BOARD OF FINANCE
MINUTES
AUGUST 22, 2011
I. CALL TO ORDER
Chairman Harrison called the meeting to order at 7:04 p.m. at the Avon Town Hall, Selectman’s Chambers. Members present: Chairman Thomas Harrison, Catherine Durdan, William Hooper, Margaret Bratton and Thomas Gugliotti. James Speich and Brett Eisenlohr were absent.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Ms. Durdan.
III. COMMUNICATION FROM THE AUDIENCE
There was none.
IV. MINUTES OF PRECEDING MEETINGS: June 27, 2011
Mr. Harrison requested revisions for section VII, 4th paragraph to state “Revolving Account” and pg 3, updates and reports to specify “12” instead of “08/09”.
On a motion by Ms. Durdan, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance approve the minutes of June 27, 2011 as amended.
Messrs. Harrison, Hooper, and Mmes. Durdan and Bratton voted in favor. Messr. Gugliotti abstained.
V. OLD BUSINESS
Ms. Bratton questioned the Governor’s Horse guard status. Mr. Robertson reported that the Horse Guard was funded in the State budget. Ms. Bratton also asked the status of the assistant superintendent position. Ms. Roell reported that Ms. Schwartz was appointed to the interim post and that the position was being reviewed
VI. NEW BUSINESS
11/12-01 Supplemental Appropriation: Board of Education Food Steamer, $18,259.38
Mr. Gugliotti questioned why the funds needed are coming from this specific line item (Fund #14 Special Revenue Fund) and Mr. Harrison questioned where the money comes from that funds that account. Mr. Franzi responded that this is the remaining balance after all other funds are spent and Ms. Roell added that this is the money from the kids paying for their school lunch. Mr. Robertson added that this is one of the special revenue funds that does have an appropriated budget and a non-lapsing balance so it carries over. Mr. Harrison asked what the balance of this fund is and Ms. Colligan answered about $230,000. Ms. Durdan questioned why we raised the costs of school lunches if we have a pot of over $200,000. Mr. Franzi responded that compared to other schools the amount is still low and they had not increased it in many
years. Ms. Bratton asked what the $230,000 will pay for and Ms. Roelle stated that the $230,000 is for other capital purchases.
On a motion by Mr. Gugliotti, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $18,259.38 from the School Cafeteria, Other Financing Sources, Undesignated Fund Balance, Account #14-0390-43913 and to the School Cafeteria, Board of Education, Cafeteria Fund, Account #14-9401-59600, for purchasing a steamer.
Messrs. Harrison, Gugliotti, Hooper and Mmes. Durdan and Bratton voted in favor.
11/12-02 Supplemental Appropriation: Board of Education Purchase of new Financial System, $224,475
Mr. Harrison felt the supplemental materials provided by Mr. Robertson in the memorandum were useful and questioned if these materials should be included within the BOF minutes.
On a motion by Mr. Gugliotti, seconded by Mr. Harrison, it was voted:
RESOLVED: That the Board of Finance include a copy of materials provided by the Town Manager including resolution and financial backup within the final BOF meeting minutes.
Messrs. Harrison, Gugliotti, Hooper, and Mmes. Durdan and Bratton voted in favor.
Mr. Gugliotti would like the minutes to reflect that there is a missing link between how the money came in and money went out. He questioned how it is possible to take money from the Special Ed account and use it to pay for a software system instead. Mr. Franzi commented that the funds from Hartford for the Special Ed program have to go to the Special Ed program. He explained that this is money the BOE pays up front and now the Hartford School System has essentially paid the money back leaving a balance in the Revolving Account. Mr. Harrison asked if we received more than the amount given up front and Ms. Roell answered it was the same amount. Mr. Gugliotti asked what the surplus would be spent on if there weren’t a need for the new software. Ms. Bratton asked if it would go to replenish the operating budget. Ms.
Roell answered that that is what the appropriation will do, be moved into the General Fund Operating Budget. Mr. Harrison questioned if the Special Ed account is part of the Revolving Account and if the budget for next year would reflect that. Ms. Bratton questioned if the Special Ed account would be considered separately within the revolving account and Mr. Harrison asked if this was something that was evaluated with Blum Shapiro. Ms. Colligan responded yes, that it is planned to remain in the General Fund and will be included as a new revenue line item giving it its own identified place.
