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HomeMy WebLinkAboutBoard of Selectmen Agenda October 19, 2011 Packet_201402061641031478Keeping the Lights On After School: A Proclamation WHEREAS, the citizens of the Town of Nantucket stand firmly committed to quality afterschool programs and opportunities because they provide challenging and engaging learning experiences that help children develop social, emotional, physical and academic skills while supporting working families, ensuring their children are safe and productive after the traditional school day ends. WHEREAS, the Town of Nantucket has provided significant leadership in the area of community involvement in the education and well-being of our youth, grounded in the principle that quality afterschool programs are key to helping our children become successful adults. WHEREAS, Lights On Afterschool, the national celebration of afterschool programs held this year on October 20, 2011, promotes the importance of quality afterschool programs in the lives of children, families and communities. WHEREAS, more than 28 million children in the U.S. have parents who work outside the home, and 15.1 million children have no place to go after school. WHEREAS, many afterschool programs across the country are facing funding shortfalls so severe that they are being forced to close their doors and turn off their lights. WHEREAS, the Town of Nantucket is committed to investing in the health and safety of all young people by providing afterschool and out-of-school time programs that will help close the achievement gap and prepare young people to compete in the global economy. WHEREAS, it is important to engage families, schools and communities in advancing the welfare of our children and ensure the lights stay on and the doors stay open for all children after school, NOW, THEREFORE, we, the Board of Selectmen of the Town of Nantucket, do hereby proclaim October 20, 2011, to be, Lights On Afterschool Day And urge all the citizens of Nantucket to take cognizance of this event and participate fittingly in its observance. Given this 19th day of October, in the year two thousand and eleven, and of the Independence of the United States of America, the two hundred and thirty-fifth. ___________________________________ ____________________________________ Rick Atherton, Chairman Whiting Willauer, Vice Chairman ___________________________________ ____________________________________ Patricia Roggeveen Michael Kopko ___________________________________ Robert DeCosta DEPARTMENT OF MUNICIPAL FINANCE TOWN OF NANTUCKET Finance Director (508) 325-7519 (508)228-7209 Operations (508) 228-7209 Town & County Building Collector (508) 228-7270 16 Broad Street Treasurer (508) 228-7265 Nantucket, MA 02554 Assessor (508) 228-7211 Accounts Payable (508) 228-7275 TO: C. Elizabeth Gibson, Town Manager FROM: Irene Larivee, Finance Director DATE: October 5, 2011 RE: Finance Department Progress - September 2011 Attached is the monthly progress report relating to: the findings and areas of concern of the FY 10 audit and management letter; the Abrahams Report recommendations implementation, and Department of Revenue report submittals. Fiscal Year 2010 Audit Management Letter The audit management letter outlines areas for improvement and identifies findings and weaknesses. The Town’s FY 10 management letter contains eight findings requiring immediate attention including implementation of internal controls; cash reconciliations; legacy account issues; enterprise funds; county reconciliations; late journal entries; enterprise fund inter fund transfers; capital borrowing and associated expenditures. Action Taken Since September 1, 2011: 1. Town Cash Reconciliations: Complete for July 31, 2011. The Treasurers Cashbook and General Ledger July 31, 2011 cash reconciliation is complete and is confirmed with Michael Daley. 2. County Cash Reconciliations: Complete for July 31, 2011. The Treasurers Cashbook and General Ledger July 31, 2011 cash reconciliation is complete and is confirmed with Michael Daley. The Management Letter also identifies other areas of concern that need to be corrected during the remainder of FY2012, including reconciling Massachusetts Highway Grants; Accounting for Trust Fund Balances; Commingling Cash Accounts of Enterprise Funds; Fraud Risk Assessment; Accounting for Off-Duty Police and Fire Details; Dental Insurance Withholding Deficit; General Ledger Maintenance and Reconciliations for Nantucket County; Receivable Reconciliations; Prepaid Expense Balance; Journal Entry Control; and County Escrow Accounts. An update on key items listed in the prior paragraph follows: 1. Enterprise Funds Cash Reconciliation – Complete. Wannacomet Water and Airport have both confirmed agreement with the Treasurers Cashbook as of July 31, 2011. 