INVESTIGATION AND AUDIT COMMITTEE
TOWN COUNCIL MAJORITY OFFICE
DECEMBER 10, 2008
PRESENT William P. Horan, Jr., Chair; Councillors Barbara Rossi and Donald H.
Pitkin (arrived 5:33 p.m.)
ALSO
PRESENT Michael Walsh, Finance Department
Linda Trzetziak, Assistant Finance Director
Michael LeBlanc, Blum Shapiro
Joanne Zatarain, CPA, East Hartford Board of Education
Joseph Carlson, Treasurer (arrived 5:35 p.m.)
CALL TO ORDER
The Chair called the meeting to order at 5:30 p.m.
APPROVAL OF MINUTES
October 28, 2008 Meeting
MOTION By Barbara Rossi
seconded by Bill Horan
to approve the minutes of the October 28, 2008 meeting.
Motion carried 2/0.
OPPORTUNITY FOR RESIDENTS TO SPEAK
None
NEW BUSINESS
Receive and Accept the Draft of the Comprehensive Annual Financial Report for Fiscal Year ended June 30, 2008
Michael LeBlanc, of Blum Shapiro, gave a brief overview of the Comprehensive Annual Financial Report (CAFR), and Michael Walsh, Finance Director, noted that the end of year fund balance was even higher than he had expected and as he had reported to the Town Council in June 2008. Mr. LeBlanc addressed some specific accounts in the CAFR, including that for the golf course and the capital improvements that have been completed there and are expected to be completed there.
Mr. LeBlanc also noted that GASB-34 has been in use for several years now, and a full accrual method of accounting is in use. Additionally, Mr. LeBlanc noted that 2008 was the first year for employing GASB-45, and that as a result the Town had a decrease in net assets, as shown in Table 2 on page 6 of the CAFR, due to a change in actuarial methods.
Mr. Walsh also pointed out various aspects of the CAFR that are significant, including OPEB and the Pension Plan. He noted that the town’s tax collection rate is down approximately 1.5% but explained that the reduction is, in all likelihood, due to several factors, such as; (1) changing personnel in the tax office; (2) the economy affecting taxpayers’ ability to pay; and (3) the fact that a tax lien sale was not effectuated in this fiscal year. Mr. Walsh also stated that for the third consecutive year the Grand List has produced less revenue than the year before (page 76 of the CAFR), which will undoubtedly make the budget process a daunting task.
MOTION By Don Pitkin
seconded by Barbara Rossi
to accept the draft of the Comprehensive Annual Financial Report as
presented by the town's auditors for Fiscal Year ended June 30, 2008.
Motion carried 3/0.
ADJOURNMENT
MOTION By Don Pitkin
seconded by Barbara Rossi
to adjourn at 5:59 p.m.
Motion carried 3/0.
C: Town Council
Mayor Currey
Mike Walsh, Finance Director
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