OFFICE OF THE SELECTBOARD
Finance Committee
TOWN OF HALIFAX, VERMONT
MINUTES OF THE SPECIAL MEETING AGENDA
15 November 2023
CALL TO ORDER
- McAllister called the meeting to order at 6:30 pm
- Patrick McAllister and Karen Christofferson, Finance Committee members present
- Jessica Bruno, Quickbooks Consultant also present
CHANGES AND ADDITIONS TO THE AGENDA
APPROVAL PREVIOUS MEETING MINUTES
Approved 25 September 2023 minutes with no changes
OLD BUSINESS
The Finance Committee continued its review of FY23 Financial Statements with support from Jessica Bruno on the journal entry adjustments (“AJE”). Bruno was not able to make all necessary AJE’s because the accounts and rationale for entries prepared by the CPA for the FY2022 Audited Statements are not available to Bruno.
Bruno noted that the budget comparison reporting typically prepared by the Town’s Treasurer is not in Quickbooks style and suggested the financial statements going forward will be easy to produce if the budget comparison were in Quickbooks with codes matching the chart of accounts.
As the FY2023 Financial Statements still require several AJE’s in order to be accrual compliant, the Finance Committee asked Bruno if it would be possible to prepare and print the FY2023 Financial Statements on Cash Basis. Bruno noted that this is easily done by reversing two Accrual Entries (AJE 3 and AJE 4 as of July 1, 2023 Accrual Reversal Date) after which the Financial Statements will be on a Cash Basis.
Going forward, Bruno believed that adding an Accounts Payable entry would allow the Town to book expenses post 30 June and allow Quickbooks to run either Cash Basis or Accrual Financial Statements at a click of a button.
Next Steps were discussd:
- Bruno requested that the Treasurer re-run the Delinquent Tax Report through August.
- Bruno suggested the Finance Committee should ask the previous year Auditor the purpose of adjusting FY2022 Delinquent Taxes (Account 3903) to the Unrestricted Fund then making AJE’s to send the amounts back to the Delinquent Tax Account.
- Bruno suggested the Finance Committee should ask the previous year auditor where the Deferred Property Taxes in account 2600 came from.
- Once the final Delinquent Tax Report is provided, Bruno will adjust AJE 1 which is the Delinquent Tax & Penalties Account (Account 3903) with the offset account on the P&L as Residential & Land Property (Account 5110)
- Ask the CPA about reconciling July invoices as Accounts Payable in order to help facilitate AJE’s and more easily switching between Cash and Accrual accounting methods.
A discussion of Capital Assets and depreciation schedules ensued. In further discussion, Bruno pointed out that the Town’s Equipment value is not noted on the Audited Balance Sheet for FY2022. All present noted their belief that this the result of how Municipal Financial Statements deal with Capital Assets.
McAllister and Christofferson thanked Bruno for her time and good collaboration with the Town in ensuring the Town’s finances are accurately reflected in the statements presented to residents.
With no decisions made, McAllister adjourned the meeting at 8:17 pm
Meeting recording link: https://youtu.be/fYvuwMHLD_Q?si=0jydaVc2a7-ifjrZ