HomeMy WebLinkAboutAudit Comm. 10/11/2017Audit Committee Meeting
October 11, 2017
Present: Christie Martin, Michael DeSantis, Frank DelVecchio, and Kiera O'Neil
RECEIVED
George Sommer was not present for the meeting. "OWN CLERKS OFFICE
Mr, Michael Nelligan, Mr. Joseph Sollecito, Mr. Jess Aptowitz and Mr. John Stanbrg4jjv0f(Pago likes1r4b
The meeting was called to order by 7:04PM John Stanbrook MANSFIELD
"ASSACHUSETTS
1. Reorganization of the Committee for FY18
Mr. Stanbrook asked for nominations for Chair person. Ms. O'Neil nominated Mr. DelVecchio.
Motion: To appoint Mr. Frank DelVecchio as Chairman of the Audit Committee. (O'Neil/Martin) Passes 4:0
Chairman DelVecchio asked for nominations for Vice -Chair.
Motion: To appoint Ms. Kiera O'Neil as Vice Chair of the Audit Committee. (DeSantis/Martin) Passes 4:0
Ms. O'Neil stated the committee could appoint George Sommer Clerk of the Audit Committee. Passes 4:0
2. Review of FY17 Draft Audit for the Mansfield Municipal Electric Department (MMED)
Mr. Nelligan stated Powers and Sullivan will do a stand-alone report of the light plant because of a filing
requirement with ISO. The CAFRA will not be ready until the middle of December. He stated that approval
from of the Audit Committee is needed to issue it and the report needs a few tweaks in the OPEB notes and a
few minor wording changes in footnotes.. Mr. Nelligan then went through the draft of the Mansfield Municipal
Electric Department Audit.
Mr. DeSantis asked about the $3.9 million in doubtful accounts. Mr. Nelligan answered that it is a conservative
estimate. Mr. Sollecito added that accounts over a year typically are about $100,000 per year and resident
customers who show hardship plus a health condition have protection typically beyond six months. Mr.
Sollecito then stated that the debt stays with the customer and when it is paid the funds will go back to the
reserve. Mr. Nelligan stated that the department can lien certain accounts. Mr. Sollecito stated that over
ninety percent is residential debt. Mr. Nelligan stated that this is seen often in residential buildings and that
the Electric Department cannot lean the owner of the building for a tenant in an apartment. Mr. Sollecito
stated that new customers now have a deposit in place to start service.
The Committee had no other questions.
3. Possible Acceptance of FY17 MMED Draft Audit and Authorization to Release the FY17 MMED Audit
When in Final Form
Motion: To accept the FY17 MMED draft audit and authorize it to be released when in final form as amended
as described. (O'Neil/DeSantis) Passes 4:0
4. Timeline Update for FY17 Town Audit
Mr. Nelligan provided the audit timeline on page eight through ten of the handout. This information was ready
for the May and June meeting that had been cancelled. Mr. Nelligan stated that last year the pension
information was late and caused a significant delay that will not be a problem for this year. Mr. Nelligan stated
they will begin field work on November 6' 2017 and be ready a few weeks after that point.
The next meeting was scheduled for December 6, 2017 at 7PM.
Audit Committee Meeting
October 11, 2017 Page 1
5. Discussion of auditing services contract for FY18, FY19, and FY20
Mr. Stanbrook stated that the three year contract was signed and fiscal year seventeen was the last year of
the current contract. Mr. Nelligan stated that if the Town were planning to change firms that it would need to
be done by January or February. Chairman DelVecchio asked for this to be an agenda item for the next
meeting on December 6th. Mr. Stanbrook stated that auditing services are exempt from going out to bid.
6. Any other items not known 48 hours prior to the meeting
There were no items.
7. Adjourn
Motion: To adjourn the Audit Committee Meeting on October 11, 2017 at 7:47PM. (O'Neil/Martin) Passes 4:0
Signature Date
Minutes prepared by Carrie Champagne
Audit Committee Meeting
October 11, 2017 Page 2