Free Cash Expected Early 2016
Eryn Dion
News Staff Writer
TEMPLETON The town’s long-delayed free cash allotment could be certified early next year, according to interim Town Administrator Bob Markel who, along with Town Accountant Kelli Pontbriand, gave the Board of Selectmen an update on the town’s financial outlook Monday night.
“It’s going to take a little longer than I thought,” said Ms. Pontbriand. “I hoped for the end of the summer.”
Earlier this year, the state Department of Revenue told town officials that it would withhold the entire free cash amount — estimated at $750,000 — until the town could provide audits from fiscal 2013 and 2014.
At about the same time, officials were also told by the auditing firm that audits of those two years could not be completed because the records were in such disarray and the books would need to be completely reconstructed before work could proceed.
The DOR has since dropped its audit request and is instead asking only for balance sheets from the two years in question as a requirement to certify free cash. However, the producing of the balance sheets will still take much of the year.
“Fiscal 2013, I’m hoping to have done by the first part of October,” Ms. Pontbriand told selectmen. “I’ve discovered way more issues than I originally anticipated.”
Mr. Markel said the financial team has discovered mistakes dating as far back as fiscal 2001, with Ms. Pontbriand adding that many of the issues can be traced back to the town’s switchover to VADAR financial software.
“A lot of it is dealing with the tying between city and town (accounting software) and what was actually put into VADAR,” the accountant explained. “I’ve actually found accounts that were never put into VADAR and I’m making sure I’ve got all those covered.”
Once fiscal 2013 is sorted, Ms. Pontbriand said fiscal 2014 should go quickly for submission to the revenue department.
“Hopefully I’ll have good balances to go with it and it won’t take long to get that started,” she said.
With free cash likely coming in next year at the earliest, the amount will be entirely off the table for the fall meeting and any planned capital purchases pushed back until the spring.
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ReplyDeleteWe were told By Bob Markel a short term loan against the free cash could be had to purchase the used excavator and repayed when the money is released.
ReplyDeleteI really hope that Mr. Markel is not advocating a short term loan for this purpose. As a town, we should be making good financial decisions and working toward restoration of our bond rating. This would be a bad example of financial responsibility.
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ReplyDeletewhy is everybody hung up on a excavator when you can not use it in the winter why not a back hoe the you can use 12 months a year ! an excavator is a luxury item !!!
Ask the selectmen mike and if you went to the meeting you would know they oked the purchase of a new to us unit.
ReplyDeleteNo back hoe needed and when the town has two why have three?