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HomeMy WebLinkAbout2004-03-10 RMLD Audit Committee MinutesDate March 10, 2004 Time: 6:47 p.m. Minutes of Audit Subcommittee Meeting RMLD Board of Commissioners f 13 `LERK S S. Place: Cafeteria Attendees: Vincent Cameron, Jr., Philip Pacino, Robert Soli, Robert Fournier, Stephen Kazanjian, Frank Biron, Jim Francis, Peter Doyle, Debbie Givens In attendance at this meeting was the Town of Reading Audit Subcommittee. Mr. Biron (Melanson Heath & Company PC) opened with the cover letter and discussed the depreciation process. Ms. Givens asked him to clarify and then understood. Mr. Francis wanted to know if there was a threshold on determining what constituted an expense versus a capital item. Mr. Fournier stated FERC criteria was used. Mr. Biron said the opinion was qualified due to how depreciation was done, but this is the norm for all municipal electric utilities. Mr. Biron stated that the Financials were presented following GASB 34 guidelines and were adhering to Generally Accepted Accounting Principles, which is different than in previous years. Sick Buyback totaling $1.9 million was discussed. Mr. Francis wanted to know what this amount represented. Mr. Fournier told him it was the actual liability owed to the employees and that there was a Cash Reserve established for it. Mr. Cameron also stated that the goal of the plan was to make it self-funding. Ms. Givens wanted to know if it included vacation. Mr. Fournier stated no. Mr. Biron spoke about the outside towns' streetlights and the $3 million rate refund and $3.6 million PPA credit adjustments. Mr. Pacino wanted the deferred fuel charge adjustment broken out so that the current year portion would be shown in the current year. Mr. Pacino wanted the voluntary payments to the four towns to be shown as an operating expense. The payment in lieu of taxes is to be renamed "return on investment". Mr. Cameron explained the MMWEC flush of funds. Pension Trust was reviewed. Mr. Francis wanted to know the funding status of the trust. Mr. Fournier told him it was basically fully funded. Mr. Pacino wanted the two leases footnoted in the Financials. Town Audit Committee made a motion to accept Financials with aforementioned changes and voted 4:0:0. The RMLB Audit Subcommittee voted to accept the audit with the changes 2:0:0 (Mr. Soli made the motion, seconded by Mr. Pacino). Meeting adjourned at 7:30 p.m.