G.L.) c. 44, § 38 requires the Director of Accounts in the Department of Revenue to prescribe uniform accounting systems for local governmental entities. Accounting for municipally owned electric light plants is prescribed in G.L. c. 164 and is regulated by the Department of Public Utilities; accounting for retirement systems is prescribed in G.L. c. 32 and is regulated by the Public Employment Retirement Administration Commission. This Manual deals solely with accounting policies. Municipal financial issues such as budgeting or audit procurement are not included. Other publications of the Division of Local Services (DLS) address such subjects.
So it seems like if the Templeton Town Accountant takes a part time position in another community (and that is fine as long as Templeton does not take a back seat), it does not appear that the accountant would pick up any pointers or other things because the LAW cited above states there is one standard for ALL cities and towns.
Now, perhaps not known to some current selectmen and others, once upon a time there was a full time Health agent working in Templeton with a very generous compensation package who also worked part time for a few other communities. One of those communities was the Town of New Salem. On the New Salem town web site was a section involving that town's health agent and on that page, the health agent listed "my office number is 978-939 etc., which happened to be the telephone number for the Templeton Board of Health. It seemed to me the Templeton health agent could be conducting other town's business on Templeton dime. I found that website along with other communities where that individual was listed as part time health agent and there did not seem to be enough hours in the week to do all the work the individual was doing while also spending 40 hurs per week in Templeton. Somewhere I have a print out of the New Salem website. There was also a building inspector doing essentially the same thing. potted in another town during hours he was supposed to be in Templeton. That is why, in my opinion, the Templeton Town accountant possible part time position was worth a mention. Also of note, not to long ago at a selectmen meeting, there was mention of Phillipston was looking for a Town accountant and it could be possible for the two towns to share an accountant. A few weeks later, it was stated at another selectmen meeting that Phillipston was not interested. So, just in case any residents happen to see or hear of the Templeton accountant working for Phillipston, we try to avoid any assumption that "hey, I guess the two towns are sharing a town accountant and maybe we are saving some money." .
posted by Jeff Bennett
Wednesday, May 24, 2017
Tuesday, May 23, 2017
from Massachusetts General Law, chapter 41;
from the Ledger History - expenditure Ledger - allocated summary
Section 61: Annual report
Section 61. The town accountant shall make an annual report, to be published as a town document, giving a statement of all receipts and expenditures of the town for the past financial year, including those of funds managed by trustees or commissioners for the town and showing also the amount of each specific appropriation, the expenditures therefrom, and the purpose for which money has been spent; and said statement shall be arranged in accordance with the classifications prescribed by the director of accounts. Such report shall contain a statement of any change in the amount of the town debt during the year and a list of indebtedness incurred and unpaid at the end of the financial year.
Some accounts/funds on this budget versus actual (so-called) show a % variation of more than 100%.
Solid waste disposal expenses: 113.24% var. shown as -$842.01
Recycling revolving expenses: 218.11% var. shown as - $983.67
COA revolving MART expenses: 148.68% var. shown as -$25,649.27
Elementary School: 1,308.86% var. shown as -$1,287,015.44
Snow & Ice shows a deficit and that is allowed by law.
I can already hear the grumblings from Town Hall but this information is on a report from the Town Accountant and if those numbers are not negative or in deficit then perhaps it should be noted on the document as in an explanation. This was also on the agenda and discussed at the last meeting of the Advisory (finance) Committee.
Solid waste disposal expenses: 113.24% var. shown as -$842.01
Recycling revolving expenses: 218.11% var. shown as - $983.67
COA revolving MART expenses: 148.68% var. shown as -$25,649.27
Elementary School: 1,308.86% var. shown as -$1,287,015.44
Snow & Ice shows a deficit and that is allowed by law.
I can already hear the grumblings from Town Hall but this information is on a report from the Town Accountant and if those numbers are not negative or in deficit then perhaps it should be noted on the document as in an explanation. This was also on the agenda and discussed at the last meeting of the Advisory (finance) Committee.
posted by Jeff Bennett
from Massachusetts General Laws, chapter 41;
posted by Jeff Bennett
Section 52: Approval of bills
[ Text of section effective until November 7, 2016. For text effective November 7, 2016, see below.]
