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ENFIELD TOWN COUNCIL
MINUTES OF A SPECIAL MEETING
JANUARY 13, 2000
A Special Meeting of the Enfield Town Council was held in the Enfield Room of the Enfield Town Hall, 820 Enfield Street, Enfield, Connecticut on Thursday, January 13, 2000. The meeting was called to order at 6:33 p.m.
ROLL-CALL - Present were Councilors Falk, Fiore, Hall, Kaupin, Mangini, Strom, and Vayda. Councilor Egan entered at 7:47 p.m. Councilors Dodd, McGuire and Surapine were absent. Also present were Town Manager, Scott Shanley; Town Clerk, Suzanne Olechnicki; Director of Finance, Gregory Simmons; Director of Public Works, John J. Kazmarski; Assistant Director of Public Works; Carlo Bonavita; Administrative Supervisor of Public Works, William Sperrazza.
AUDIT PRESENTATION
Mr. Shanley stated the Council has before them the comprehensive annual financial report and a management letter which provides comments and thoughts by the auditing firm. He noted this is the fifth year that this firm has conducted the annual audit.
Present for this discussion was Scott Trenholm of DiSanto Bertoline & Company, P.C., engagement partner for the Town of Enfield audit.
Mr. Trenholm familiarized the Council with the layout of the audit document. He noted theyve issued an unqualified opinion on the Towns financial statements for the year ending June 30, 1999. He highlighted a few audit adjustments made during the course of the audit.
He noted there were no disagreements with management during the course of the audit over application of accounting principles, and there were no difficulties in performing the audit.
Mr. Trenholm referred to the combined balance sheet (Page 18) and stated this is a very strong balance sheet with the Town having a large fund balance, and the assets exceed the liabilities by greater than two to one. He then referred to Page 19 (combined statement of revenues, expenditures and changes in fund balance), and noted this reflects an excess of revenues and other financing sources over expenditures.
He referred to Exhibit C and pointed out the revenues came in approximately two percent over what had been budgeted, and expenditures came in approximately one percent below what had been budgeted. Mr. Shanley interjected hes very pleased with this.
Mr. Trenholm stated Page 24 begins the notes to the financial statements. He referred to Note 6 on Page 33 - changes in long term debt - and he pointed out the Town did issue bond participation notes during the year ending June 30, 1999, and those still existed at the balance sheet date, and they were subsequently retired when the bond issuance took place in October.
He referred to page 92 and federal and state single audits, and explained they test compliance with requirements of major programs, i.e., grant monies from the federal or state government.
Mr. Trenholm referred to page 99 and noted this is a one-page summary of the results of the federal single audit. He noted they identified no material weaknesses in connection with internal control over financial reporting, nor do they note any non-compliance. He pointed out they do issue another opinion within this section of the report, and that is basically an opinion on compliance with federal major programs, and that was an unqualified opinion.
He referred to Page 96 where theres a detailed schedule of all the various grants that the Town received from the federal government. He noted this is prepared based on grant expenditures.
Mr. Trenholm pointed out the state has a similar requirement whereby theres also a state single audit, and a similar summary of results is found on Page 109, and this also has an unqualified opinion.
He noted the state schedule of expenditures is found on Page 105.
He stated Page 109 also lists the major non-exempt programs, and these are the programs that were specifically tested.
Councilor Mangini referred to the pension trust fund and the suggestion of a quarterly report, and questioned how this differs from whats currently happening. Mr. Trenholm stated the Town is obtaining information from CIGNA and putting that information together on an annual basis for the purpose of doing the audit. He pointed out this is a fund of the Town as other funds, all of which have separate books and records (a general ledger). He noted their suggestion is that a general ledger be maintained for the pension trust fund as well. Mr. Simmons added they do receive monthly financial statements from CIGNA and analyze those.
Councilor Mangini requested clarification on the LOCIP fund, and Mr. Simmons explained they separately identify LOCIP funds, but for accounting purposes those were grouped in with capital funds.
Mr. Trenholm referred to the letter accompanying the audit document and stated they noted no material weaknesses or reportable conditions in internal control. He added the letter does contain some recommendations that they feel would enhance the financial reporting of the Town. He stated this year there are three additional matters for consideration:
o encumbrance accounting issue - the new software system will account for encumbrances
o performance bonds - the Town is presently carrying a significant list of performance bonds in its agency funds which contractors have put up in connection with providing services
o expendable and non-expendable trust funds - the concern is that in some instances the non-expendable trust funds have a balance which is less than the original principle and depending on the terms of how the money has been given to the Town it may be necessary to either restore funds in the case of non-expendable trust funds or perhaps theres a piece of expendable trust funds which should be considered reserved.
Mr. Trenholm stated the balance of the issues are repeat comments from the prior year. He noted the first two pertain to the Water Pollution Control facility and combining two funds into one and the issue with some accruals that are on the books that take on the connotation of reserves as opposed to accruals.
Councilor Kaupin requested clarification regarding trust funds. Mr. Trenholm explained the Town receives dollars from donors for specific reasons, i.e., memorials. He noted the Town has to make a determination of whether these are expendable or non-expendable. He noted non-expendable means having to maintain the principle. He went on to note in the case of expendable trust funds the principle can be spent, but it typically needs to be spent for a specific purpose. He stated his belief that to the extent that principle still exists, it should be considered reserved fund balance and not unreserved fund balance because its reserved by the donor to be spent in accordance with their wishes. Mr. Simmons pointed out Page 66 makes this clear.
Councilor Falk questioned what was the gross favorable variance for the general fund, and Mr. Trenholm responded $405,326.
Councilor Falk questioned what percentage rate was budgeted for property taxes and what was actually collected. Mr. Shanley stated his belief they collected 97.6% and budgeted 96.8%. He added Enfield does have an excellent collection rate.
MOTION #4371 by Councilor Falk, seconded by Councilor Kaupin to go into Executive Session to discuss Personnel Matters, Pending Litigation, and Real Estate Negotiations.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #4371 adopted 8-0-0, and the meeting stood recessed at 7:16 p.m.
EXECUTIVE SESSION
The Executive Session of the Enfield Town Council was called to order by Chairwoman Strom at 7:17 p.m.
ROLL-CALL - Present were Councilors Egan, Falk, Fiore, Hall, Kaupin, Mangini, Strom, and Vayda. Also present were Town Manager, Scott Shanley; Town Clerk, Suzanne Olechnicki.
Personnel Matters, Pending Litigation, and Real Estate Negotiations were discussed with no action or votes being taken.
Chairwoman Strom reconvened the Special Meeting at 7:20 p.m. and stated during Executive Session they discussed Personnel Matters, Pending Litigation, and Real Estate Negotiations with no action or votes being taken.
TOUR OF HIGGINS, NORTH SCHOOL, CHILD DAY CARE
There was a tour of the Higgins Building, North School, and Child Day Care.
ADJOURNMENT
MOTION #4372 by Councilor Falk, seconded by Councilor Mangini to adjourn.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #4372 adopted 8-0-0, and the meeting stood adjourned at 9:15 p.m.
Respectfully submitted,
Jeannette Lamontagne
Secretary to the Council
By Suzanne F. Olechnicki
Suzanne F. Olechnicki
Town Clerk
Clerk of the Council
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