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HomeMy WebLinkAboutFINCOM12122013Town of Mansfield Finance Committee i Minutes of December 12, 2013 RECEIVED 1 t F Present: Steve Schoonveld, Vice Chairman; Liz Christo, Clerk; Members: TSi 6ttl1F61`7y- t AFSa i et, and Yogen Chemburkar 1814 6C1 I U Ail: 51 Absent: Chairman, Walter Wilk; Michael O'Brien, Member lm Ics FkEL© Call to Order: Vice Chairman Schoonveld called the meeting to order at 7:30 pm. Review Of Minutes Motion: To accept minutes of April 25, 2013 minutes (Christo /Feely); Approved (4 -0 -1) Roll call vote: Christo aye, Chemburkar aye; Schoonveld aye, Feely aye, and Bazinet abstains Consideration with Budget Proposals First half hour Steve Schoonveld would like to discuss theoretical budget issues including last year's budget. Second half hour of meeting Steve Schoonveld would like to discuss formulated data requests. Last year we had a target of level spending, plus prioritization of new items and utilization of no more than $1.5 million of free cash and this year we have level spending, a robust prioritization approach and a free cash use of $1 million. T.iz Christo wants to clarify level spending as what the cost is to provide existing services. Scott Feely feels we are on good track and the increases were clearly identified. Scott Feely feels CIP is off to an excellent start.and is adhering to what Finance Committee has asked. Scott will report on any updates. Steve Schoonveld wants to enhance financial discipline of the Town. Liz Christo talks about sustainability of spending. Yogen Chemburkar asks if there are any key ratios established. It is hard to normalize costs without seeing it in that manner. James Bazinet explains the difference between a financial audit and an operational audit. James Bazinet requested from John Stanbrook the functions in detail from Softright which will tell you exactly what should happen unless modified. Functions in detail will explain what each module can do, including report writing capability. Steve Schoonveld asks James Bazinet if he feels policies and procedures are key to financial structure. James Bazinet agrees policies, procedures and practices create financial structure but a compliance review need to be performed in order to assure the integrity of the financial structure. James Bazinet also believes a strategic audit review, as well as, a risk/control matrix needs to be created. A risk performance matrix does not currently exist. Liz Christo asks what kind of financial matrix we are looking for. Yogen Chemburkar says a performance iatrix. If we are adding more costs what services are we getting for that cost. Liz Christ asks what services are we not getting from Softright? Page I 1 Finance Committee Meeting December 12, 2013 James Bazinet says Softright could do ratios. For example, if he wanted to compare the amount of budget (°•nds against the headcount in the schools and run that against any Town of the same population to see if Dios are up or down. Steve Schoonveld wants to talk about what are some of the limitations of a level service spending, prioritization and cap of free cash approach. For example, how do we know if this is consistent with the goals of the Town? James Bazinet says the strategic plan that has already been accepted by the Board of Selectmen and the tactical plans should be consistent with the strategic plan. Liz Christo says the matrix is already done for FY 15, James Bazinet says an update to MLB Operational Audit report should be recommended. Steve Schoonveld talks about the two side jobs he wants to do this year: 1) is to make sure there is proper control environment and 2) that there is some audit integrity. It does not affect budget today but it is building a foundation to build sound financial discipline in the Town. The second job is building a cluster of principles for the Town and we are reviewing them as we go. Steve Schoonveld goes back to the budget process; sustainability, adherence to principles, data information using key ratios, goals. The nagging question Steve Schoonveld has is we spending the Town's money efficiently? He cannot sit back and say that. He can say we are not doing any more damage. ( z Christo feels the Town's money is being spent efficiently. John Stanbrook tells us when accounts are overspent. James Bazinet feels the problem faced by John Stanbrook is that he only has 2/3 of the information he should be seeing. The Treasurer is leaving. She is moving on before we have an opportunity of creating effective Treasury documentation. It will be difficult for someone new to come in without that documentation and know how things are done. Scott Feely says we are trying to follow policies but we currently do not have sufficient written policies in place and that will affect our steps going forward. Recommendations are constrained because of what we know. Liz Christo states that is Massachusetts General Law. The school department is following the rules. Steve Schoonveld is not saying the decisions were wrong but they are not fully supported. They are not saying the Town or Schools are making bad decision. We are saying it is the best decision they could make. Formulated Data Request List Scott Feely states on the CIP side there were good presentations from all. Every presenter except for one group had a robust five -year plan that showed significant improvement over what we have seen. All presentations were well thought out and the results of the current requests reflected that. All departments / ad reasonably consistent needs. Given the guidelines of roughly $2.8 million of free cash with $1 million .or budgetary needs and $1.8 million for capital needs, CIP came out at $1.3 million with surplus of Page 12 Finance Committee Meeting December 12, 2013 $490,000. The excess funds can be moved to stabilization fund. For the public safety building we are considering debt exclusion. All other requests (other than roads) added up to $1.3 million. This allows the police Department to request a vehicle which will allow them to get on their program of replacing three ,hicles every year. Scott Feely feels that the CIP process was very cooperative. This is progress and definitely a step in the right direction. Steve Schoonveld feels the Town and schools need to self evaluate. This kind of matrix we could build to encourage them. Scott Feely talks about development around the train station. Currently there is an emphasis on residential development. This would impact the schools. If the emphasis shifts to business, traffic patterns will be changed. Consultants are looking at parking structures. Steve Schoonveld redirects back to data request. We need to ask the questions on how does the budget and your plan going forward meet the strategic plan. Finance Committee wants to look at variances on what is budgeted and what is spent on a quarterly basis. Update January 7, 2014 will be joint meeting at School Committee Hearing, January 8, 2014 will be joint meeting with the Board of Selectmen. Town Manager is presenting Town budget to the Board of Selectmen. If School Committee Meeting is not continued, then a Finance Committee Meeting will be posted for nuary 9, 2014. Adjourn Motion to Adjourn at 8:30pm (Christo /Chemburkar) Approved Roll call vote: Christo aye, Chemburkar aye; Schoonveld aye, Feely aye, and Bazinet aye I." " fo 9 II Clerl ignature Date Page 13 Finance Committee Meeting December 12, 2013