Feb 272018
 

Town of Braintree

Auditors Meeting Minutes

February 12, 2018

 

Attendees:  Tom Cooch, Stephanie Barrett, Lin Brown

 

  1. Mr. Cooch called the meeting to order at 10:00 a.m.

 

  1. No changes were made to the agenda.

 

  1. The minutes of the April 3, 2017 meeting were approved.

 

  1. Review work completed and remaining for FY18
  2. Ms. Barrett:

Accounts Payable audit for FY18Q1 is completed, Q2 audit will be done in in a few weeks.

Cash Reconciliation audits await development of agreed written procedure.

 

  1. Mr. Cooch:

General Fund and Reserve Funds reconciliations are complete through FY18Q2.

Yearly Grand List audit is completed for FY17.

General Journal audits for FY18Q1 and Q2 are completed.

 

  1. Mr. Brown:

Payroll audits for FY18Q1 and Q2 are completed.

Accounts Receivable audits await development of an agreed written procedure.

 

  1. Audit Procedure Manuals
  2. General Journal and Grand List Audit Procedure Manuals.

Mr. Cooch has prepared new drafts of the General Fund and Reserve Funds Reconciliation procedures.  They were distributed last week. Comments and edits of the working drafts are under review.  Approval was tabled until our next meeting.

 

Mr. Cooch also reported that the Town has created several new sub-accounts in our General Fund/Sweep Account with Mascoma Savings Bank in order to increase the interest we earn there. This will require minor modifications to the General Fund Audit Procedure Manual, which Mr. Cooch will make.

 

  1. Cash Audit Procedure.

Ms. Barrett led a discussion of how cash is handled in the Town Office.  The Town Clerk/Treasurer was invited to participate.  Petty cash and cash receipts for the Town clerk’s fees appear straightforward.  The difficulty lies with cash receipts from taxes.  Are they part of a Cash Receipts audit, or part of an Accounts Receivable audit?

 

 

 

The Town Clerk/Treasurer reviewed for us the policy and procedures she uses in handling cash receipts.  After a productive discussion, we decided to develop a separate audit procedure for all tax receipts. Audits for petty cash and cash receipts for the Town clerk’s fees will have their own procedures.

 

  1. Accounts Receivable Audit Procedure.

As a result of the discussion about cash receipts, an Accounts Receivable procedure will encompass only the income from grants and other sources. Taxes will be handled with a separate audit procedure. Since there is no “Accounts Receivable” module in the NEMRC software, we may wish to change the name of this procedure for compatibility with the software. Ms. Barrett will prepare a draft audit procedure for cash receipts, other than taxes. Mr. Brown will prepare a draft audit procedure for income/receivables from grants and other sources.

 

Mr. Cooch suggested that all auditors develop a list of procedures that could be used as a framework to perform an audit of taxes. The auditors will bring a list of their ideas to the next meeting for discussion and implementation.

 

  1. Storage of Auditing Documents

Mr. Cooch suggested that all audit documents – our written audit procedures and the results of our various audits – be placed together in a common location.  We agreed. Mr. Cooch will prepare binders for these documents and put them in a suitable location in the Town Offices.

 

  1. Our next meeting is scheduled for April 11, 2018 at 7:00 p.m. in the Town Offices.

 

  1. There was no other business conducted at this meeting.

 

  1. The meeting was adjourned at 10:55 a.m.

 

 

Respectfully submitted,

 

Linfield C. Brown