Office of the Select Board
Town of Orange, New Hampshire
Minutes of August 18, 2015
Present: Dorothy Heinrichs, Chair; Robert Ells, Lyell ‘Skip’ Smith, and Sandi Pierson (clerical) Present from the NH Department of Revenue Administration (DRA): Cate DeVasto, Stefan Hamilton, and Shelley Gerlaneau
Others present: Henry Minasian, Treasurer Tessa Michetti, Bob and Shaorn Proulx, and Beverly Ells.
Meeting opened at 4:00 PM.
This special meeting, requested by the DRA, was for the purpose of the DRA to review and discuss the current financial status of the town, Department of Labor and school district concerns, the 2014 Report of Locally Elected Auditors (MS 60), 2014 Financial Report of the Town (MS-5), and other general issues regarding the transition of town officers. Stefan Hamilton stated that the DRA will assist Orange in any manner possible with the any concerns the Board is contending with.
Dorothy stated that all records from the former treasurer, Cathy Bean, are in the possession of the newly appointed treasurer, Tessa Michetti. Tessa stated that the 2014 reconciliation is in process and that she is working on it with as much time as she can afford. At present she has reconciled the treasurer’s books with the tax collector. Next will be the offices of town clerk and Selectmen. She expects to have a 2014 treasurer’s report available within a week or two. Shelley Gerlaneau said that because the 2014 town report did not include the required treasurer’s report, she recommends including it in the 2015 town report. She also recommends including the 2014 audit in the next town report.
Cate Vasto stated that the Department of Labor brought their concerns to the DRA regarding the town’s checks bouncing and vendors not being paid. Dorothy stated that the Select Board understands these issues brought forth to the Department of Labor and those issues are now resolved with the appointment of Tessa Michetti as town treasurer. Regarding the chief complaint of voucher payments being significantly late, Tessa stated that it is her practice to issue checks no more than three or four days after the Select Board vouchers are made available. Tessa has set up a “sweep account” between the town’s checking account and the tax anticipation revenue that automatically deposits the necessary funding to cover checks. Answering a concern brought to the DRA by the school district regarding consistently late monthly payments from the town, Tessa affirmed that school payments are paid to date and timely payments will proceed.
It was agreed that the town needs to appoint a deputy treasurer and that that officer should have access to accounts and passwords. Tess said that she would regularly send a backup of the treasurer’s computer data to the Selectmen’s office. A treasurer’s monthly/annual duty list will also be made available.
Regarding the MS-5, Shelley said that she could not proceed until getting a 2014 treasurer’s report. Shelley pointed out a number or errors in the MS-5 filed by the previous administration including the general ledger figures (expenditures by category for 2014). Also, the balance on December 31, 2013 (from the 2013 MS-5) needs to be the same as the beginning balance on January 1, 2014. It was agreed that the Board will ask Betty Fulton to assist in correcting the MS-5 when the 2014 treasurer’s report is available. (Former Select Board member Betty Fulton did the MS-5 during her time on the board.) Tessa said that the ledger entries in the MS-5 are incorrect because they were entered per the Selectmen’s financial records and there are numerous inconsistencies between the vouchers issued by the Board and the subsequent checks written by the treasurer. Tessa is presently cross-referencing the entirety of 2014 vouchers with the actual check amount.
The Board and the DRA reviewed the MS-60. Dorothy said that at this time both town auditor positions are vacant. Bob Ells suggested it may be necessary to hire an outside auditor if needed. Cate DeVasto expressed concern that reconciliations are not retained or verified. Tessa stated that she will be reconciling monthly with the other officers that deposit money. It was acknowledged that the Board did not receive any treasurer reports since Tessa left office in March of 2014. Tessa said they will resume as soon as she finishes the prior data entry. The Board will check the status of all financial policies to be sure they are being accomplished.
Shelley stated that the MS-4 (Revised Estimated Revenues) is due by September 1 and that the data will be necessary to identify the accurate Unreserved Fund Balance. Shelley will get Sandi reinstated as an administrator to the DRA web portal (to download MS forms). Sharon Proulx requested to be logged in with a viewer status. Sandi will check with Sophie to see if she wants to be a web portal user. Shelley recommended using the 2014 figures of the Meals and Rooms revenue and Block Grant on the MS-4.
The DRA, the Board, and Tessa all agreed the necessary work that needs to be remedied and completed will be done in time for the tax rate to be set in a timely manner. They anticipate having the revised MS-5 in hand by October 1.
Stefan stated he would be available to present an educational session of the impact of industrial wind facilities on taxes. He suggested Boards from other towns could be invited. It was agreed that a meeting could be set for September or October.
Meeting adjourned at 4:47 PM. The Board thanked the representatives from the Department of Revenue Administration for their visit and assisting them during this transition period.
Respectfully submitted, Sandi Pierson
Dorothy Behlen Heinrichs
Robert Ells
Lyell Smith