2. Accounting for Trust Fund Balances – Complete. The reconciliation of the trust fund balances for July 31, 2011 is complete. The physical cash transfers to tie the Treasurers Cashbook to the General Ledger were completed August 31, 2011. This is confirmed with Michael Daley. 3. Receivable Reconciliations – Incomplete. The receivable reconciliations for July 31, 2011 have not been completed at this time. The reason why is this position tasked with this Page 2 of 3 responsibility is currently vacant and the team is actively recruiting a replacement. In addition, the remaining staff was focused on completing the combining balance sheet; tax recap; and providing the final trial balance to the Auditors for the FY2011 audit. 4. Enterprise Fund Inter-fund Transfers – Complete for July 31, 2011. This is confirmed with Michael Daley. 5. Late Journal Entries – Complete. The Town general ledger was closed 9/30/11; the County general ledger was closed 8/15/11. 6. Submit Final Trial Balance to Auditors – Complete. Department of Revenue Schedule The Massachusetts Department of Revenue provides a schedule of tasks with an associated timeline for all municipalities in the Commonwealth. Action Taken Since September 1, 2011: 1. Jointly Submit Community Preservation Surcharge Report – Complete. 2. Submit Combined Balance Sheet and Free Cash Submission – Complete. 3. Jointly Submit End of Year Report to DOE - Incomplete. The school was able to receive a two week extension on the submission of this report. The new deadline is October 14, 2011. The teams focus was on delivering three key initiatives that were due in the same time frame. The items include submitting the combining balance sheet to the Department of Revenue; finalizing the tax recap; and the 2011 Audit reports. 4. Submit Snow & Ice Report – Complete. 5. Submit Statement of Indebtedness – Complete. 6. Submit 4th Quarter Reconciliation of Cash for Previous Year – Complete. Abrahams Implementation Plan In 2008, the Town contracted with the Abrahams Group to provide an organizational review of the Finance Department. Within the report were thirty-six recommendations to improve the organizational structure of the department. As of September 30, 2011; twenty-one or 58.3% of the recommendations have been implemented; with an additional ten or 27.78% in progress. What about the remaining 5? Action Taken Since September 1, 2011: 1. Recommendation #16: Decentralize cash receipt entry. Complete. 2. Recommendation #5c: Close Town Clerk’s bank account and make all vendor payments through warrant process. In progress. The expected timeline for completion is October 31, 2011. 3. Recommendation #6: Submittal of Cash Register Tapes for Significant Cash Turnovers. In progress. This recommendation has been completed with the school lunch program. The staff has requested additional clarification from the Abrahams Group as school lunch is the only program with cash register tapes. Page 3 of 3 4. Recommendation #10: Appropriate Written Authority and Understanding of Collective Bargaining Agreements. In progress. The payroll department now receives a copy of the signed Memorandum of Understanding for union contracts. Human Resources has drafted the written internal process for review. 5. Recommendation #19: Report all balances on MLCs to assure sound practice and to protect the town’s right to collect the money. In progress. The Finance staff has requested the Abrahams Group to reconsider this recommendation. At the present time, all known balances by the collectors office are recorded on the MLC. The only area that doesn’t have a specific balance stated on the MLC pertains to Wannacomet / Siasconset Water. The MLC has a notation to contact Wannacomet / Siasconset Water to obtain the final balance due. 6. Recommendation #24: Timely submittal of reimbursements for loan drawdowns. In progress. The timeliness of Massachusetts Water Pollution Abatement Trust (MWPAT) and 3-C Transportation Grant drawdowns has been resolved. The area still under review is Chapter 90 reimbursement requests to the State. Within the next two months, the Finance Director and Public Works Director plan to develop a Chapter 90 Reimbursement policy to address the timeliness of drawdowns going forward. 