Audit Report Finds Town In Good Financial Standing

Audit Report Finds Town In Good Financial Standing

Eryn Dion
News Staff Writer

Phillipston  The town is in strong financial standing, according to a recently released audit report by Roselli, Clark & Associates and presented to selectmen this week, although there are several areas where improvements could still be made.

The report covers data and findings from fiscal 2014, when the town ended the fiscal year with an unassigned fund balance of $548,025, or 16.2 percent of the total general fund expenditures. This number has been consistent over the last several years and Tony Roselli, a partner at the auditing firm, said in his management letter this was a positive sign for the town.

“This is considered ‘very strong’ when assessing this portion of the town’s credit profile and we applaud management’s efforts in this area,” he wrote.

Several weaknesses in the treasurer’s office pertaining to cash and bank reconciliations from prior years have been corrected with the appointment of a new treasurer, the report states, and required forms are being submitted to the Department of Revenue on time.

“The town worked diligently to solve the problems created in fiscal 2013 and we commend the team for completing their goal,” Mr. Roselli wrote.

The report also came with several recommendations on how to further strengthen the town’s financial position, including paying the assessment owed to the Worcester County Regional Retirement system in a lump sum on July 1 to take advantage of incentives offered by the program. The auditors also suggested the town turn over any outstanding checks issued to taxpayers for refunds, employees or vendors that have gone unclaimed for more than a year over to the state, as those funds can be returned to the town’s treasurer and ultimately become free cash.

In looking at the tax collector’s office, the report found that tax-collecting activity has decreased over the last several years. In fiscal 2014, almost 5 percent of the total allowable levy went uncollected.

“These are levels that are approaching unacceptable amounts, which is causing a disproportionate level of commitment from conforming payers,” the report states.

Enforcement activity has also dropped, with only $50 of the $10,000 budgeted for pursuing delinquent tax titles expended that year. To remedy the issue, Mr. Roselli recommended the town explore selling its delinquent tax titles at auction, a process from which other municipalities have experienced “enormous success.”

Rhonda Whitney, administrative assistant to the Board of Selectmen, said many of the changes and suggestions offered by the auditors are already underway, particularly in the treasurer and tax collector’s offices.