More on Tax Re-Cap

More on Re-Cap

Everyone,

I had the chance to read the Gardner News article regarding Templeton's 500k deficit and I think it is important to correct some misinformation.  First, the switch over of software between City & Town and VADAR has absolutely nothing to do with the recap and setting the tax rate.  Second, the closing of FY 13 also has absolutely nothing to do with recap and setting the tax rate except the certification of Free Cash which we now know was used to "fix" the tax rate for at least the last 11 years.  Third, the Treasurer's Cash Book does not affect the recap. 

For years the Town Accountant was in control of preparing the budget (including FY13) and part of the FY13 budget and as you might remember FEMA funds were used and when the FY13 recap was prepared we could not move forward as the FEMA funds were from a prior fiscal year so could not be used.  This forced a town meeting to rescind votes and left the town scrambling to set a tax rate. 

The "model" (spreadsheet) used for preparing the budget was the Accountant's creation. FY14 was the first time the budget forecast was prepared by someone else using this "model".  There were no instructions on how to use the "model" and as a result some information was not included on the budget projection.  If all of the information had been included in the forecast this problem would have been discovered early into the process and the appropriate action would have been addressed then, and not when the recap was prepared which is where we are now.

The recap is a collaborative effort between the Assessors, Treasurer, Town Clerk and the Accountant.  Everyone involved is responsible for certain parts of the recap however we discovered last year that not everyone is aware of their responsibility.  One example is that in FY13 the Town Clerk was not aware that it was her responsibility to prepare Page 4 of the recap with all town meeting appropriations.  The reason is that for prior recaps the Accountant prepared Page 4 and either had her sign (his work) or used her log on to sign.  For the FY14 recap the Town Clerk has received training and made her first attempt at Page 4.  There were some minor adjustments, but it was a good first attempt.  Another example.........after a brief conversation with Sue Byrne at Friday's meeting the overlay number was larger than necessary on the FY14 recap as it was on prior recaps.  This would create excess overlay which would be used for revaluation per the Accountant's instruction.  This also affected the tax levy as those funds need to be raised.  These practices may not be illegal but they do have the perception of being deceptive or at the very least "creative" and not something which I am familiar or comfortable with.

The bottom line is that things need to change dramatically in order to avoid these issues in the future.  Everyone needs to work together and have input when appropriate.

Thanks

Fred Aponte

Accounting