August 7, 2023 Selectboard Finance Committee Regular Meeting Minutes

OFFICE OF THE SELECTBOARD

Finance Committee

TOWN OF HALIFAX, VERMONT

SPECIAL MEETING AGENDA

August 7, 2023

10:00AM AT THE HALIFAX TOWN OFFICE

CALL TO ORDER

Patrick McAllister called meeting to order at 10:05 am. Selectboard members present were Karen Christofferson; Pete Silverberg entered the room at 11:45am for Town business unrelated to the Finance Committee and did not participate in the meeting. Other people present in person or remote were Town Treasurer Patty Dow (“Treasurer”).

CHANGES AND ADDITIONS TO THE AGENDA

  • None

NEW BUSINESS

Preliminary Review of FY23 Financial Statements and results vs budget

Note: At the request of Christofferson, the Treasurer distributed Financial Statements (Profit and Loss, Balance Sheet and Statement of Cash Flows as generated by Quickbooks) at the beginning of the meeting. Only the draft Profit and Loss had been previously provided.

  • McAllister stated that the general idea for the financial statements is to get all the town financial information into one place.
  • Christofferson further noted the need to provide “walk forwards” for key items from FY2022 to FY2023
  • McAllisterand Christofferson discussed topics to review with Treasurer.
  • The Town Treasurer was invited to join the meeting at 11:01am
  • Topics reviewed and discussed with Treasurer:
    • Fund balances:
      • Fiduciary funds (managed by trustees of public funds) – Eames, Cael, Wicks Cemetery only appear in town P&L statements when income is received by the town. End of period Fund activity and Fund balances only appear in the individual Trustee of Public Funds reports which are not the responsibility of the Treasurer.
      • McAllister noted that each of the Fiduciary Funds has its own brokerage account rather than a separate town owned bank account. A discussion ensued with the understanding that the individual Trustees of Public Funds would need to provide specific information to the Treasurer for inclusion in the town financial reports.  The Town’s public auditor prepared  this information for inclusion in the FY2022 audited financial statements.
      • Thirteen “Non-major” funds are managed by town[1]
    • Interest income and dividends received by the Town from the Funds goes into the General Fund of the town because they have brokerage rather than town owned checking accounts.
    • A report header labelling difference was noted between Cash and Accrual basis on the Quickbook generated P&L and Balance sheets.
      • Treasurer noted that the Quickbooks reporting can be designated as either Cash or Accrual basis
      • Treasurer to re-print Balance Sheet and Statement of Cash flows in Accrual mode. The P&L was already labelled as Accrual basis.
    • Treasurer will try to generate a Quickbooks report showing cash details for beginning and end of period.
    • Treasurer noted that the biggest cash component is the Grants account. Treasurer will provide cash component analysis with the various Grants accounts
    • Treasurer noted that in response to public auditor suggestion, classifications (aka “Classes”) have been established in Quickbooks.  Treasurer has not yet used them for reporting purposes pending getting further into the current fiscal year
    • Capital Assets and Depreciation – Land, Trucks, Infrastructure
      • These items are dependent upon adjusting and accrual entries
    • 11:12am Treasurer left the meeting to respond to a Town Hall visitor
    • McAllister and Christofferson discussed their interest in replicating Note 5 from FY22 audit with FY23 information. A further discussion ensued regarding:
      • Difference between P&L and Budget surplus
      • Delinquent tax, Independently funded items
      • Reiterated the need to find a way to bring all items together in financial statements
      • Funds – articles
      • McAllister and Christofferson discussed their interest in replicating schedules 6,7,8,9 from FY22 audit with FY23 information
    • 11:27am Treasurer rejoined the meeting
      • End of Period Cash position looks high at $617,892.64
        • Treasurer noted the opening period cash position was $511,382.85
      • Separately funded budget (Treasurer) not included in xls budget performance spreadsheet which includes separate tabs for Highway and Selectboard budgets.  Surplus/ deficits for Highway and Selectboard flow through to General Account
      • Status to finalizing Financial Statements – Date?
        • FY2023 Financial Statements are still subject to adjusting entries
        • Christofferon recalled the last accruals in Quickbooks were completed for June 30, 2022 in April 2024 by the Town’s Quickbooks contractor using the Adjusting Entry schedule provided for the Audited FY22 financial statements. Treasurer confirmed.  Treasurer will discuss the completion and timing of accrual entries for FY23 with Town’s Quickbook contractor.
      • Self funded accounts
      • Balances on Balance sheet
      • Walk forward from FY 22 budget to FY ended June 30, 2023
      • Need to replicate Audited Financial Statement Schedule 3 – Budget vs. actual with FY23 information
      • Next steps for Treasurer:
        • Conversation with Town’s Quickbooks contractor regarding the timing to complete accrual entries for FY23 and FY24 on an ongoing basis
        • Reprint balance sheet and cash flow statement according to accrual basis
        • Print “Classes” – starting with Grants Accounts
        • Amend xls Highway & Selectboard budget spreadsheet to include Non-Budget items
          • Christofferson to advise Treasurer in amending xls spreadsheet with the goal of expanding materials provided at Town Meeting materials.
        • Next steps for Finance Committee:
          • Review Quickbooks FY23 and FY24 accruals, as completed, for Walk Forward for key line items

OTHER BUSINESS

  • None

HEARING OF VISITORS

  • None

ADJOURNMENT

Patrick McAllister adjourned the meeting with thanks to the Town Treasurer for her collaboration at 12:05 pm.

[1] The Non-major funds identified on page 7 of the FY2022 Audited Financial Statements are: Halifax Celebration Fund; Scott & Eames Fund; VT Emergency Management Fund; Resurfacing Fund; Cemetery; Bridge Fund; Office Equipment; New Town Garage Fund; Reappraiser & Lister Fund; Equipment Fund; Municipal Planning Grant Fund;

Niles Cemetery Fund; and Records Restoration Fund.

 

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