22:24A significant part of the meeting revolved around a detailed examination of Whately’s revenue sources. A presentation on financial trends provided an in-depth overview of the town’s revenue and expenditure patterns. It was revealed that the tax levy, projected to be the town’s largest revenue source, is complemented by state aid and local receipts. State aid, primarily through Chapter 70 education funds, has consistently increased, reaching $787,000 in the current fiscal year. However, the committee acknowledged potential dips in funding due to pandemic-related changes in student enrollment, affecting school choice funding.

The committee also dissected the complexities of Proposition 2½, which limits the amount a municipality can raise through taxes annually. The levy limit for the current fiscal year is calculated based on a total expense of $7.5 million, with non-property tax revenue estimated at $2.4 million, establishing the tax levy at $5.1 million. The tax rate, determined by dividing the tax levy by the total assessed value of the community, stands at $13.34 per $1,000 of assessed value.

0:00Another important topic was the necessity for a robust fraud prevention policy. During the audit process, it became apparent that adopting a fraud policy is essential to ensure financial integrity. The committee reviewed a drafted policy aimed at enhancing checks within the financial management system. Discussions highlighted the importance of training all employees on check fraud, with a recognition that electronic transfers also pose significant risks. The committee debated the implications of mandatory employee vacations as a fraud prevention measure, seeking clarity on the potential costs and benefits of such a requirement.

22:24Further discussions addressed the role of Unipay in town transactions, with questions about the service provider’s agreement and the safeguards in place to prevent fraud. The committee explored the town’s petty cash account, managed by the town treasurer, who authorizes expenditures and ensures budget alignment. The treasurer’s oversight extends to itemizing credit card bills, providing transparency and accuracy in financial reporting.

1:02:20The meeting also touched on the town’s stabilization funds and free cash reserves. The committee emphasized the importance of maintaining a healthy balance of free cash to ensure financial stability, while acknowledging the dual nature of these reserves in potentially affecting state aid calculations. The current free cash certification stands at just under a million dollars, with the committee advocating for prudent management to safeguard the town’s financial health.

1:23:08Attention was given to the town’s budget planning schedule, with the committee proposing to meet bi-weekly from February 4 to prepare for the April 29 town meeting. The need for transparency and accountability was stressed, particularly concerning school budgets. In previous years, the committee received school budget proposals on the day of the meeting, limiting the opportunity for review. The committee suggested expediting the submission of school budgets and emphasized the importance of collaboration with the select board and school committee to ensure informed financial recommendations.