Wednesday, April 1, 2015

Live reporting: audit results - "an unqualified opinion"

Susan Gagner, Karen Snow,

Melanson Heath audit results

The full set of results can be found in the package
http://town.franklin.ma.us/Pages/FranklinMA_CouncilAgendas/2015%20Complete%20With%20Documents/040115.pdf

"an unqualified opinion" is the highest rating to be received

9.4% unassigned fund balance
general and budgetary stabilization funds increased since last year
policy to be at 5-10%, and you are right where you want to be

page 14 - funds in two columns
include all the long term assets and liabilities

bonds for the high school increased
OPEB unfunded liability being recognized over 30 years
work underway to get it fully recognized ealier

need to recognize the Franklin portion of the Norfolk County retirement system
$45M is Franklin's piece will show on the statement for FY 15 (next year)

have started funding it with the trust fund

page 15 - unassigned fund balance
increase 8.1 to 9.4%
bond ratting to AA+, part of the increase due to the solid fund balance

page 20 - general fund budgetary results
positive revenue, motor vehicle excess in higher than forecasted, expenses also $1.4 less than expected hence the increase noted

all unrestricted fund balances in enterprise funds are healthy too

solid position, solid and well managed

recognizing these large liabilities is being done, you have been paying down
you are paying them as you are accessed each year

Nutting - when we talk about an annual budget issue, 10 years ago that didn't exist, we are not funding it anywhere we need to. Those pressures didn't exist. I will continue to 'cry wolf'. We are going to have to replace technology sooner as that is the nature of it

Kelly - $134 M in liabilities, how do we compare?
Snow - comparable to other towns of your size. It will need to be funded but you are about right there where others of your size are.

Kelly -
Snow - there are very few are fully funding, and their funding requirements are smaller. In most cases they are putting a little bit each year and that helps to reduce the liability

Kelly - I can't give enough credit to the town and our staff for getting us to our AA+ rating, nice work

Padula - I am concerned about this, the fact that we are going to have to recognize this doesn't help. How are we going to pay for this?

Nutting - pensions have to be funded by 2040, cost of pensions on an ongoing basis, we didn;t fund it for 50 years like every other community. We need to fess up and pay up. It will be here tonorrow. The state needs to make some stautory laws to help, folks living longer, retirements earlier, so that helps to create the issue.. Rigth now you can work 10 years, 20 hours and then get benefits for the rest of your life. We can't afford to do that. Thos would eat up every dollar of new money if something didnt happen

Feldman - recommendation in management letter
Snow - developing a long term project for a risk assessment, defined and established procedures  to ensure towns assets are protected. This is the only unresolved

Nutting - the reason we are in fiscal position, the Council takes the action on the budget not to keep everybody happy but to keep us healthy financially. It is a long term commitment by the COuncil that does the progress. Acolades to the COuncil

Snow - thanks to the Administration and every one involved, we have no issues in getting info and responses,



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