WEBSTER – The state Department of Revenue recently certified the town’s “free cash” amount as of July 2016, and the negative $4.1 million picture isn’t pretty.

A large portion of the negative value of free cash was because of not borrowing money for the Park Avenue Elementary School project when the funds, made available through a previous town meeting, should have been borrowed, said Town Administrator Douglas C. Willardson, who inherited the financial problem when he began the job in December.

Fortunately, a remedy was fairly simple, according to Mr. Willardson, who in the meantime has called for an independent financial review of the town’s financial picture.

This issue was resolved last week when the Board of Selectmen authorized town Treasurer James Chauvin to sign bond anticipation notes. That action, Mr. Willardson said, “made us whole.”

Mr. Willardson attempted to downplay the issue, but acknowledged during an interview, “that’s a big number,” and later noted, “Negative $4 million is a scary number.”

Fiscal 2016 free cash was impacted by the delay in certification of fiscal 2015 free cash, which was finally certified in late March. It was negative $3 million.

Meanwhile, a full financial audit of the town’s finances is expected to be completed by the end of June.

Mr. Willardson said he asked the DOR to conduct a financial management review of the town, and one of its recommendations was to oust the town’s longstanding auditor.

“As part of our review, we will recommend that the Town of Webster strongly consider engaging a new outside audit firm,” said an email to Mr. Willardson from the DOR’s Zack Blake. “Webster has contracted with the same accounting firm, Borgatti Harrison & Co., to conduct its annual audit since 2007. While staying with one auditor over multiple years provides continuity, we agree with the (Government Finance Officers Assocation’s) advice that communities change outside auditors every five to eight years because cycling new auditors provides fresh perspective and fosters greater independence.”

The DOR official said he would also provide the town in the coming weeks other recommendations, including those on debt, cash flow, outstanding receivables, reconciliations, deficits, purchasing, retirement system fees, and state School Building Authority reimbursements.

Town Accountant Pamela A. Leduc submitted a free cash amount to the state in March 2015, but the DOR did not certify it. Ms. Leduc had served as acting town administrator for more than a year until Mr. Willardson was hired as permanent administrator. She has said that she took on too much responsibility during her year-plus leading the town.

Some members of the Board of Selectmen last year cited concerns about free cash as the reason they couldn’t support Ms. Leduc’s candidacy for permanent town administrator.

Andrew Jolda, chairman of the Board of Selectmen, said in an email, “Going forward, the Board of Selectmen will be reviewing the financial policies that are currently being developed by the Town Administrator and members of the Finance Committee.”

Mr. Willardson said he asked the DOR to conduct a financial management review of the town, and one of its recommendations was to oust the town’s longstanding auditor.

“As part of our review, we will recommend that the Town of Webster strongly consider engaging a new outside audit firm,” said an email to Mr. Willardson from the DOR’s Zack Blake. “Webster has contracted with the same accounting firm, Borgatti Harrison & Co., to conduct its annual audit since 2007. While staying with one auditor over multiple years provides continuity, we agree with the (Government Finance Officers Assocation’s) advice that communities change outside auditors every five to eight years because cycling new auditors provides fresh perspective and fosters greater independence.”

The DOR official said he would also provide the town in the coming weeks other recommendations, including those on debt, cash flow, outstanding receivables, reconciliations, deficits, purchasing, retirement system fees, and state School Building Authority reimbursements.

Town Accountant Pamela A. Leduc submitted a free cash amount to the state in March 2015, but the DOR did not certify it. Ms. Leduc had served as acting town administrator for more than a year until Mr. Willardson was hired as permanent administrator. She has said that she took on too much responsibility during her year-plus leading the town.

Some members of the Board of Selectmen last year cited concerns about free cash as the reason they couldn’t support Ms. Leduc’s candidacy for permanent town administrator.

Andrew Jolda, chairman of the Board of Selectmen, said in an email, “Going forward, the Board of Selectmen will be reviewing the financial policies that are currently being developed by the Town Administrator and members of the Finance Committee.”





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 So how do these financial messes happen to community after community?