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 TOWN OF OLD SAYBROOK
Board of Finance |
302 Main Street Old Saybrook, Connecticut 06475-1741 |
AMENDED MINUTES FEBRUARY 7, 2012 7:00 P.M. Old Saybrook Town Hall 302 Main Street |
CALL TO ORDER Chairman LaMay called the meeting to order at 7:00 p.m.
BOF Attendant Members Absent Members
David LaMay
Grant Westerson
John O’Brien
Barry O’Nell
Tom Stevenson
Brad Thorpe
Derrik Kennedy
In Attendance
Carl Fortuna, First Selectman
Bob Fish, Treasurer
Barry Maynard, Tax Collector
Mike Evangelisti, WPCA
Ronald Nossek, J. H. Cohn, LLP
Joanne Sullivan, Chair, Budget & Fiscal Committee BOE
Gerri Lewis, Clerk
PUBLIC COMMENT: None
MINUTES 01/17/12 (Joint Meeting w/ BOE and regular meeting that followed);
Motion: To approve both sets of minutes as presented.
Moved: G. Westerson Second: B. O’Nell
Discussion: None
Approved: 7-0-0
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BOARD OF EDUCATION REPORT:
Ms. Sullivan attended the meeting in the event the board had questions. Ms. Sullivan noted that she was going back to the BOE meeting where the BOE proposed budget was being discussed and voted upon. It was noted that the proposed budget was developed in consideration of school operating needs and requirements while considering the financial constraints of the economy. Ms. Sullivan noted that the biggest concern that the BOE had was the capital expenditures. The BOE budget will be presented to the BOF by March 1, 2012.
Mr. Fortuna noted that two big items are the Goodwin School windows and the Middle School roof.
Chairman LaMay thanked Ms. Sullivan for attending. Chairman LaMay also said that he would like Ms. Pendleton to see the pictures that Mr. Stevenson took on his tour of the schools.
RONALD NOSSEK, AUDIT REPORT:
Mr. Nossek brought the board’s attention to the Management’s Discussion and Analysis for the year ended June 30, 2011 which briefly discussed the financial highlights; overview of the basic financial statements; fund financial statements including governmental funds and fiduciary funds.
Mr. Nossek discussed the balance sheet of governmental funds noting the liabilities and fund balances. He went on to discuss briefly the revenues, expenditures and excess (deficiency) revenues over expenditures. He also discussed the statement of revenues, expenditures and changes in fund balance, budget and actual in the General Fund.
Mr. Nossek discussed internal controls and other operating and administrative matters over financial reporting in his recommendations to management which are the following:
Investment Policy: It was recommended that the town adopt a comprehensive investment policy that would assist management in effectively executing and monitoring investment activity.
Computer System Security: An EDP procedures manual does not exist. It would provide back-up and training documentation and reduce the loss of knowledge due to employee absence or turnover. The policy should also include procedures to encrypt sensitive information being sent over the internet. The manual should detail security practices, access capabilities, location of computer supplies and day to day operating procedures for running equipment and operating the facility.
Disaster Prevention and Recovery: It was recommended that a disaster recovery plan should be developed to address situations across the full range of system downtime. It should address alternative operating procedures; prioritization of applications; alternative recovery site with comparable equipment; procedures for transporting data files and personnel to and from the back-up site; formal approval of the involved parties in the disaster recovery plan; and periodic testing arrangements to ensure continued system compatibility.
Capital Assets Record Keeping: It was recommended that the Town develop formal policies and procedures for each of the aforementioned areas to ensure proper record keeping and reporting.
Pension Plan – Fire Company No. 1: It was recommended that the Town engage its actuary to prepare the necessary required disclosures for the Fire Company No. 1 pension plan to be in compliance with GASB 27.
Accounting Policies and Procedures Manual: It was recommended that the accounting policies and procedures manual be updated to include job descriptions and responsibilities. It should include job descriptions and responsibilities of personnel with each department.
Bidding Procedures: It was recommended that the bidding policy be reviewed with staff and the Town require and maintain adequate bidding documentation for all expenditures over the threshold amount.
