Board and budget committee clarify ARPA accounting and reconcile budget figures

Select Board and the budget committee spent a substantial portion of the meeting clarifying how American Rescue Plan Act (ARPA) and other one-time federal funds are handled in Brentwood’s accounting and resolving a publicized figure that suggested warrant article overexpenditure.

The budget committee chair outlined two acceptable approaches: either appropriate the full ARPA-funded amount in the operating budget and record revenue when it is received, or record the funds as deferred revenue and offset expenditures in the general fund as they occur. The board cited guidance from the New Hampshire Municipal Association and agreed both methods are used; the chair recommended the deferred-revenue/general-fund approach for one-time projects such as a pickleball court or amphitheater.

A handout circulated at the budget hearing showed a figure—$816,464—that had been interpreted by some as evidence the town overexpended a warrant article. The budget chair and town administrator explained the number likely reflected unreconciled entries, a capital-reserve accounting timing issue and journal entries that remained to be posted. The town administrator acknowledged outstanding journal entries and said audits and reconciliations were in progress.

Board members asked detailed line-item questions (software support, health insurance, PD equipment, highway encumbrances). In response, the town administrator said she will complete reconciliations and the board agreed to receive monthly budget-versus-expended reports going forward so members can monitor lines incrementally rather than at year-end.

No formal budget adjustments were approved at the meeting; the exchanges focused on clarifying accounting methods, reconciling preliminary numbers, and improving ongoing reporting to the Select Board.