Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Management Policy topic
No spam. Unsubscribe anytime.
Town treasurer gives quarterly financial briefing; select board directs staff to revise financial management policy
Summary
Town Treasurer Lynn Trappanese presented an unaudited fiscal-year‑end review, cash‑flow projections and reserve balances; the board agreed to revise the 9‑year‑old Financial Management and Investment Policy and asked Town Manager Shannon and the treasurer to produce redlines for the Oct. 7 meeting rather than form an outside ad hoc committee.
Town Treasurer and Tax Collector Lynn Trappanese presented the board with a comprehensive, quarterly financial briefing on Sept. 16 that covered bank balances, capital reserve funds, cash‑flow projections and undesignated fund balance calculations for the fiscal year ending June 30, 2025.
Trappanese cautioned that the fiscal year end figures are unaudited and subject to adjustment. “The fiscal year end June 2025 is not audited yet,” she told the board, and she explained that the town’s accounting system books the real‑estate tax commitment as a single lump sum, which required her to extrapolate receipts across months for a clearer cash‑flow picture.
Her materials showed two operating sweep accounts, two Winthrop Federal Credit Union accounts earmarked for the fire truck and the Ladd Recreation Center, and 14 capital reserve funds. Trappanese highlighted the road construction reserve (ending balance shown as $469,492.46) and explained that monies approved at town meeting have not all yet been reallocated in the accounting system.
She presented three methods for calculating an appropriate undesignated fund balance, citing the town’s policy, guidance from the Maine Municipal Association (MMA) and the Government Finance Officers Association (GFOA). Trappanese said the town’s current practice does not match every recommended calculation and noted there are no statutory penalties for falling short of any specific guideline, but that the board should consider policy adjustments.
After the briefing, the board moved to discuss revisions to the town’s Financial Management and Investment Policy, a 21‑page document included in the packet. The chair said some policy provisions — including the classification of “special revenue” or “special reserve” funds and oversight steps such as select board review of monthly reconciliations — appear inconsistent with current practice and may not align with applicable law.
Board members debated whether to form an outside ad hoc advisory committee. The board agreed instead to ask the town manager and the treasurer to review the policy, prepare highlighted changes in redline format where appropriate, and present recommended revisions at the next regular meeting on Oct. 7. The treasurer and manager will involve staff as needed; the board did not vote to form any external subgroup at this time.
The board also discussed separating computer‑system and records‑retention requirements from the financial policy and placing them in a distinct IT/records policy, and they directed staff to ensure the policy’s fund classifications follow state guidance.