Mr. Gugliotti questioned the options listed on the memorandum and what the alternative is versus splitting it up. Mr. Robertson responded that his recommendation is to approve the $225,000 and not to split it up. Mr. Harrison agreed. Mr. Gugliotti was concerned that the wording within the memorandum is confusing and clarified by adding the phrase, “and then” into the information. Ms. Bratton commented that it should state that it is all coming from BOE, not Town. Mr. Harrison mentioned that there is a pretty good chunk in the revolving account and questioned if there is any idea why? Ms. Colligan responded that the Revolving Account reflected several years of transactions for which grant activity had been increasing but the budget appropriation had not been identified as how to handle. Also new revenue
sources, such as pay to play, were determined to be a consistent funding source. That will now be budgeted and reported as a Special Revenue Fund, as well as including additional special purpose funds such as donations and grants.
Superintendent of Schools, Mr. Gary Mala, was given the floor to discuss the need for the software. He pointed to the document packet he prepared. He commented that they have a system that is not meeting their needs; many things need to be done manually. This is a change that is urgent. Ms. Bratton questioned Mr. Franzi why they chose this software instead of other more commonly used software programs. Mr. Franzi answered that after reviewing many other programs they felt the software’s integration with their current program provided them the most functionality. Mr. Harrison questioned if they are certain of this program. Mr. Mala responded that this software will meet the needs of the district for the future. Ms. Bratton requested some information regarding the programs up until now. Mr. Mala and Mr. Franzi
responded that the first program used, Phoenix, and their current one, Microsoft Great Plains, were both Microsoft based so they thought everything would be transferred over easily. Unfortunately that was not the case leaving them to still do many things manually. Ms. Bratton asked why they continued to add such expensive updates into a program that they felt was not great and did we receive any compensation for these difficulties. Mr. Franzi answered that they were waiting until the new superintendent came on to help make the decision, and no, there was no compensation. Mr. Harrison questioned if these software programs will play nice together, integrate easily, merge files, etc. Ms. Colligan responded that it looks like it will do this very well. Mr. Gugliotti questioned Mr. Mala when the software will become useful. Mr. Mala answered that it would not be completely set up for this budget year but hopefully for the next budget.
Ms. Bratton directed the following question to Mr. Robertson: “I have a general inquiry about BOE finances. Just as the Matrix consultant was something that we needed and acted upon a forensic audit may be something that we consider in the near future. Out of curiosity, what would a forensic audit cost and how long would it take? If you could find this out in time for our September BOF meeting that would be great.”
Mr. Harrison requested that the motion be addressed before the response for this inquiry.
On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 10/11 budget increasing General Fund, Other Local Revenue, Tuition Reimbursement, Account #01-0360-43614 in the amount of $224,475, increase General Fund, Capital Improvement Project, Equipment, BOE Financial Software System, Account #01-8503-53113 in the amount of $224,475 for financial system, servers and consulting agreement and increase Capital Projects Fund (Facilities and Equipment), Other Financing Sources, Interfund Operating Transfers In, Account #02-0390-43918 and Capital Projects Fund (Facilities and Equipment), BOE CIP-Equipment, BOE Financial Software System, Account #02-4864-53113 in the amount of $224,475 for the purpose of recording Special Ed reimbursement revenue from Hartford to cover SPED services, thus freeing up fiscal capacity to
provide the funding for the implementation of the Board of Education new Financial System.
Messrs. Harrison, Gugliotti, Hooper and Mmes. Durdan and Bratton voted in favor.
Ms. Bratton repeated her inquiry and in response Mr. Robertson reported that, in his experience, forensic audits were very in depth and quite expensive. Mr. Gugliotti questioned if this is what Blum Shapiro already does. Members of the Board and the audience commented, no, it is not. Mr. Robertson also noted that he would look into the details of a forensic audit and return with more information. Mr. Harrison suggested that Ms. Bratton meet with Mr. Robertson to clarify and discuss this further.
