INTERMUNICIPAL AGREEMENT
FOR THE PROVISION OF
ACCOUNTING SERVICES
THIS AGREEMENT is entered into by the Town of Templeton, MA, a corporate body
politic, acting by and through its Board of Selectmen (the "Provider") and the Town of
Hubbardston, MA, a corporate body politic, acting by and through its Board of Selectmen (the
"End User"), which execute this agreement as follows:
WHEREAS, the End User is in need of professional, administrative, supervisory and
technical accounting services ensuring the proper recording and maintenance of financial records,
approving all financial payments, controlling expenditures of all town funds and auditing financial
records and transactions; and
WHEREAS, the Provider has the proven capability and experience to be able to provide
such services; and
WHEREAS, the Provider and the End User are authorized to undertake this Agreement
pursuant M.G.L. C. 40, §§4A and 4D.
NOW, THEREFORE, the Provider and End User, in consideration of the covenants and
mutual premises contained herein, hereby agree as follows:
1. TERM
This Agreement shall take effect on July 1, 2019 and continue in effect for a period of three years
unless extended or otherwise terminated as provided for herein.
2. SCOPE OF SERVICES
The Provider shall, on behalf of the End User, be present at the Hubbardston Town Offices an
average of ten (10) hours per week. The End User shall be otherwise available by email or
phone during all business hours to address problems or concerns of town staff. Normal and
ordinary inquires will be responded to within four business hours. More extensive research
will be completed within one week unless the requestor is advised that more time is needed. In
addition, the Provider shall attend the Annual and Special Town meetings as requested by the
Town Administrator. The Provider shall provide an onsite presence during the annual
municipal audit to accommodate the Town’s auditing firm.
Develops and oversees the implementation of the Town’s accounting system and procedures.
Examines, approves or disallows all town departments’ payroll and vendor payable
expenditures; oversees maintenance of all revolving funds and grants received, ensuring that
expenditures adhere to fund criteria.
Maintains a General Ledger and journal for the recording of all transactions; balances and
closes the Town’s books; maintains custody of all Town contracts; prepares and records
encumbrances into the next fiscal year; conducts internal audits of Treasurer’s cash and bank
accounts, and Collector’s detailed list of outstanding receivables.
Reconciles cash accounts with Treasurer; records monthly receivable commitments,
abatement's, and exemptions; maintains and reconciles receivables accounts with Treasurer,
Collector and Assessor.
Provides timely and accurate financial information and ensures the integrity of the financial
data by instituting proper internal controls; verifies that no claim or payable against the Town
is fraudulent, unlawful or excessive as prescribed by Massachusetts General Laws.
Prepares monthly reports to track all financial activity within the town’s funds. Oversees the
preparation of the monthly journal entries including receivable entries and reconciles these
receivables.
Processes warrants for payroll and accounts payable.
Develops and prepares year-end financial reports which include the balance sheet and revenue
and expense statements for the Department of Revenue for free cash certification. Also
prepares and submits annually the Schedule A report to the Department of Revenue detailing
all town financial activity for the fiscal year.
Assists the Town Administrator in the development of the budget by providing a working
template and providing limited proofreading for the accuracy of math and inclusion of major
cost items.
Oversees proper maintenance of inventory and fixed assets lists for compliance with GASB
regulations by amending a working list, from information supplied to them by others, to add
new capitalized items, delete capital items in surplus or otherwise disposed of and adjusting
the depreciation schedules thereof.
Works in conjunction with the Town contract Auditor, providing relevant documents and
information for the annual audit.
Creates and maintains new accounts and account lines for all Town departments for proper
financial reporting.
Performs similar or related work as required, directed or as situation dictates.
Attends an average of 85% or greater of staff meetings, to the extent they are held on days on
which the Provider is otherwise scheduled to be in the Community, and additional Board of
Selectmen meetings as reasonably required by the Town Administrator.
3. LIABILITY FOR COSTS
The Provider shall have complete and sole liability for the hiring, discipline, and management of
all personnel and supportive services, provided however that the point scoring used to consider
applications for employment shall have a bonus feature for community residents of any End User,
and the payment of all costs associated with the provision of services provided under this
agreement. Nothing contained herein shall create any employer-employee relationship between
the End User and the Provider. The End User shall have liability only for the timely payment of
all assessments rendered to it in accordance with this agreement.
4. RECORDS AND REPORTS
a. Ongoing Record Maintenance: The Provider shall ensure the creation and maintenance of
complete records as identified in the services rendered section of this agreement and in accordance
with all applicable local, state and federal laws.
b. Monthly Activity Reports: The Provider shall respond in a timely manner to the End User’s
reasonable request for a monthly summary of activities performed by the department.
c. Town Financial Reports: The Provider shall respond in a timely manner to the End User’s
reasonable request for monthly and quarterly financial reports as required by the End User’s Board
of Selectmen and Finance Committee.
5. APPORTIONMENT AND ASSESSMENT OF COSTS
The End User shall pay to the Provider per fiscal year as follows:
FY20 - $37,000
FY21 - $42,000
FY22 - $43,000
This is contingent on the End User’s receipt in FY20 of $30,000 in funds to offset the cost of
software conversions necessary to service both Town departments. It is further contingent upon
appropriation by Hubbardston and Templeton Town Meetings at their annual town meetings of
the necessary appropriations to fund the provision of and purchase of the services specified herein.
6. EXTENSION OR TERMINATION OF THIS AGREEMENT
The Parties may terminate this Agreement at any time upon no less than six months of notice
preceding the commencement of a fiscal year (i.e., by December 30, 2020 to provide notice to
terminate the provision of services effective July 1, 2021) provided however that the End User
may request the Provider to provide services on an hourly per-diem basis for two additional months
to prepare year end closing reports and documentation for the annual audit.
Notwithstanding notice of termination, the parties shall remain bound to and liable for all
responsibilities set forth herein until the effective date of such termination (i.e., July 1st) provided,
however, that the Provider shall provide to the End User all reports as set forth above.
7. AMENDMENT OF AGREEMENT
This Agreement may be amended at any time by the parties, in writing, in the same manner as it
was entered into.
8. NOTICES
Any notice required to herein shall be given in hand or by first class mail:
Board of Selectmen
160 Patriots Road – Box 620
Templeton, MA 01438
OR
Board of Selectmen
7 Main Street
Hubbardston, MA 01452
Or at such other address to be established by the parties and to be considered delivered upon the
third day after mailing.
9. SEVERABILITY
If any term or condition of this Agreement or any application thereof shall to any extent be held
invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality, and
enforce-ability of the remaining terms and conditions of this Agreement shall not be deemed
affected thereby unless one or more parties would be substantially or materially prejudiced.
10. GOVERNING LAW
This Agreement shall be governed by, construed and enforced in accordance with the laws of the
Commonwealth of Massachusetts and the parties hereto submit to the jurisdiction of any of its
appropriate courts for the adjudication of disputes arising out of this Agreement.
11. ENTIRE AGREEMENT
This Agreement constitutes the entire integrated agreement between the parties with respect to the
matters described and supersedes all prior agreements, negotiations and representations, either
written or oral.
