How transparent is Templeton Town Governance?   

From: jeff bennett <j_bennett506@hotmail.com>
Sent: Wednesday, February 20, 2019 4:22 PM
To: Holly Young; Terenzini, Carter; Caplis, John
Subject: public records request

 

Wednesday, February 20, 2019

Holly Young
Town of Templeton
Town Hall, 160 Patriots Road
Templeton, MA 01438

Re: Massachusetts Public Records Request

Holly Young:

This is a request under the Massachusetts Public Records Law (M. G. L. Chapter 66, Section 10). I am requesting that I be provided a copy of the following records:

A report of the Veterans Advisory Board, per Templeton Town general by-law - article LVI: Veterans Advisory Board. According to the by-law, a report from this board is to be provided to the Board of Selectmen in December of each year.

A copy of a contract between Town of Templeton and Narragansett Regional School District involving a wind turbine. Per Massachusetts General Law, chapter 164, section 56C, Every  municipal light commission or manager thereof, who makes or executes a contract on behalf of a municipal lighting plant, where the amount involved is five thousand dollars or more, shall furnish said contract or a copy thereof to the city or town auditor within one week after its execution.

I would request, if possible, that these records be provided in electronic form.

I recognize that you may charge reasonable costs for copies, as well as for personnel time needed to comply with this request.

The Public Records Law requires you to provide me with a written response within 10 business days. If you cannot comply with my request, you are statutorily required to provide an explanation in writing.

Sincerely,

Jeffrey Bennett
77 Partridgeville Road, Templeton MA 01468

978-360-4634

Please Templeton Selectmen, read the Department of Revenue Financial Review of 2009!

Notice what it says concerning Sewer Commissioners (Selectmen not mentioned)

1. Build a Multi-Year Revenue and Expenditure Forecast:
The sewer department needs to build a realistic multi-year revenue and expenditure forecast. Absent a solid projection, a true fiscal picture of the future spending in relation to estimated revenue is lacking. Financial forecasting not only allows officials to better understand and quantify the long-range impact of policy proposals, it contributes in a significant way to the annual budget process by working hand-in-hand with the capital planning and fee setting process.

2. Establish a Comprehensive Capital Improvement Program: The sewer department should outline a formal capital improvement program built on a multi-year plan that embodies clear spending priorities. An important resource would be the inventory of fixed assets the town was required to produce under GASB 34. A five year plan, updated annually, would be a useful tool and the basis of the department’s submission of capital requests to the town’s capital planning committee for review.

 3. Review Fee Schedule: Because the sewer department operates under a fee-for-service model, it is financially prudent that officials review fees annually to verify that the total operating costs are adequately covered by revenues. A review should include an examination of direct and indirect costs, anticipated capital outlays, debt service, or other operating costs.

4. Make Decisions on the Use of Retained Earnings: Retained earnings reflect the year-end surplus in the enterprise fund that, once certified by DOR, may be appropriated to support sewer-related purposes. The sewer commissioners should plan long-term for the accumulation and use of retained earnings. We typically recommend that a percentage of retained earnings be retained to cover ongoing maintenance costs and anticipated capital needs.

5. Outline Indirect Cost Formula: An indirect cost is a cost incurred or the time devoted by other town employees to enterprise purposes. We recommend that the town accountant develop a basis for calculating an annual indirect cost reimbursement to the town. The formula should have long-term applicability in a way that produces a fair and consistent annual reimbursement for services provided. To begin, survey each office to account for the amount of staff time spent on sewer enterprise fund activities.

An annual reimbursement from the enterprise fund to cover costs of any services provided by other town departments. There is no mention of cutting employees, transferring employees from one department to another. The spin needs to stop!

TO: Board of Selectmen
FROM: Carter Terenzini, Town Administrator
RE: Administrator’s Weekly Report
DATE: February 14, 2019
CC: All Departments



Weekly Report:
We have received the $30k grant from the Community Compact to fund the study of our (T’ton and P’ston) shared Fire/EMS Departments. We have circulated the first cut at a Draft w/P’ston and hope to finalize it and have it out on the street by 02/28. Budget work has consumed the week with the so-called “Last Call” budget going out to all departments for review and comment. It does provide for a 2 ½% increase to Monty Tech and the NRSD but – for the moment – assumes the balance of their needs are met with their Over-Ride. The Request for Letters of Interest was issued to fifteen parties we were able to identify, and we included the BES Disposition flyer in it as well. We will continue to try to identify additional parties over the next two weeks or so. We received the perambulation results from Hubbardston (MGL Ch. 42 §2). Staff is researching when this was last done with our adjoining towns as it is statutory required every five year (although it is honored in the breach across most of the state).

NRSD - their override???

Templeton, like all other communities in the Commonwealth, must provide a sum of money to provide for an adequate education of children. So, the Narragansett Regional School District / school committee decide on a budget, level funded, level service, increase in staffing, etc., and then the NRSD comes up with the cost for Phillipston and Templeton. According to state law, the district sends the assessment or bill, to Templeton, it is up to the selectmen to come up with a way or plan on how to deal with that "bill", for service.

The selectmen have options on how to pay that bill, one of those options is an increase of the levy, or prop 2 1/2 override; it is the responsibility of the selectmen to do that, not the school committee. The selectmen are charged with the finncial affairs of the Town, they are charged with placing items on the Town Meeting warrant. If there is an override, it will be a Templeton override, to pay Templeton charges, assessments or bills. The school district is a cost of the Town and there fore it would be, if called for, a Templeton override, it would be the selectmen's override, not the NRSD override.

The selectmen can try to spin it this way or that way, but in the end, if the route chosen is a prop 2 1/2 override, it will be for the operating costs of the Town of Templeton, it will be on the selectmen!

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.