7. Recommendation #25: Tailings Process. In progress. We began the tailings process in 2009. The letters have been sent to the respective parties to inform them the Town has funds in their name that haven’t been cashed. The task that needs to be completed is to document an internal process as to the steps involved in tailings and responsible parties. 8. Recommendation #29 and #30: Restructure School Chart of Accounts. In progress. Full implementation scheduled for December 31, 2011. 9. Recommendation #31: Document Financial Polices and Procedures. Partially Complete. The Board of Selectmen adopted seven financial policies on September 14, 2011. Internal documentation of processes will continue through 2012 and 2013. If you have any questions or concerns regarding our progress to date or future deadlines, please don’t hesitate to let us know. Combined Status of Management Letter, Abrahams Implementation, and Department of Revenue ScheduleSeptember 30, 2011Rec. #Fundamental Purpose/ObjectiveDate DueAccomplishedCommentResponsible for Performing Task's) Responsible for Follow UpPartially AccomplishedNot AccomplishedDOR Schedule17Jointly Submit Community Preservation Surcharge ReportAccountant / AssessorFinance Director 9/15/2011√Submitted August 3, 2011Management Letter1b. Cash ReconciliationsTreasurer / Assistant Treasurer / Town Accountant / Accounting Clerk Finance Director 9/15/2011√County Complete; Town Treasurers Cashbook Complete; Need Controllers JE'sManagement Letter9General Ledger Maintenance and Reconciliations for CountyAssistant Finance Director / Town Accountant Finance Director 9/15/2011√CompleteManagement Letter10Receivable ReconciliationsStaff Accountant / Town Accountant / OIH Administrator / DPW Acting Director Finance Director 9/15/2011√Not CompleteManagement Letter1g. Enterprise Fund Inter-fund TransfersTown Accountant / Assistant Finance Director Finance Director 9/15/2011√DOR Schedule Submit Combined Balance Sheet; Free Cash Submission Town Accountant Finance Director 9/15/2011√Revision submitted 9/24/11Management Letter1d. Enterprise FundsTreasurer / Airport Accountant / Water AccountantFinance Director / Airport Manager / Water Manager 9/30/2011√Management Letter1f. Late Journal EntriesTown Accountant / Finance Operations Coordinator Finance Director 9/30/2011√All YE JE's to be complete by 09/30/11DOR Schedule18Compensating Balance Report Treasurer / Collector Finance Director 9/30/2011 N/ANot applicable per Collector & TreasurerDOR Schedule19Jointly Submit End of Year Report to DOEAccountant / School Committee Finance Director 9/30/2011√Delayed 2 weeks - Due 10/14/11DOR Schedule20Submit Snow & Ice Report Town Accountant Finance Director 9/30/2011√DOR Schedule22Statement of Indebtedness Treasurer Finance Director 9/30/2011√DOR Schedule214th Quarter Reconciliation of Cash for Previous Fiscal Year Treasurer Finance Director 9/30/2011√Management Letter Submit Final Town Trial Balance to AuditorsTown Accountant / Finance Director Finance Director9/30/2011√Management Letter3Accounting for Trust Fund Balances Town Accountant / Treasurer Finance Director 9/30/2011√Remaining transfers occuring in September 2011.Management Letter12Commingling of Federal and State GrantsTown Accountant / Finance Operations Coordinator Finance Director 10/15/2011√New Accounts set up; need to transfer fund balance when final trial balance complete 9/30/11Management Letter1b. Cash ReconciliationsTreasurer / Assistant Treasurer / Town Accountant / Accounting Clerk Finance Director 10/20/2011√Management Letter9General Ledger Maintenance and Reconciliations for CountyAssistant Finance Director / Town Accountant Finance Director 10/20/2011Management Letter10Receivable ReconciliationsStaff Accountant / Town Accountant / OIH Administrator / DPW Acting Director Finance Director 10/20/2011√Management Letter1g. Enterprise Fund Inter-fund TransfersTown Accountant / Assistant Finance Director Finance Director 10/20/2011√DOR Schedule24Mail Semi-Annual Tax Bills Collector Finance Director 10/1/2011√DOR Schedule27Submit School Foundation Enrollment Report to DOE SuperintendentSchool Committee 10/15/2011Management Letter1d. Enterprise FundsTreasurer / Airport Accountant / Water AccountantFinance Director / Airport Manager / Water Manager 10/31/2011√DOR Schedule28Submit Schedule A for Prior Fiscal YearTown Accountant Finance Director 10/31/2011√DOR Schedule29Begin Establishing Next Fiscal Year Budget Guidelines and Request Department Budgets Board of Selectmen Town Manager 10/31/2011√10/5/2011