Capital Projects Authorizations: It was recommended that an authorization to spend be initiated prior to the expenditure of capital project funds.
Capital Projects: It was recommended that the Town review the date of the last invoice recorded in the capital projects general ledger at year end for vendors of ongoing projects to ensure all invoices and retainage are properly recorded in accordance with generally accepted accounting principles.
Demographic Data: It was recommended that the Town verify all demographic information prior to submission to the actuary for valuation preparation.
Payroll: It was recommended that all salary changes be approved by the appropriate person and maintained in the employee’s personnel file. Additionally, all payments should be supported by an authorized rate and for hourly employees, proof of hours worked.
With regard to the follow-up on the prior year’s recommendations the following comments were noted:
- Town has begin utilizing software that allows them to track their capital assets properly and produce the necessary reports;
- Town disbursements are being made in accordance with the provisions of the Charter;
- Sufficient supporting documentation for BOE School Lunch receipts is being maintained; and
- Transfers are now approved in order to eliminate departmental overages.
Treasurer’s Report:
Mr. Fish noted that we are now through 58% of the year. He noted that the tax receipts are ahead of last year at this time by 1.5%.
Mr. Fish went over the general fund operating budgets reporting on the expenditures and revenues. He also entertained questions with regard to the line items in the fund expenditures.
Mr. LaMay was concerned with errors in the line items. Selectman Fortuna was very concerned with line item 4901, “unfunded liabilities”. Mr. Fish was less concerned. This line item was also questioned by Mr. Thorpe as well. Mr. O’Brien inquired re the line item for KHCAC and if it was a true number. Mr. Fortuna noted that he was budgeting $30K for KHCAC and that the trustees were contributing another $6K.
Selectman’s Report:
Mr. Fortuna discussed and/or touched upon the following:
- Health Insurance; spoke with Tom Kowalczyk of USI about self insuring; will follow-up with Anthem and Cigna;
- Informed the board of the budget workshop;
- Wrote a memo to all departments in town hall to come and speak with selectman; met with 25 people;
- Has ideas about reorganization; talked about getting help in Treasurer’s Office;
- Blight fines;
- Winterization issues;
- People living in hotels;
- Attended Dispatcher negotiations; raised the issue of joining/becoming a regional dispatch center; spoke of forming a committee; would like 1 of the members from BOF on committee perhaps to investigate;
- Regionalization of Estuary towns; may go from 9 to 17 towns;
- Re energy: going out to bid through CCM on 2/21/12; energy will be down 10-20%;
Comments from the Chair:
In connection with page 65 of the Annual Financial Report, Chairman LaMay handed out a chart of an analysis of trends that he created with regard to the net assets of the town. He noted for the board the changes and the average changes for the last 8 years.
Selectman Fortuna reported that Tax Collector, Barry Maynard created a grand list chart and noted that the revenue from the grand list was down $100K.
Mr. LaMay noted that OSPD would be attending the February 21, 2012 meeting and that questions should be operational.
Mr. Thorpe noted that he would like to see the Pledge of Allegiance said before the meeting. He also said that he would like the meetings recorded and that it would be more efficient if the clerk had a laptop.
Motion: To purchase a recorder so that the meetings could be recorded.
Moved: B. Thorpe Second: B. O’Nell
Discussion: None
Approved: 7-0
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During the discussion that followed, it was noted that the board would like to see the OSPD “actuals” to which Mr. LaMay said he would obtain.
Also the board felt that the decision as to events in the town should be made by the First Selectman/Board of Selectmen.
At this time Selectman Fortuna asked that the agenda be amended to include “executive session” for a legal matter/claim against the Town.
Motion: To amend agenda to add Executive Session for a legal matter/claim against the Town.
Moved: D. LaMay Second: G. Westerson
Discussion: None
Approved: 7-0
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Motion: To enter into Executive Session for a legal matter/claim against the Town..
Moved: D. LaMay Second: G. Westerson
Discussion: None
Approved: 7-0
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Motion: To adjourn at 9:20 p.m.
Moved: B. Thorpe Second: B. O’Nell
Discussion: None
Approved: 7-0
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Respectfully Submitted,
Gerri Lewis, Clerk
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