MINUTES
REGULAR MEETING
June 2, 2010
First Floor Conference Room
Old Saybrook Town Hall
CALL TO ORDER Chairman, Carl Fortuna, called the Regular Meeting of the Board of Finance to order at 7:30 P.M.
Attendant Members Absent Members
Carl Fortuna, Chairman
George Whelen
Lee Sparaco
Grant Westerson
David LaMay
Barry O’Nell
John O’Brien
In Attendance
Bob Fish, Treasurer
Carol Manning, Selectwoman
Barry Maynard, Tax Collector
Ronald Nossek, Auditor, Kostin Ruffkess & Company
Gerri Lewis, Clerk
Minutes
Motion: To approve the May 18, 2010 special meeting minutes as presented.
Moved: J. O’Brien Second: G. Westerson
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay Abstain: G. Whelen 6-0-1 |
At this time, Mr. Fortuna called upon Mr. Nossek who highlighted certain sections of the audit: the Independent Auditor’s Report on pp 2-3, the statement of net assets on pg. 11, the summary of revenues on p.12 and he went over the Town Balance sheet. A question arose by Mr. O’Nell about “carryovers” and monies “reserved for encumbrances” as noted on pg. 14. Mr. Nossek explained these terms, noting the former must be approved by the Board of Finance and the latter must be a firm contractual commitment. If an encumbrance is changed at a later date, the money is forfeited for that purpose and it drops to the “bottom line.”
Mr. O’Brien asked specific questions about past requested encumbrances and noted they were not backed with firm contractual commitments. The Chair, while not having the paperwork in front of him, recollected differently. Mr. Fortuna recalled that the reserves for encumbrances did have firm commitments to contractually spend money. Mr. Nossek agreed that this would be best practice. Mr. O’Brien indicated that he is not concerned about the past so much as he wants to establish a process moving forward. This point was agreed upon by the entire board.
Next, a discussion occurred about budgetary control by each department. Paragraph 7 of section II A was referenced on page 28. Mr. Nossek stated that as long as the budget is not exceeded, control is at the department level. However, because Old Saybrook budgets for capital items, the issue came up as to whether a capital item could be purchased that was not budgeted for in a particular department, even if that department does not exceed its budget by purchasing said capital item (and what if that capital item exceeds 25K). The Board noted that it has been waiting since January for this question to be answered by Attorney Cronin.
Further discussion ensued about a Code of Conduct for Department Heads, something with which Mr. Nossek agreed he could assist us by giving us a sample policy. Chairman Fortuna thanked Mr. Nossek for coming in and for his assistance to the Board.
It was agreed that Chairman Fortuna would generate a revised memo to all Commissions, Boards and Department Heads about the policies in place for not exceeding budgets and would re-draft a policy statement on Requests for Carryovers and Reserves for Encumbrances.
A discussion ensued about the Pension Board and their investment guidelines. Ms. Manning inquired as to the Pension Funds in the audit manual. Treasurer Fish noted that the Pension Board hired Merrill Lynch and that there is a quarterly report that can be seen upon request. Mr. Sparaco felt that the Board of Finance should talk to the Pension Board. It was agreed that the Board of Finance would invite the Pension Board in for a meeting. Chairman Fortuna will take care of this.
Chairman Fortuna then called upon Treasurer Fish for his report.
Mr. Fish discussed his usual report re expenditures, revenues and special ed excess costs. He noted that revenues were received from the State and expenses are down. He noted that Barry Maynard, Tax Collector was doing great re: tax collection rates. Mr. Fish noted that things are looking a lot better, and felt that we would break even for the year.
Mr. Fish gave two documents to the Board of Finance that were previously requested by Mr. Sparaco: 1. A breakdown of all capital outlay sinking funds and 2. WPCA expenditures from the Sewer Fund which Chairman Fortuna will scan and send out to the Board and Clerk. Mr. Fish also reported that, on the technical side, Roland Laine is implementing a back-up system at the town hall.
Chairman Fortuna thanked Treasurer Fish for his report and input.
A discussion with regard to WPCA arose and it was felt by the Board that the WPCA should come to a meeting in July. Chairman Fortuna noted that he emailed the chairman, Mike Evangelisti and Robbie Marshall, and they have agreed to come to a meeting in July.
Chairman Fortuna noted that he expected to have 1 meeting a month during the summer months unless otherwise necessary.
Motion: To adjourn at 8:45 p.m.
Moved: G. Westerson Second: B. O’Nell
Discussion: None
Approved: C. Fortuna; S. Whelen; ; D. LaMay; G. Westerson, J. O’Brien, B. O’Nell; L. Sparaco 7-0-0
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Respectfully Submitted,
Gerri Lewis, Clerk
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