Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2011-05-23 Board of Selectmen Agenda Packet
TOWN OF NORTH ANDOVER BOARD OF SELECTMEN 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 NORTH Daniel P. Lanen,Chairman a2 s``:' .7 � William F. Gordon TEL. (978)688-9510 Rosemary Connelly Smedile * FAX (978)688-9556 Donald B. Stewart Tracy M. Watson CHU$ BOARD OF SELECTMEN & LICENSING COMMISSIONERS AGENDA MAY 23,2011 —7:30 p.m. TOWN HALL MEETING ROOM 120 MAIN STREET I. CALL TO ORDER AND PLEDGE OF ALLEGIANCE II. APPROVAL OF MINUTES A. May 2, 2011, Open Session Minutes as written B. May 9, 2011, Open Session Minutes as written C. May 9, 2011, Executive Session Minutes as written III. COMMUNICATIONS AND ANNOUNCEMENTS A. Windrush Farms Steering Committee B. Re-Precincting Update-Town Clerk Ad. 0A oc o-Committee da Rep (Izip IV. CONSENT ITEM '( ° t ' A. Thomson School Annual Fun Run: June 9,2011 B. Acceptance of Donation: J. R.M. Hauling and Recycling C. Reclassification and Permission to Hire: Water Treatment Plant Superintendent V. LICENSING COMMISSIONERS A. Essex Art Center— 1600 Osgood Street—One-Day all alcohol license, June 4, 2011 B. Clifford Jewelers—Second Hand Goods (Junk)License C. St. Gregory Armenian Church— 158 Main Street—One-Day all alcohol license- June 16, 2011 VI. PUBLIC HEARINGS A. Street Name Change: Woodbury Lane to Woodberry Lane B. Amending Personnel Policy: Stevens Estate Director-Salary Incentive Plan VII. OLD BUSINESS A. Preparation for Annual Town Meeting VIII. NEW BUSINESS A. Disposal of Surplus Property B. Council on Aging Request to Expand Council Membership C. Audit Committee Expansion D. Meeting Schedule, Second Half of 2011. IX. -- .TOWN MANAGER'S REPORT X. PUBLIC COMMENT X1. ADJOURNMENT DRAFT BOARD OF SELECTMEN MINUTES MAY 2, 2011 CALL TO ORDER: Chairman Daniel Lanen called the meeting to order at 7:00 PM at Town Hall Meeting Room. i ATTENDANCE: The following were present: Daniel Lanen, Chairman; William F. Gordon, Clerk; Tracy Watson, Licensing Chairman; Rosemary Connelly Smedile, Donald Stewart, Mark Rees, Town Manager; Ray Santilli, Assistant Town Manager. PLEDGE OF ALLEGIANCE COMMUNICATIONS ANNOUNCEMENTS AND PUBLIC COMMENT: The Town Manager made changes to the Agenda as follows: The A&Hoc Committee Report was postponed and adding under communications a proposed delay to'Ahhual Town Meeting. Status Report from the Facilities Master Planning Committee ,i Chairman of the Facilities Master Planning Committee Richard Narde'lla provided an update of building assessments, department space programs, site evaluations and alternative scenarios. The goals are the following: To move school administration and common ty`development offices to new locations before their leases expire (2013 and 2016); Rehab and reuse existing building stock to the extent possible; Maintain level funding in the Capital Program; and keep downtown active. A full presentation and report will be made at the Annual Town Meeting. Stevens Library Book Sale, May 13, 2011 The Library will be holding their annual B'ook.Sal0rom May 14;thru May 15, 2011. Certification for Purchasing The Town Manager announced that Assistant Town ManagerRay Santilli,has completed a state course for Certification in Purchasing: Proposed Delay to Annual Town Meeting Mark Rogers Chairman of°the Financ6l'Committee apologized that he did not realize that it was his responsibility to electronically publishitheEWarrant which',includes the Finance Committee Report 21 days prior to Town;Meeting At the advice from Town Counsel the�io' Udent course`of'action is to delay Town Meeting to be in compliance;Uvith the report deadline. The,nnance Committee will use this additional time to refine our analyses and Watch for changes=to' state aidiand other revenue sources. Mark Rogers said toensure that ttils'does not happen again he will work closely with the Town Clerk's office to monitor this�pr'.ocess and putt in place deadlines. f 3s , The Board discussed several dates`to reschedule a date and location for the Annual Town Meeting. William Gordon made a MOTION, seconded by Tracy Watson, to reschedule the Annual Town Meeting from May 10, 2011 to June 7, 8, 2011 at the Middle School Auditorium starting at 7:00 p.m. Vote approved 5-0. CONSENT ITEMS: Request to Conduct Memorial Day Parade and Ceremony on May 30, 2011 The Patriotic Observance and Marching Committee requested an event permit to conduct the Memorial Day Parade on Monday, May 30, 2011 from 10:00 a.m. to 12:00 noon. William Gordon made a MOTION, seconded by Tracy Watson, to approve an event