1974.06.27_TC_Minutes_Special
MEETINGS SPECIAL MEETING OF THE TOWN COMMISSION - June 27, 1974
At 10:30 A.M., Mayor Gilday called the meeting to order (the Commission
• was present to hear comments of Mr. George Clements of the Division of
Technical Assistance, Department of Community Affairs, State of Florida,
relative to views and/or recommended changes in the Town's Fiscal Policies
and/or Procedures).
Mayor Gilday read the Special Notice for the meeting into the record
(attachment "A").
Present were: Mayor Gilday, Vice Mayor Joy and
Commissioners Clark and Bauer.
Absent: Commissioner Mumford.
Mr. Clements' findings were based on his on-site review during the
period of June 24 thru June 27, and discussions with key personnel
(Mayor Gilday, Acting Town Manager, Town Treasurer, etc.). He viewed
the present "bookkeeping system" at the Town's request.
The Town is required by Rules of the Auditor General to acquire an Account-
ing system; viz., a sound financial system to comply with generally
accepted accounting practices and procedures, including uniform classi-
fication of accounts, internal controls and entries which reflect all
receipts from source to deposit.
• He stated the reason for his presence was to assist the Town to acquire
a functional accounting system, (mandated by state statute) to meet
legal requirements for both State and Federal matters. He added that he
found the presence of improper techniques and procedures. It was his
opinion that the Town could be faced with serious problems if present
procedures are not corrected. (He stressed the problem of meeting State
Statutes is ever-increasing and is an area which must be viewed and re-
solved.)
Mr. Clements also pointed out that the Fiscal Year Budget must be pre-
pared as a proper vehicle indicating in dollar terms the services, rev-
enues and/or expenditures proposed by the Town Commission, be properly
adopted by Ordinance and any changes in amounts and/or purposes to require
amendatory ordinances prior to effecting any changes in the budget. The
budgetary process must be an on-going process. The Ad Valorem Tax pro-
cedures also requires a Resolution for passage.
In his opinion, other areas requiring corrections are; Cash flow analysis,
investment portfolio, internal audit and controls, elimination of ex-
cessive duplicate entries and fund accounts, establishment of a General
Ledger(not just controlling subsidiary accounts of the various funds)
. and a Procedural Manual describing Financial Operations and responsibil-
ities, etc.
Page -2- ,
MEETING: SPECIAL MEETING OF THE TOWN COMMISSION - June 27, 1974
• In response to Commissioner Bauer's question, he suggested that the
Finance Committee should be an "Advisory group" with no official
capacity; however, they should determine the facts and any recommendatio
or criticisms be brought to the Commission's attention by written re-
port to the Commission.
Commissioner Clark asked to what degree must the Town's Budget be
considered as the mandate for expenditures. Mr. Clements stated that
proper flexibility in the preparation thereof, knowledge of the scope
of proposed expenditures, should minimize changes or inadequacies;
however, as operations dictate changes, such changes should be done
by amendatory ordinance(s) to meet legal requirements. (He stated the
customary practice of stating revenues most conservatively, expenditures
higher than anticipated tends to eliminate contingencies (which cannot
be budgeted) and yet provides the capacity for cushions.
ns
He recommended that the Town's Attorney be given a detailed accounting
of the Town's practices dealing with Occupational license tax, it ap-
peared this could be a problem-area.
His specific recommendations to the Commission were:
1. Hire as part of the Managerial team, a full-time Finance
Director (salary range $12,000 - $13,000 (alternatively,
a part-time employee).
2. Secure a Consultant having governmental expertise,
(familiarity of Florida Statutes) and professional knowledge
of accepted Accounting Stanc3.ards,Procedures and techniques.
3. Discontinue the practice of employing its Accountants
(Auditors) to prepare and/or effect entries to the Town's
financial records.
Mr. Ron Winters, a representative of the Town's Auditing firm, Guthrie,
Jacobs & Eubanks, addressed the Commission and was in full accord with
these recommendations (see Annual Reports).
Mr. Rosenberg of the Finance Committee also endorsed these proposals
reciting that he had, in part, given the same findings. Discussion
followed as to the methods to be employed in hiring the Finance Director
and a Consultant.
Commissioner Clark recommended that such positions be filled concurrently
so that the Finance Director would benefit by the Consultant's expertise
• in the initial establishment of the Accounting System and its functions.
Page -3-
MEETING: SPECIAL MEETING OF THE TOWN COMMISSION - June 27, 1974
Commissioner Bauer offered the motion to hire a Financial Director, the
salary thereof to be negotiable and that the Town secure the services of
a Consultant on the basis of Mr. Clement's proposals. Discussion took
place, then the foregoing motion was seconded.
Motion seconded by Mayor Gilday. The motion was approved with the
affirmative votes of Mayor Gilday, Vice Mayor Joy, and Commissioners
Clark and Bauer.
Mr. Clements stated the Consultant's hire may be in the area of two to
three weeks at $2,000 - $3,000 and he would assist the Town in recom-
mending persons to be considered. Further, if possible, he would assist
and be on-site when such work was being performed. (His salary is being
paid by the State and is of no concern for the Town.)
The Mayor and members of the Commission thanked Mr. Clements and echoed
the sentiments of Mr. Rosenberg, "Utilization of an Expert is time and/
or money well spent."
The meeting then dealt with the 14" water transfer line to be constructed
within the right-of-way of Appleby Street in Boca Raton and City Manager
William Law's req~a.est for a letter accepting certain conditions as stated
in a Memorandum dated March 5, 1974, see attachment "B". Ms. Roberts
summarized the salient points to be agreed by the Commission and she was
authorized to advise their consent. Vice Mayor Joy offered the motion
for approval, Commissioner Bauer seconded and it was approved by all
members of the Commission present.
Discussion then took place as to resumes received for the position of
Town Manager. It was the consensus of the Commission that a six-month
probationary period with contract basis
Meeting adjourned at 12:45 P.M.
APPROVED:
ATTEST - `~/' ~°~L~ ~~ Z.-~~C/
Town Cle
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