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Advisory committee recommends Select Board explore bonding town accountant after IRS assessment waived
Summary
After discussion of a waived $65,000 IRS assessment tied to payroll withholding mistakes, the Templeton Advisory Committee voted to recommend the Select Board explore bonding the town accountant and other officials who handle funds.
The Templeton Advisory Committee voted to recommend the Select Board explore purchasing fidelity (employee dishonesty) bonds for the town accountant and other officials who handle town funds after committee members raised concerns following a previously assessed IRS penalty.
A committee member recounted that the Town initially faced a $65,000 IRS assessment related to salary and withholding errors; the town later secured a letter and the penalty was waived. The committee noted that the town accountant had not been bonded at the time of that assessment and said bonding is a relatively low-cost protection in many communities.
A motion to recommend that the Select Board investigate bonding the town accountant and other officials passed by roll call. The committee agreed to collaborate on drafting a short letter recommending the Select Board undertake an evaluation of which positions should be bonded and report back to advisory.
Why this matters: Committee members said a bond could have shifted immediate liability to a bonding company and preserved town funds while permitting the bond issuer to pursue recovery from any responsible employee. Members said bonding costs can vary but, for some towns, may be only a few hundred dollars per position.
The advisory committee directed staff to prepare a recommendation letter for the Select Board and to work with staff to identify positions that handle cash or disbursements for consideration.