permit to the Patriotic Observance and Marching Committee to conduct a Memorial Day Parade on Monday, May 30, 2011 from 10:00 a.m. to 12:00 noon. Vote approved 5-0. Board of Selectmen Minutes May 2, 2011 2 PUBLIC HEARING Energy Services Contract Award to Ameresco, Inc. (continued from 5:00 p.m.) Assistant Town Manager said this hearing is a requirement of MGL Chapter 25A, Section 111, which governs how municipalities can enter into Energy Performance Contracting (EPC). Town representatives, including Town Counsel, have been meeting with Ameresco to finalize all aspects of the investment grade audits (IGA) and specifically an energy services agreement(ESA) to design and replace the HVAC system at the Stevens Memorial Library. An audit of the Library and replacement of the HVAC system has been completed at an estimated cost of$385,000 (budgeted at$460,000). The design and installation is scheduled to be completed by the end of July 2011. The Board was requested to make a formal acceptance of this energy performance contract with Ameresco. Rosemary Smedile made a MOTION, seconded by Donald Stewart, to approve and authorize the Town Manager to sign the contract documents. Vote approved 5-0. LICENSING COMMISSIONERS: Rosemary Smedile made a MOTION, seconded by Donald Stewart, to move into Licensing and open the Public Hearing. Vote approved 5-0. Liquor Regulations Violation Hearing: The New Beijing Restaurant Licensing Chairman Tracy Watson read the notice of possible violations, dated April 15, 2011, sent to license holder Wen Jing Huang, Millennium Eatery, Inc. Beijing Restaurant, 1250 Osgood Street, North Andover, MA 01845. Possible violations on March 30, 2011 and March 31, 2011 as follows: 1. MGL Chapter 138 Section 69"No alcoholic beverage shall be sold or delivered to an intoxicated person on any licensed premises" 2. 204 CMR 2.05 "No licensee shall permit any illegality to occur on the licensed premises. The licensee is responsible, whether present or not, for ensuring that no disorder, disturbance, illegality takes place in or around on a licensed premises. Chairman recognized the first witness Officer Joseph Kamal and the Town Clerk administered the Oath. Officer Joseph Kamal gave testimony of the events on March 31, 2011 at 3:05 a.m. While patrolling route 125 Officer Kamal was forced into the soft shoulder to avoid a collision by an individual that was operating a vehicle that was swerving across the marked lanes and heading straight for the police vehicle. The officer eventually followed the vehicle and stopped it by Bertucci's Restaurant. The individual was an Asian man who did not speak or understand English and was identified as Can Q Liang husband of the owner Wen Jing Huang of the New Beijing Restaurant. He had a very strong odor of alcohol emanating from his breath and he failed both sobriety tests. Based on the officer's observations he was intoxicated under the influence of liquor and was placed under arrest. This was the individual's second offense. Attorney William Sullivan representing the Beijing Restaurant asked Officer Kamal several questions regarding the incident. Selectmen Gordon and Smedile asked the Officer questions if this individual could have been drinking after the Restaurant had closed for the evening and if this was a violation of the Alcoholic Rules and Regulations. Licensing Chairman_recognized Detective Daniel Cronin and the Town Clerk administered the Oath. Detective Cronin said the next day he called the Beijing Restaurant to request a viewing of surveillance footage from 11:00 p.m.-3:00 a.m. timeframe of the video cameras. Arrangements were made for Detective Cronin and Officer Barter to view the videos. The video observes Can Q Liang staggering around the bar area around 2:00 a.m. drinking from a long neck beer bottle. Detective Cronin had a copy of the video and asked the Selectmen if they wanted to watch the video. Selectmen, the Town Manager and Attorney William Sullivan viewed the video footage. Board of Selectmen Minutes May 2, 2011 3 Licensing Chairman recognized Detective Robert Barter and the Town Clerk administered the Oath. Detective Barter gave testimony that he accompanied Detective Cronin to the restaurant and viewed the video tape of the intoxicated individual on March 31, 2011. On April 7, 2011, Detective Barter met with bartender Christina Bonefant and questioned her about the evening of March 31, 2011. He testified that the bartender said that it was not unusual for the owner's husband to help himself to alcohol behind the bar or take it from the