TOWN OF GRANBY
BOARD OF FINANCE
MINUTES
DECEMBER 12, 2005
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Frederick Moffa, OD; and Al Wilke. Francis Brady arrived late.
Also present: Barbarajean Scibelli, Finance Officer; Joseph Kask; Scully & Wolf, LLP, Certified Public Accountants; John Adams, First Selectman; Gwen Van Dorp, Supt. of Schools, and Harry Traver, BOE Business Manager; Cal Heminway, BOE Chairman
Chairman Guarco called the meeting to order at 7:30 p.m. He noted that Chris Comer resigned from this Board due to other commitments.
MINUTES
The Board reviewed the minutes for the meeting of November 14, 2005 before taking action.
On a MOTION by Gordon Bischoff, seconded by Al Wilke, to approve minutes of November 14, 2005, the Board voted unanimously (4-0-0) to approve.
STATEMENTS OF ACCOUNTS
Harry Traver, BOE Business Manager, highlighted the BOE November Statement of Accounts. Mr. Traver indicated that the regular education budget is showing a proposed deficit of approximately $44,000, however, special education is showing a favorable projection of approximately $49,000. This could change given the volatile nature of special education. Currently there is a freeze on some accounts to keep an eye on spending.
A discussion was held regarding the possibility of signing a contract for electricity in January 2007. Some of the discussion items were drivers (natural gas 85% in CT) for increasing the cost of electricity, the organization (CCM) heading up the electricity forum, how do you take advantage of any decrease in cost (don't foresee it), and review of the benchmark used (who has signed up already (#15 regional school). BOE Chairman Heminway commented that the Board of Education agreed with this strategy.
Gwen Van Dorp, Superintendent of Schools, indicated the shortfall in the regular education salaries was due to a long-term illness and a vehicle accident. On the revenue side the rental fees and tuition from other towns are on track.
Barbarajean Scibelli, Finance Officer, reviewed the November Budget Operations Report. She indicated that tax collection is up 1% or 56% has been collected as of November 30, 2005. Mrs. Scibelli reported a journal entry was made twice in account number 320. Revenues and expenditures are on target.
On the Expenditure side, Public Works general maintenance shows 37% expended, however, the expenses from two storms have not been processed yet. She also indicated that fuel oil and electricity will continue to be watched especially for the next few months. Mrs. Scibelli commented that from the October storm there was approximately $7,000 of extra cost for the town at Salmon Brook Park and we are waiting to hear from the insurance company regarding the repairs at Cossitt Library. In a response to a question from Chairman Guarco, Mrs. Scibelli indicated the short-term investment interest rate was going up.
AUDITORS REPORT – 2004- 2005
Mr. Kask reported that the three documents for audit purposes have been completed. They are: the Financial Statements and Supplemental Schedules, Independent Auditors Report, and Report on State Financial Assistance Programs for fiscal year July 1, 2004 through June 30, 2005. He noted that there are no reportable material weaknesses or internal control problems. In Scully & Wolf’s opinion, the financial statements referred to above on behalf of the Town of Granby have conformed to the accounting principles for the year ending June 30, 2005. He gave highlight to Exhibits I, II, III, IV, VI, and pages 23, 41, 45, 48, 49. On page 41 it was noted to take special attention regarding the net pension obligation for year end.
The auditor commented that Government Accounting Standards Board (GASB) #43, starting July 1, 2007, will need to be phased-in in a tiered manner similar to GASB #34 and will impact governmental entities that provide health insurance and other benefits to employees upon retirement. The town, with auditor assistance, need to establish a comprehensive plan to address the various provisions and effects of the new postemployment standard. This plan should not take effect before July 2007. The auditor is anticipating starting an analysis regarding the postemployment benefits in spring 2006. This analysis will ensure that the accounting and reporting structure does not inhibit the town from making alterations based on changes in economic conditions and other circumstances.
The GASB #34 reporting (Infrastructure Reporting) will start in July 2006. He commented a lot of work was put into this reporting by the Finance Department and suggested that a program be put in place to maintain the reporting already collected. It was also recommended that policies and procedures be developed and formalized to control the operation of the capital asset management system for the fixed asset reporting under GASB #34.
The GASB #40 became effective for fiscal year ended June 30, 2005. The new standard amended certain provisions of GASB No. 3 by adding additional disclosures, and eliminating others, that provide financial statement readers with an understanding of the government's deposit and investment risk status and policies. The recommendation is that the town update their formal written policies and procedures to expand the current documented and informal practices governing control over deposits and investments.
Chairman Guarco thanked Scully & Wolf, the administration, and staff for a job well done.
CONSIDERATION OF FUNDING FOR BROAD HILL ROAD BRIDGE REPLACEMENT
The Board reviewed the memo from Town Manager Smith explaining the appropriation request in the amount of $567,000. A discussion was held regarding the Bridge Program Fund. First Selectman Adams answered questions asked by the Board of Finance. Chairman Guarco requested that a reconciling sheet of the bridgework be prepared.
On a MOTION by Gordon Bischoff, seconded by Al Wilke, to approve the appropriation request of $567,000 from the General Fund to the Bridge Program Fund for the construction of replacing the Broad Hill Road Bridge over the west branch of Salmon Brook, the Board voted unanimously (5-0-0) to approve.
ORGANIZATIONAL MATTERS
ON A MOTION by Al Wilke to nominate Michael Guarco as Chairman of the Board of Finance, and to nominate Gordon Bischoff as Vice-Chairman of the Board of Finance, seconded by Francis Brady, the Board voted unanimously (5-0-0).
Mr. Brady commented that these two people were very dedicated to their position and the Board.
CONFIRM DATE OF NEXT MEETING
The next meeting of the Board of Finance will be January 9, 2004. A workshop may also be scheduled for January 9th beginning at 6:00 p.m.
ADJOURNMENT
ON A MOTION by Francis Brady, seconded by Frederick Moffa, OD, the Board voted unanimously (5-0-0) to adjourn the meeting at 9:30 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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