11/12-03 Transfer of Appropriation within the Capital Projects Fund and Appropriation from Use of School Facilities Fund Undesignated Fund Balance and Transfer of Appropriation to Capital Projects Fund: AMS Tennis Courts, $40,000
Mr. Robertson commented that this agenda item had not been approved by the Town Council yet but they had been made aware of it. Mr. Gugliotti questioned why this is $20,000 more than originally asked. Mr. Harrison questioned if it is coming out of the BOE’s Revolving Account. Mr. Gugliotti commented that if the private money didn’t come in then the worse would be they would have to come back and ask again, and the answer would most likely be a no. Mr. Robertson answered that the Town’s contribution is going to be north of a $100,000. Mr. Gugliotti asked what is the total cost going to be. Mr. Robertson answered $180,000. Ms. Durdan questioned what the time frame would be. Fundraising committee members, Mary Maranelo and Laura Young added that private monies have been collected over the past few years, 3
superintendents ago. They are also very excited about a possible USTA (United States Tennis Association) grant and private donations. Mr. Hooper questioned when the fundraising is expected to be done and Ms. Young responded that they had finished fundraising and now are waiting on the USTA grant. Mr. Gugliotti questioned when construction would start and suggested spring 2012 would be the best in order to help keep a typical court’s life span. Ms. Young responded that it had not been decided yet but they will be working with Bruce Williams who has done this before and they trust his expertise and opinion. Ms. Bratton questioned when the court would be able to be used by the general public taking into consideration school days, after school practice, etc. Ms. Maranelo and Ms. Young responded that all the details had not been finalized but they believed that weekends, summers and late evenings in the spring and fall the courts would open to the public.
On a motion by Mr. Gugliotti, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 11/12 budget by transferring from Capital Projects Fund (Facil & Equip), Town CIP-Facilities, Police Communications Center Upgrade, Account #02-4829-53070 to Capital Projects Fund (Facil & Equip), BOE CIP Facilities, AMS Tennis Courts, Account #02-4859-53109 in the amount of $20,000; and an appropriation not to exceed $20,000 from Use of School Facilities, Other Financing Sources, Undesignated Fund Balance, Account #15-0390-43913 and Use of School Facilities, Other Financing Uses, Interfund Transfer-Out, Account #15-8700-58000; to Capital Projects Fund (Facil & Equip), BOE CIP-Facilities, AMS Tennis Courts, Account #02-4859-53109 and Capital Projects Fund (Facilities & Equipment), Other Financing Sources, Interfund Operating Transfers-In
Account #02-0390-43918 in the amount of $20,000 for the purpose of Town and BOE funding for the AMS Tennis Courts.
Messrs. Harrison, Gugliotti, Hooper and Mmes. Durdan and Bratton voted in favor.
VII. TOWN MANAGER'S REPORT
A. Monthly Financial Report Summaries
Ms. Colligan discussed the monthly report for the period ending 6/30/2011. Building permits exceeded appropriations, which was anticipated in April. Intergovernmental revenues came in as expected. Charges for services came in behind, which was noted early on in certain areas like landfill. Other local revenues did well with one-time revenues including recycling rebates, a FEMA reimbursement, incentive rebates from CL&P, all of which helped the budget. She also noted that the BOE may have a return of appropriation. She stated that the Town avoided using a lot of fund balance, even though $100,000 was budgeted. A few small appropriations were made throughout the year, but once again this is on a cash basis. She said the Town hopes to see an increase in fund balance. Expenditure highlights included a 1% return on the
town side ($177,213), which will really help our bottom line. As usual, legal did exceed appropriations. At this point in time our special revenues, internal service and capital projects fund continue to be doing well, largest capital project at this time being the library.
Mr. Robertson praised Ms. Colligan and those who help her prepare the GFOA budget, as the Town recently received its 28th consecutive GFOA Award for Excellence.
Mr. Harrison commented how much he appreciated that Ms. Colligan came back from vacation just for this meeting.
VIII. OTHER BUSINESS
There was no other business.
IX. EXECUTIVE SESSION
On a motion by Mr. Harrison, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance go into Executive Session at 8:56 pm. Messrs. Harrison, Gugliotti, Hooper and Mmes. Durdan and Bratton voted in favor. On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted: RESOLVED: That the Board of Finance come out of Executive Session at 9:05 pm.
Messrs. Harrison, Gugliotti, Hooper and Mmes. Durdan and Bratton voted in favor.
X. ADJOURN
On a motion by Mr. Harrison , seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:06 p.m.
Messrs. Harrison, Hooper, Gugliotti and Mmes. Durdan and Bratton voted in favor.
Respectfully Submitted,
Thomas A. Gugliotti, Secretary
Attest: Amber Lansing, Clerk
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