downstairs function hall. She saw him drinking from a long neck beer bottle and he appeared to be intoxicated from his mannerisms. She observed him to be unsteady on his feet while trying to put on his jacket just before 3:00 a.m. when he was leaving the building. On previous occasions he would have his son drive him home or sleep in the building if he was too intoxicated to drive himself. Attorney Sullivan asked Detective Barter several questions regarding the bartender as to whether she served him any alcohol that evening or where the liquor was stored other than the bar. At this time Chairman Tracy Watson asked if Attorney Sullivan had any witnesses to come forward. Witness Christina Bonefant was recognized and the Town Clerk administered the Oath. Christina Bonefant testified that she has been a bartender for seven years and was on duty on March 31, 2011. She stated that she did not serve him any liquor that evening. She did see him drinking from a long neck beer bottle and considered him to be intoxicated. She had a hard time communicated with him because he did not speak much English. Mr. Can Q Liang was the owner's husband and he is also cook in the kitchen and has access to liquor elsewhere. The kitchen closes at 12:30 a.m. and he was still in the restaurant drinking until 3:00 a.m. Attorney Sullivan stated that the bartender did not serve or deliver any alcohol to the individual. Town Counsel Thomas Urbelis stated within the realm of 204 CMR 2.05 "No licensee shall permit any illegality to occur on the licensed premises."The licensee is responsible, whether present or not, for ensuring that no disorder, disturbance, illegality takes place in or around the licensed premises". The Licensing Chairman Tracy Watson asked for a MOTION to close the Public Hearing. Rosemary Smedile made a MOTION, seconded by William Gordon, to close the Public Hearing. Vote approved 5-0. Daniel Lanen made a MOTION, seconded by William Gordon, to determined that there was a license violation on March 30, 2011 and March 31, 2011 of MGL Chapter 138 Section 69 "No alcoholic beverage shall be sold or delivered to an intoxicated person on any licensed premises" and 204 CMR 2.05 "No licensee for the sale.of alcoholic beverages shall permit any disorder, disturbance or illegality of any kind to take place in or on the licensed premises. The licensee allowed an intoxicated person to consume alcohol on the premises, Chapter 138, Section 69. A violation of Section A(12) of the Licensing Commission Regulations adopted November 19, 2007 states that the licensee shall not allow a manager or alternate manager or an employee to consume alcoholic beverages while on duty or after closing hours The licensee is responsible, whether present or not, for ensuring that no disorder, disturbance, illegality takes place in or around the licensed premises". Vote approved 5-0. The Licensing Commission discussed the history of prior violations found by the Commission as well as by the ABBC and said they tried to work with the owners and management of the Beijing Restaurant for years and this is a continued history of violations Rosemary Smedile made a MOTION, seconded by Daniel Lanen, to revoke the liquor license effective immediately. Vote approved 5-0. Board of Selectmen Minutes May 2, 2011 4 You have the right to file an appeal to the Alcoholic Beverages Control Commission within 5 days. MGL Chapter 138, Sec. 67 states in part"Pending a decision on the appeal, the action of the local licensing authorities shall have the same force and effect as if the appeal had not been taken. Rosemary Smedile made an AMENDMENT to the MOTION, seconded by Daniel Lanen, to revoke the liquor license effective tomorrow May 3, 2011. Vote approved 5-0. The License holder will be notified of the Licensing Commission's decision in writing tomorrow on May 3, 2011. Rosemary Smedile made a MOTION, seconded by William Gordon, to move out of Licensing. Vote approved 5-0. OLD BUSINESS: Preparation for Annual Town Meeting The Town Manager said if Town Meeting votes in the Meals Tax, the Finance Committee voted on April 28, 2011, an alternate budget allocation contingent of revenues collected the school department to receive 71.2%, municipal department to receive 14.2% and the stabilization fund to receive 14.5%. Decisions were made based on "point of need". The Town Manager suggested the Board approve changes to the Municipal Budget based on this. Selectmen discussed why the Finance Committee changed the split of 68.75% and 31.26%. Selectmen cannot support this split and what