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Trustees outline tighter procedures after inventory finds gaps in trust fund records
Summary
The trustees of the trust funds told the Allenstown Select Board they will tighten procedures for disbursements, require warrant‑article documentation, and transition to new custodial arrangements after discovering missing or inconsistent historic verification records.
The trustees of Allenstown’s trust funds briefed the Select Board on June 29 about statutory distinctions among expendable trust funds, capital reserve funds and revolving funds and said they will require additional documentation for any future disbursement requests.
A trustee explained that expendable trust funds and capital reserve funds are governed by specific RSA provisions and that revolving funds are distinct (funded by fees and charges derived from the activities they support). The trustees said they have identified gaps in their records — missing warrant‑article documentation and incomplete dates for many legacy funds — and are updating procedures to prevent unauthorized or non‑compliant expenditures.
The trustees described several near‑term changes: requesters must provide minutes or ballot evidence showing the warrant article that established a fund; the trustees will not process reimbursement requests that lack the required historic documentation; and they plan to add guidance and RSA links to the trustees’ web page. The trustees also said they intend to change custodial arrangements and work with a new wealth manager to create individual capital‑reserve accounts for clarity and auditability.
Trustees provided preliminary fund‑balance figures and noted a projected decline in overall balances (the transcript references a year‑to‑year decline and several account balances, with trustees warning that many capital reserve funds remain underfunded relative to future needs). They urged boards and departments to coordinate early with trustees and the budget committee so that investment planning matches anticipated capital requirements.
The trustees said they will meet with department heads and the budget committee during budget season and will provide clearer documentation requirements to any board that requests disbursements. The Select Board thanked the trustees and asked staff to circulate the trustees’ updated verification checklist and the list of funds with missing warrant‑article records.
The trustees’ presentation did not propose any immediate disbursements; it focused on strengthening fiduciary controls and improving public transparency.
