Torrington Board of Finance approves FY2025 budget transfer, reviews city performance reports

The Torrington Board of Finance approved a budget transfer for fiscal year 2025 and reviewed city performance reports at its May 20, 2025 meeting, with the board voting to approve the transfer after a motion by Mr. Bayes and a second from Mr. Wright.

The vote followed a short presentation referencing the Manager of Budget's letter dated May 13, 2025, which described the requested transfers. Comptroller Olivia told the board that encumbrances recorded in the reports are generated from purchase orders and therefore represent expenses the city expects to incur but has not yet paid. "No, all of your spot on — all of the encumbrances are generated from a purchase order," Olivia said during the discussion.

Why it matters: the transfers and the performance reports shape how the city closes FY2025 and what carries forward into the next fiscal year. Board members pressed for clarity about known revenues and potential shortfalls, and staff outlined steps to finalize year-end accounting and begin the annual audit.

Key details and context - The board approved the budget transfer described in the Manager of Budget's letter dated 05/13/2025; Mr. Bayes moved the motion and Mr. Wright seconded it. The chair called the motion and it carried. - Board members asked about encumbrances and whether payments from the state or other revenues expected before mid‑June would affect year‑end results. Olivia said some state payments usually arrive by mid‑June and revenues that arrive within 60 days can still be recorded for the year; amounts arriving after that would be recorded as prior‑period revenue. - The board was told that the purchasing agent issues a memo stopping all routine purchases as of June 6; only declared emergencies would be processed after that date. - Staff described early work to begin the audit, including planning meetings and preliminary testing (pension/OPEB valuation-based testing). The board praised the recent Deputy Comptroller/Budget Manager Erica for work expediting budget development and audit readiness.

Discussion versus formal action - Discussion: Board members asked for clarifications about encumbrances, the timing of state payments, and the effect of expected invoices (for example, health insurance prepaids and HSA contributions) on year‑end results. - Formal action: The board approved the FY2025 budget transfer described in the Manager of Budget's May 13, 2025 letter, and later approved the city performance reports through April 30, 2025.

Ending note: Officials said they expect to finish year‑end work in the coming weeks and to coordinate with auditors already conducting preliminary testing.