Bureau of Accounts

Gerard D. Perry Director of Accounts

Anthony Rassias Deputy Director of Accounts

(BOA)

Training Objectives

To better understand the responsibilities of theBureau of Accounts

To learn the basics of setting a tax rate

To better understand free cash and the purpose of the Schedule A

Five Major Functions

Approve tax rates

Certify free cash

Review Schedule A

Oversee debt issues

Review and approve independent CPA audits

Field Staff

BOA field staff are responsible for assisting municipal financial officers with state regulations and requirements,approval of tax rates, and certification of free cash

Each community is assigned a BOA field representative

They also provide instruction in sound municipalaccounting practices

Tax Rate Approval

The tax rate, when applied to the assessed value of the taxpayer’s real and personal property, provides the single largest source of local revenue (for most communities)

Tax Rate =Tax Levy

___________

Assessed Value

X 1,000

However, communities are limited by the constraints of Proposition 2 1/2 in the amount they can levy in property taxes

`

Tax Rate Approval

BOA annually reviews all tax rate recapitulation(“recap”) submissions and approves the tax rateprovided that the community--

has a balanced budget

is under the levy limit

and

Tax Rate Approval

Communities that issue semi-annual tax bills mustsubmit their tax recap to BOA by September 1

Quarterly communities must submit the recap byDecember 1

Single v. Split Tax Rates

Single tax rate-everyone in the community pays the same rate on their assessed property

Split tax rate-different tax rates apply dependingon whether the property is classified as residentialor commercial, industrial or personal

Tax Rate Approval

Example: $15/$1,000 $15/$1,000

Example: $15/$1,000 $23/$1,000

Review

Click here for answer

Communities are limited by the constraints of? in the amount they can levy in property taxes.

Proposition 2 1/2

Click here for answer

True or False? In communities that have a split tax rate, everyone pays the same rate on their assessed property.

False

Free Cash Certification

Free cash is the amount of unrestricted funds available from operations that can be used as a funding source for appropriation after certification by the Director of Accounts

Free cash is generated when actual revenue collections exceed the estimates used for budgeting and when actual expenditures and encumbrances are less than appropriations

Free Cash Certification

The basic free cash formula is:

undesignated fund balance

less accounts receivable, deficits not authorized by law

plus deferred revenue

equals free cash

Free Cash Certification

The Director of Accounts certifies free cash basedon the community’s balance sheet for the fiscal yearended June 30

The balance sheet consists of assets, liabilities andfund balances

It is prepared by the town accountant or cityauditor with a target date for submission of September 15

Review Process

Deficits created by overdrawn accounts (excluding legal deficits) and illegal appropriations are then subtracted

Cash and receivables must be reconciled

Requires a combined balance sheet as of June 30 for all funds

Free Cash Certification

Free cash certification requires the reconciliation

of ? and ?.

The target date for submission of the balance

sheet is ?

Review

Click here for answer

Click here for answer

cash and receivables

September 15

Audit Reviews

BOA field representatives review the independent CPA audit reports and accompanying management letters for their communities

The audits are used to tie to other BOA submissions made by the community to ensure consistent and factual recording of data

Audit Reviews

BOA reviews management letters to assess whether further assistance may be required by the community to resolve a potential or existing problem

Schedule A

Schedule A is a statement of revenues, expenditures and other financing sources, uses, changes in fund balances and certain balance sheet account information prepared annually by the accountant or auditor at the end of the year

Schedule A

The BOA seeks to reconcile any year to year material variances in cash, fund balance, or other accounts reported on Schedule A

BOA also reconciles year end cash and fund balance amounts from the Schedule A to the balance sheet amounts

The Schedule A is prepared ? by the accountant or auditor.

BOA reviews ? to determine whether furtherassistance is needed to help a community resolvepotential or existing problems.

Review

Click here for answer

Click here for answer

annually

management letters

Debt Section

BOA’s debt section works with municipal treasurersand financial advisors on borrowing issuesincluding State House notes, short term debtand bonds

MENU