7/12/2010 BOARD OF SELECTMEN Minutes

Home Browse Search

Board of Selectmen Minutes July 12, 2010 WO APPOINTMENTS & HEARINGS: Joint Meeting with Finance Committee: Auditors—EXIT INTERVIEW: The Board of Selectmen met jointly with members of the Finance Committee for the purpose of reviewing the independent auditor's report for the fiscal year ending June 2009.' Auditor Matthew Hunt of Sullivan, Rogers& Company LLC of Burlington, MA was in attendance to highlight the financial statements of gover i-nent and business type activities based on their audit as well as assessing the accounting principals used and made by management. Although there is a slight decrease in the general budget, it was explained the range is normal as a result of present economic conditions, and acceptable in terms of the bond rating. The Town's bond rating from Standard&Poor's for the August 2008 bond issue was AA+. It was noted the Stabilization Fund containing $3.4 million also assists in a favorable bond rating. Major capital asset events that occurred during the audit fiscal year include the Library construction in progress, completed roadway projects, the Fire-Substation construction also in progress and the purchase of an ambulance. It was disclosed the debt service is less than 10%of the overall expenditures which is ars acceptable range. In the Management Letter, deficiencies relative to the Town's internal control were considered. Turing the audit,recommendations for strengthening internal controls and operation efficiencies ere addressed. Recommendations as outlined in the Management Letter include the Lids Klub Enterprise Fund, Encumbrances,the Transfer Station Cash Receipts, Betterments, Police Forfeiture Accounts,the School Department, the Rental of School Buildings, Allowance for Uncollectible Ambulance Accounts Receivable, Rist Assessment and Monitoring and New Accounting and Financial Reporting Requirements for Fund Balances. Upon discussion of the Manage ent Letter, it was suggested the auditor indicate the amount of time the recommendations have been outstanding to enable the Town to focus on past issues not being addressed. Mr. Hunt was in agreement, and made note, of the 1 recommended categories in this year's audit, 5 are repeat comments. The question was asked as to the recommended amount a municipality should set aside in Stabilization Funds. Mr. Hunt stated that typ*c lly the amount set aside for stabilization�s within a 5 to 10%range of a tom's expenditures. Mr. Hunt indicated that his firm does not typically recommend how stabilization funds are expended. However, it this current economic climate,many municipalities are"dipping M`to their stabilization funds. The Selectmen agreed it is not their intent to use Stabilization Funds to balance the budget. Mr. Hunt was also asked if there is an influx of rnunicipaiities selling properties to supplement the loss of state revenue. In response, lir. Hunt stated that he has not seem a lot of this type of activity during the regular audits.