State Drops Free Cash Roadblock
DOR will accept balance sheets over full audits
Eryn Dion
News Staff Writer
TEMPLETON At least one hurdle standing between the town and free cash certification has been removed as, according to interim Town Administrator Bob Markel, the state Department of Revenue has dropped the requirement that the town submit three years worth of financial audits before signing off on the allotted amount.
“We were told that (the DOR) will not insist on having audits of fiscal 2013, 2014 and 2015 before they’re willing and able to certify free cash,” Mr. Markel told selectmen Monday night.
“Instead, if our town accountant is able to submit a balance sheet for those years, they will accept the balance sheet for each year as sufficient info,” he said.
In March, town officials learned the DOR would withhold a free cash amount estimated at $750,000 until the town could provide audits from fiscal 2013 and 2014. Complicating the process, the town was also told by auditors that the financial records from those years were in such disarray that work could not proceed until they were reconstructed. The work would take an estimated 750 to 1,000 hours to complete, and Town Accountant Kelli Pontbriand has been working at 40 hours per week to finish reconstructing the records by the end of the calendar year.
By requiring only balance sheets the process will be expedited slightly, although Mr. Markel was uncertain whether free cash would be certified in time for the special Town Meeting generally held in the fall.
“As soon as Kelli can finish the work on (fiscal) 2013 and (fiscal) 2014 and give us balance sheets, we can go to the DOR and ask for free cash certification,” Mr. Markel stated.
Mr. Markel said the revenue department’s change of heart was a good sign, especially compared to previous years when tax recap sheets were submitted late or the state only certified a partial amount due to lingering questions over the validity of data provided.
“I think that they have confidence that the financial management from that office is greatly improved,” he said.
In order to have funds for the fall meeting, Mr. Markel said selectmen could potentially push the date back until the end of October or beginning of November, keeping in mind that the financial management team would still need sufficient time to complete the fiscal 2015 recap sheet to have the fiscal 2016 tax rate set by the end of December.
I can't help but think that the Town has been in this financial mess due to the fact that just maybe the DOR did not do their job when previous administrations were in power. How were the budgets balanced then ?? With what money, and from what accounts ? Found money will carry us through this year, but how will we get through the next year, and the years after that ?? Money that Kelli has used this year will have to be raised next year, unless we don't have money in the bank to cover the additional costs. Just because we have a dollar in the jar, does not mean we have to spend it. I am very surprised that there was any money left anywhere. Bubba and Company must have slipped up when any money was left behind. I want to say Kelli is doing a good job. Bev
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