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Bureau of Accounts (BO A ) Gerard D. Perry Director of Accounts Anthony Rassias Deputy Director of Accounts Training Objectives To better understand the responsibilities of the Bureau of Accounts To learn the basics of setting a tax rate

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Bureau of Accounts


Gerard D. Perry

Director of Accounts

Anthony Rassias

Deputy Director of Accounts


Training Objectives

To better understand the responsibilities of the

Bureau 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

Each community is assigned a BOA field


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

They also provide instruction in soundmunicipal

accounting 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 Levy




Tax Rate


Assessed Value

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 rate

provided that the community--

has a balanced budget


is under the levy limit


Tax Rate Approval

Communities that issue semi-annual tax bills must

submit their tax recap to BOA bySeptember 1

Quarterly communities must submit the recap by

December 1


Tax RateApproval

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 depending

on whether the property is classified as residential

or commercial, industrial or personal





Click here for answer

Click here for answer


Communities are limited by the constraints of

? in the amount they can levy in property taxes.

Proposition 2 1/2

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



Free Cash Certification

Free cashis 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 based

on the community’s balance sheet for the fiscal year

ended June 30

The balance sheet consists of assets, liabilities and

fund balances

It is prepared by the town accountant or city

auditor with a target date for submission of

September 15


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

Cash and receivables must be reconciled

Deficits created by overdrawn accounts

(excluding legal deficits) and illegal

appropriations are then subtracted

Free Cash Certification

Review Process


Click here for answer

Click here for answer


Free cash certification requires the reconciliation

of ? and ?.

cash and receivables

The target date for submission of the balance

sheet is ?

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 Ais 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


Click here for answer

Click here for answer


The Schedule A is prepared?by the accountant

or auditor.


BOA reviews ?to determine whether further

assistance is needed to help a community resolve

potential or existing problems.

management letters


Debt Section

BOA’s debt section works with municipal treasurers

and financial advisors on borrowing issues

including State House notes, short term debt

and bonds