TOWN OF GRANBY
BOARD OF FINANCE
MINUTES
JANUARY 12, 2004
PRESENT: Michael Guarco, Chairman; Christopher D. Comer, Al Wilke, and Richard O’Brien.
Also present: William F. Smith, Jr., Town Mgr.; Barbarajean Scibelli, Finance Officer; John E. Adams, First Selectman; Harry Traver, BOE Business Manager; Joseph Kask; Scully & Wolf, LLP, Certified Public Accountants; James C. Heminway, BOE Chairman; and Gwen Van Dorp, Supt. of Schools.
Chairman Guarco called the meeting to order at 7:00 p.m.
Minutes
The Board reviewed the minutes for the meeting of December 8, 2003 before taking action.
On a MOTION by Richard O’Brien, seconded by Chris Comer, to approve minutes of December 8, 2003, the Board voted unanimously (4-0-0) to approve.
Auditors Report – 2002- 2003
Mr. Kask reviewed the General Purpose Financial Statements, Supplemental Schedules, Independent Auditors Report, Report on Federal Awards, and Report on State Financial Assistance Programs for fiscal year July 1, 2002 through June 30, 2003. Mr. Kask stated that there are no reportable material weaknesses or internal control problems. In Scully & Wolf’s opinion, the town has complied with all requirements with respect to the State Financial Assistance Programs and the Federal Awards for the town. Auditors commented that Government Accounting Standards Board (GASB) #34 required significant changes to the reporting of capital assets. Scully & Wolf will continue to work with the town to assist in implementing the GASB #34 regulation reporting methodology. Joe Kask highlighted items from the General
Purpose Financial Statements and Supplemental Schedules, pages 11, through 16. He also commented a new section was added to the General Purpose Financial Statements entitled “Management’s Discussion and Analysis. This section provides a financial analysis for the past and future outlooks for the Town of Granby.
The Auditors Report noted some constructive suggestions as part of the ongoing process of modifying and improving accounting controls and administrative practices, particularly in preparation of fixed asset reporting, infrastructure reporting, and accounting standards for GASB #34. Scully & Wolf recommended that the town and Board of Education implement a single coordinated capital asset management system to timely and accurately report the information required by GASB #34. Additionally, the auditors recommended that the town develop a comprehensive plan and timeline for implementation of reporting infrastructure assets, although the new standard has provided additional time for municipalities (until July 1, 2006) to put it into practice. The town elected to defer the implementation of this retroactive reporting for
this year. A software system could be researched and purchased for the infrastructure asset reporting requirement. While many of the town's traditional fund based accounting records did not change, certain additional records were added to the financial management system. It was recommended that the town implement procedures to ensure the systematic reporting of financial results in the areas of:
· Compensated absence reporting, including the development of current vs. long term obligations
· Long-term receivable and liability control
· MD&A (management discussion and analysis) development issues
Mr. Kask indicated the town is in the right position as far as what the GASB #34 regulation requires. Questions and answers were exchanged regarding the capital non-recurring fund, special funds, fiduciary funds, and other town funds, and limitations regarding use of unrestricted fund balances.
Chairman Guarco thanked Scully & Wolf, the administration, and staff for a job well done.
Statements Of Accounts
Harry Traver, BOE Business Manager, highlighted the December Statement of Accounts.
* Teaching Assistant (special education) shows a deficit ($21,000)
* Transportation (special education) shows a deficit ($20,000)
* Total budget for special education line items shows a deficit ($46,192)
* Revenue from rental fees shows an anticipated increase of $28,000
Gwen Van Dorp, Superintendent of Schools, indicated three special education students may be added to the school enrollment. She summarized that while expenses will be going up, so will the revenues. Dr. Van Dorp indicated the Plus One Budget for the Board of Education should be increased by 2% to meet special education needs.
Barbarajean Scibelli, Finance Officer, reviewed the December Budget Operations Report and responded to questions raised by the Board regarding short-term investment rates and the auto supplement account. She indicated that other revenues are on target. Funds for accounts 311 ($3,173), 326 ($66,326), and 336 ($16,423) were reviewed and the overall balance is favorable. However, the State is not funding all Veterans’ exemptions, although the town is still mandated to offer the program.
On the Expenditure side, the communications and dispatch account may show an overage by the end of the year. She also indicated there may be concern for the General Maintenance account depending on the number of winter storms.
Town Manager Smith reported on an Updated Plus One Budget memo distributed to the Board of Finance. The Board of Selectmen made adjustments and reductions to Fringe Benefits, adjustments to additional staff hours and overtime needs, and deleted a requested new staff person in public works. The new base total is now $350,000 over the 2003-04 operations budget or 5.15%.
DISCUSSION OF BUDGET GUIDELINES FOR 2004-05
The Board of Finance discussed the budget guidelines for 2004-05, including grand list number, state-aid number, mill rate number, and other data to be received at a later date. They indicated their wish to accommodate the Board of Selectmen with a 4-5% budget guideline and the Board of Education with a 5-6% budget guideline, and keep the mill rate under 5%.
The budget guidelines will be finalized in February at the Board of Finance meeting.
MISCELLANEOUS
The Board of Finance assigned members Gordon Bischoff and Richard O'Brien to continue as representatives to the Capital Program Priority Advisory Committee.
Chairman Guarco indicated the following meetings have been scheduled:
· CPPAC meeting - January 26, 2004 at 7:00 p.m.
· Three Board meeting - January 26, 2004 at 8:00 p.m.
Al Wilke reported the Intra-town Cooperative Advisory Committee has taken steps to obtain public input for ideas on shared and improved services for the school and town to engage in.
The following Board of Finance members were assigned to attend the budget workshops for:
Board of Education
· Al Wilke and Chris Comer
Board of Selectmen
· Richard O'Brien, Michael Guarco, and Francis Brady
CONFIRM DATE OF NEXT MEETING
The next meeting of the Board of Finance will be February 9, 2004 at 7:30 p.m.
ADJOURNMENT
On a MOTION by Richard O'Brien, seconded by Al Wilke, the Board voted unanimously (4-0-0) to adjourn the meeting at 8:42 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
| 
