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New Village Treasurer Urges Purchase-orders, Reserves and Monthly Reporting
Summary
Brian McDonald, the village’s newly appointed treasurer, presented a month-long review that found weaknesses in procurement and year-end accounting and recommended a requisition/purchase-order process, creation of a reserve fund (suggested cap 10%) and monthly reporting to improve transparency.
Brian McDonald, serving 30 days as Montgomery’s village treasurer, told the board on June 2 that the village’s purchasing, procurement and fiscal-year accounting need clearer controls.
McDonald said current practice often has the village accept goods or services before board approval, leaving trustees in the position of paying after the fact and exposing the village to financial and legal risk. He recommended a formalized requisition and purchase-order system: departments would submit requisitions, department heads would confirm need, the treasurer would verify available funds and then issue purchase orders prior to purchases. When goods arrive, someone other than the original requestor should confirm receipt, McDonald said, to prevent conflicts of interest.
On reserves and capital planning, McDonald recommended creating a dedicated reserve account to track year-end surpluses and suggested a notional cap (he used 10% of the budget as an example) with excess moved back into future budgets to offset taxes. He also said beginning with FY2028 he plans to include dedicated capital reserve lines to fund equipment replacement and infrastructure projects.
McDonald’s other proposals included improved separation of funds by fiscal year, clearer monthly reporting to the board and the public, and stronger documentation around the Annual Financial Report (AFR) filing. He told trustees he sees the role of treasurer expanding to provide the board timelier visibility into spending so policy decisions are better informed.
What the board asked: Trustees pressed how changes would be implemented and whether the board’s role was being increased from reactive to proactive. McDonald noted some recommendations respond to state internal-controls guidance and village procurement policy and said they could be phased in with minimal immediate cost.
Next steps: The board directed the treasurer to produce monthly financial reports and to present follow-up recommendations at upcoming finance workshops. No formal ordinance was enacted at the meeting; McDonald’s recommendations will be considered for operational adoption and agenda items at future meetings.
