Town of Buxton
Minutes for April 9, 2008 Selectmen’s Meeting
Prepared by: Dianne Senechal
Members Present: Jean C. Harmon, Clifford L. Emery, Robert C. Libby, Daniel T. Collomy and Linda W. Pulsoni.
Others Present: Peter Pinkham, Anne. Robishaw, Joan. Weeman, May Schumacher, Peter Burns, Larry Miller, Don Warren, Nick Pinkham, Penny Booker, Dennis Santolucito, Olive Collomy, Ron Smith and Cliff White
Business Meeting Agenda
1. Call to Order.
The Meeting was called to order at 6:03 p.m.
Open Audit Bids -- 5
2008 2009 2010
Purdy Powers & Company $11,200 $11,200 $11,200
Runyon Kersteen Ouellette $14,700 $15,400 $16,000
RHR Smith & Company $5,200 $5,200 $5,200
Ron L. Beaulieu & Company $3,100 $3,100 $3,100
Non auditing fee drafting financial $2,000 $2,000 $2,000
Statements
James A. George $13,980 $14,679 $15,413
2. Approval of Prior Meeting Minutes.
Selectmen’s Meeting Minutes April 2, 2008.
3. Discussion held between 5:00 & 6:00 p.m.
None
4. Review of Correspondence.
· Letter from Lt. Kelly Weymouth, Buxton Fire & Rescue – Re: Thank you to Pythian Sisters
· E-Mail from Laura Veilleux, Maine Municipal – Re: LD 2257 statewide Building Code bill
· E-Mail forwarded by John Myers – Re: LD 2270 Proposed Change to Excise Tax
· E-Mail from Patrick A. Bonsant, Saco River Community Television – Re: March News
· E-Mail forward by John Myers – Re: Maine GeoLibrary 2008 Planning Project
· E-Mail from Saco River Cable Committee – Re: Surveys sent to residents of six Towns and used for franchise negotiations
· E-Mail from Saco River Cable Committee – Re: LD 2133 Model Franchise Agreement
· E-Mail from Representative Don Marean – Re: Supplemental Budget Enacted
· E-Mail from Geoff Herman, Maine Municipal Association – Re: LD 1932 (School Consolidation Legislation) passed then vetoed by the Governor
· E-Mail from Peter Coughlan, Maine Department of Transportation – Re: Quality Community Program Applications due by June 6th, 2008
5. Review of Projects and Issues.
Selectmen Libby, Collomy and Emery attended a session on the new Personal Property law on Monday night, April 7, 2008.
Selectman Collomy reported that the bid packages for the new Town Garage will be available on April 9 from Deluca and Hoffman. Each package costs $150. The bids are due back to the Town Office by 3:00 p.m. on April 30th. On April 17 there will be an on site pre bid conference at the entrance of the new Town Garage.
Selectman Pulsoni reported that the Selectmen presented the Administration Budget on Tuesday, April 15 to the Budget Committee.
Selectman Harmon reported that the first draft of the Warrant has been completed.
6. Old Business.
None
7. New Business.
None
8. Executive Orders.
None
9. Executive Orders by Initiative.
E.O.070804009 – An order to allow the Board of Selectmen to countersign the Warrant and Notice of Election Calling Maine School Administrative District No. 6 Budget Validation Referendum (20-A M.R.S.A. Section 1305-B). Approved 5-0.
E.O.070804010 – An order to approve Fred Farnham’s attendance to an IRC Residential Inspection Workshop. Approved 5-0.
10. Accounts Payable and Payroll Warrants.
E.O.070804007 -- An order approving expenditures as documented in Accounts Payable Warrant #41-08. Approved 5-0.
E.O.070804008 -- An order approving expenditures as documented in Payroll Warrant
#41-08. Approved 5-0.
11. Next Meeting of the Board.
Budget Committee Workshop will be held at 7:00 p.m. on April 10 and April 15
Planning Board Meeting Monday, April 14, 2008 at 7:00 p.m.
