HomeMy WebLinkAbout2013-09-25 RMLD Audit Committee MinutesG
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Reading Municipal Light Board of Commissioners
Audit Committee Regular Session Minutes
September 25, 2013
Start Time of Regular Session: 6.40 p.m.
End Time of Regular Session: 7:21 p.m.
Committee Members:
Robert Soli, Chairman Philip B. Pacino, Commissioner
David Mancuso, Commissioner
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Staff:
Coleen O'Brien, General Manager
Robert Fournier, Accounting/Business Manager
Kevin Sullivan, Engineering & Operations Manager
Town of Reading Audit Committee:
Jeanne Borawski
Stephen Herrick
Paul McNeice
Marsie West
Guests:
Frank Biron, Karen Snow and Zack Fentross, Melanson Heath
Citizens' Advisory Board:
David Nelson
Call Meeting to Order.
Town of Reading Audit Committee called the meeting to order at 6:45 pm
Chairman Soli called the meeting to order at 6:45 pm.
Melanson Heath Audit Findings
Ms. Snow stated that the RMLD received a clean opinion. She spoke about the OFEB fund /fiability and
how it was taken off the RMLD books and was now being treated as a trust as of June 30, 2013.
Ms. Snow then addressed the balance sheet on page 6 and income statement on page 7.
Mr. McNeice from the Town had a question about the cash Flow section found on page 8.
Ms. Snow discussed the OPEB Fund. RMLD is behind in its funding of the liability by approximately
$200,000 due to certain assumptions made in the last evaluation report. Town will be doing another
evaluation soon which will allow RMLD to hopefully become fully funded.
Ms. Snow explained RMLD's Renewable Energy Certificates (RFC's). While there is still no authoritative
guidance on this matter, RMLD in Fiscal Year 14 will classify the RECs as an inventory item and not as
an intangible asset.
Ms. Snow pointed out that starting in Fiscal Year 15, GASB 68 will force RMLD (and everyone else) to
record on its books the unfunded portion of the OPEB liability. As it stands now, that figure would be
$12.3 million for the RMLD. More details to come in the following months.
Audit Committee Minutes 2
September 25, 2013
It was agreed by the RMLD and Town of Reading Audit Committees that the audit report as presented
with three adjustments: 1. A chart added with the Renewable Energy Certificates (RECs) 2. Footnote on
r the Pepsion Liability for GASB, and 3. Question on one of the numbers in the footnote that is going to be
checked.
Town voted 4-0 to accept the audit. RMLB voted 3-0 to accept the audit.
Motion to Adjourn
At 7:21 p.m. Mr. Pacino made a motion seconded by Mr. Mancuso to adjourn.
Motion carved 3:0:0.