Section 52. All accounts rendered to or kept in the departments of any city shall be subject to the inspection of the city auditor or officer having similar duties, and in towns they shall be subject to the inspection of the selectmen. The auditor or officer having similar duties, or the selectmen, may require any person presenting for settlement an account or claim against the city or town to make oath before him or them, in such form as he or they may prescribe, as to the accuracy of such account or claim. The wilful making of a false oath shall be punishable as perjury. The auditor or officer having similar duties in cities, and the selectmen in towns, shall approve the payment of all bills or pay rolls of all departments before they are paid by the treasurer, and may disallow and refuse to approve for payment, in whole or in part, any claim as fraudulent, unlawful or excessive; and in that case the auditor or officer having similar duties, or the selectmen, shall file with the city or town treasurer a written statement of the reasons for the refusal; and the treasurer shall not pay any claim or bill so disallowed. This section shall not abridge the powers conferred on town accountants by sections fifty-five to sixty-one, inclusive.
Chapter 41: Section 52. Approval of bills
[ Text of section as amended by 2016, 218, Sec. 57 effective November 7, 2016. For text effective until November 7, 2016, see above.]
Section 52. All accounts rendered to or kept in the departments of any city shall be subject to the inspection of the city auditor or officer having similar duties, and in towns they shall be subject to the inspection of the selectmen. The auditor or officer having similar duties, or the selectmen, may require any person presenting for settlement an account or claim against the city or town to make oath before him or them, in such form as he or they may prescribe, as to the accuracy of such account or claim. The willful making of a false oath shall be punishable as perjury. The auditor or officer having similar duties in cities, and the selectmen in towns, shall approve the payment of all bills or pay rolls of all departments before they are paid by the treasurer, and may disallow and refuse to approve for payment, in whole or in part, any claim as fraudulent, unlawful or excessive; and in that case the auditor or officer having similar duties, or the selectmen, shall file with the city or town treasurer a written statement of the reasons for the refusal; and the treasurer shall not pay any claim or bill so disallowed. The board of selectmen may designate any 1 of its members for the purpose of approving bills or payrolls under this section; provided, however, that the member shall make available to the board, at the first meeting following such action, a record of such actions. This provision shall not limit the responsibility of each member of the board of selectmen in the event of a noncompliance with this section. This section shall not abridge the powers conferred on town accountants by sections fifty-five to sixty-one, inclusive.
Section 58: Duties; notice of condition of appropriations; record of appropriations
Section 58. Whenever any appropriation shall have been expended or whenever, in the judgment of the town accountant, it appears that the liabilities incurred against any appropriation may be in excess of the unexpended balance thereof, he shall immediately notify the selectmen and the board, committee, head of department or officer authorized to make expenditures therefrom, and no claim against such appropriation shall be allowed nor any further liability incurred until the town makes provision for its payment. The town accountant shall, at regular intervals and as often at least as once each month, send to the selectmen and to each board, committee, head of department or officer having the disbursement of an appropriation a statement of the amount of orders approved and warrants drawn on behalf of said board, department or officer during the preceding month, and a statement of the balance of such appropriation remaining subject to draft. Each head of a department, board or committee authorized to expend money shall furnish the town accountant, at the close of the financial year, a list of bills remaining unpaid, showing to whom and for what due, and their amounts; and the town accountant shall incorporate the same in his annual report covering the financial transactions of the town, as provided by section sixty-one.
posted by Jeff Bennett
from the Templeton Town Moderator:
Darlene Buelow was appointed and advised to see Carol to be sworn in. I will also appoint Robert May as they were the only people that applied for the position. If you would like to let the both know to see Carol to be sworn in that would be great.
Thanks
Derek
Sent from my iPhone
> On May 21, 2017, at 19:05, Templeton, MA Advisory Board <templetonadvisoryboard@gmail.com> wrote:
>
> Derek
>
> At the Advisory Committee's last meeting on May 17th Gordon Moore resigned effective that day. As per the By-law he also informed the Town Clerk (Carol Harris).. This now leaves 2 vacancies on the committee. that need to be filled. The question I have is when will you be filling them. The committee's next scheduled meeting is June 7th. Please let us know when these positions are filled and whom you have appointed and their terms so we can welcome them to the committee.
>
> Wilfred Spring
> Advisory Committee Chairman
Thanks
Derek
Sent from my iPhone
> On May 21, 2017, at 19:05, Templeton, MA Advisory Board <templetonadvisoryboard@gmail.com> wrote:
>
> Derek
>
> At the Advisory Committee's last meeting on May 17th Gordon Moore resigned effective that day. As per the By-law he also informed the Town Clerk (Carol Harris).. This now leaves 2 vacancies on the committee. that need to be filled. The question I have is when will you be filling them. The committee's next scheduled meeting is June 7th. Please let us know when these positions are filled and whom you have appointed and their terms so we can welcome them to the committee.
>
> Wilfred Spring
> Advisory Committee Chairman
posted by Jeff Bennett
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