Selectmen’s Meeting Wednesday, April 16, 2008 at 7:00 p.m.
Final Budget Committee Meeting w/Selectmen Thursday, April 17, at 7:00 p.m.
12. Other Business.
Special Town Meeting follows this Meeting at 7:00 p.m.
Public Hearing on Charter Changes at 7:10 p.m. tonight
13. Public Comments and Questions.
Ron Smith of RHR Smith & Company was invited to speak to answer questions submitted by the Budget Committee. The following questions regarding the Recreation Department were discussed:
1. Why does the audit report for the fiscal year ended June 30, 2007 show revenues and expenditures different than the amounts in the Town’s Munis accounts.
Revenues, expenditures and reason
The revenues differ and were hard to identify as Accounts Receivable were used to balance the account. It is expected that 15 – 20% of the amount is uncollectible. The Accounts receivable was modified by the Accounts Receivable by about $30,000. The expenditures should match the Munis account and in two weeks the Auditors will know more about the accuracy as changes are being made to the policy and procedures.
2. Were the Munis accounts not presented consistently with previous years, hence the need for the adjustments this year?
The adjustments were due to billing by about $14,000 - $15,000 in adjustments.
If the Munis accounts were done consistently, what/who prompted these audit adjustments to be made?
To establish the full facts and figures the receivables included collect ability and the verification list after July 1 was extended to October 31. About 15% - 20% of funds were written off – maybe more.
3. To the extent that receivables were included in the audit report revenues:
(a) how was the collectibility of those receivables verified?
If the treatment of receivables differed from what was fairly stated as of June 30, 2007, it was represented by the record keeping presented by the Recreation Director and the accuracy had some flaws
(b) what provision for uncollectibility was made?
15% - 20 % written off
(c) was the auditor aware that the Recreation Director has doubts about collectibility?
Yes, auditors reviewed recordkeeping functions and found incomplete addresses and there were doubts about the accuracy of the information.
(d) were receivables included as of the beginning of the accounting period, and if not why not?
Receivables were added at the end of the accounting period.
4. Apparently the Recreation Director uses separate accounting software for the recreation functions of the Town. How has the Auditor satisfied himself about the integrity of the accounting results arising from that system and the integrity of their accurate and timely recording in the Town’s Munis Accounts?
The Recreation Director does have special recreation software that is not tied into the existing accounting system. The Auditors have not satisfied themselves that they have covered all the problems. They may have a better understanding once the Director is using the Munis software.
5. In the Recreation Activities Special Revenue Fund, what are the principal reasons for significant excess of expenditures over revenues that has arisen and been growing over several years?
Three programs combined show that the recreation programs overall are in the black. However, the problem appears to becoming worse and needs to be watched by the Selectmen and the Recreation Director because at some point, and it may be soon, the breakeven point may be reached. The Board of Selectmen need to oversee and govern the programs for reassurance and improve/develop better policies used by the Recreation Department.
Larry Milled asked some clarification questions regarding the excess of revenue and the amount that was deemed uncollectible.
Dennis Santolucito questioned the collections program used by the Recreation Department and why this happened or was allowed to happen. If some one enrolls for the after school program or the summer rec program and they don’t pay, why are they allowed to continue. He also asked how significant the problem is. Answer, as shown above $15,000 or more may be uncollectible.
Larry Miller questioned the 2007 – 2008 audit report and if the figures would be correct.
Peter Burns asked if the Community Day account was not a separate account outside the Recreation Department. Answer – yes.
May Schumacher stated that she ran a Day Care and if the parents do not pay on Friday their child is not in her care on the following Monday. She wanted to know why this happened and if the policy was going to be changed. Told that the problems would be handled.
14. Adjournment.
Motion made and seconded to adjourn the Meeting at 6:58 p.m. Approved 5-0.
| 