if the meals tax does not bring in the projected revenue. What happens then? There was a lengthy discussion regarding the Meals Tax and its revenue. Constellation Energy Contract Assistant Town Manager Ray Santilli answered questions pertaining to the Constellation Energy Contract. This contract pertains to an emergency generator at the Water Treatment Plant during extreme peak energy needs. The Water Treatment Plant would go"off line" of the electrical grid and activate their emergency generator. As a result, the Water Treatment Plant would be paid a monthly stipend to be available and then extra revenue during such an event. There have only been two events in the past five years that lasted approximately three hours and four hours. If the WTP did not participate in an event for whatever reason, the WTP would not receive any additional revenue. NEW BUSINESS: Resolution in Support of Updating the Massachusetts Bottle Bill The Board was asked to support an updating of the Massachusetts Bottle Bill. A Resolution example was enclosed for the Board's review. The Board recommended forwarding this Bottle Bill Resolution to the Sustainability Committee, which Selectman Donald Stewart is, a member. TOWN MANAGER'S REPORT: The Town Manager said the next meeting would be on May 9, 2011, starting at 7:00 p.m. ADJOURNMENT: Rosemary Smedile made a MOTION, seconded by Tracy Watson, to adjourn the meeting at 9:00 p.m. Vote approved 5-0. Adele J. Johnson Administrative Secretary William Gordon, Clerk of the Board ,. BOARD OF SELECTMEN MINUTES MAY 9, 2011 CALL TO ORDER: Chairman Daniel Lanen called the meeting to order at 7:00 PM at Town Hall Meeting Room. ATTENDANCE: The following were present: Daniel Lanen, Chairman;William F. Gordon, Clerk;Tracy Watson, Licensing Chairman; Rosemary Connelly Smedile, Donald Stewart, Mark Rees, Town Manager. EXECUTIVE SESSION: Donald Stewart made a MOTION, seconded by William Gordon, to move into Executive Session to discuss"Negotiations with Non-Union Employees"and "Executive Session Minutes Review". Roll Call vote: William Gordon yes, Donald Stewart yes, Rosemary Smedile yes, Tracy Watson yes, and Daniel Lanen yes. Vote approved 5-0. Chairman Daniel Lanen declared that an open meeting may have a detrimental effect on the bargaining position of the Selectmen. Note: Daniel Lanen and Rosemary Smedile recused from Executive Session. RECONVENE AND PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES: William Gordon made a MOTION, seconded By Tracy Watson, to approve the Open Session Minutes of April 12, 2011, as written. Vote approved 5-0. William Gordon made a MOTION, seconded by Tracy Watson, to approve the Open Session Minutes of April 25, 2011. Vote approved 5-0. COMMUNICATIONS ANNOUNCEMENTS AND PUBLIC COMMENT: The Town Manager announced that the North Andover Police Department will be holding an Open House at their new facility at 1475 Osgood Street, from 10:00 a.m. to 3:00 p.m. the public is invited to tour the building. CONSENT ITEMS: The Museum of Printing Arts Fair Sunday, June 19, 2011 Frank Romano requested permission to hold the Annual Printing Arts Fair on Sunday, June 19, 2011 from 10:00 a.m.—4:00 p.m. William Gordon made a MOTION, seconded by Rosemary Smedile, to approve an event permit for their Annual Printing Arts Fair on Sunday, June 19, 2011 from 10:00 a.m. to 4:00 p.m. and to allow for the closure of Massachusetts Avenue from Osgood Street to the round-about. Vote approved 5-0. The North Andover Lions Club Annual Circus July 5 and 6, 2011 The North Andover Lions Club requested permission to hold their annual fundraiser Circus at the practice fields in the rear of the Middle School on July 5& 6, 2011 and permission for signage, located at First on Main and a banner on the Middle School Property. Rosemary Smedile made a MOTION, seconded by Tracy Watson, to approve an event permit for the North Andover Lions Club to hold their annual Circus on July 5 &6, 2011 and consent for signage at various locations in North Andover. Vote approved 5-0. Board of Selectmen Minutes May 9, 2011 2 LICENSING COMMISSIONERS: Donald Stewart made a MOTION, seconded by William Gordon, to move into Licensing. Vote approved 5-0. Valley Coach of North Andover—Livery License, 407 Mass Ave. Mark Walsh Donald Stewart made a MOTION, seconded by William Gordon, to grant approval to Mark Walsh of Valley Coach of North Andover for a Livery License for up to two vehicles operating from 407 Mass. Ave. subject to adherence to all applicable laws, bylaws, rules and regulations. Vote approved 5-0. Common Victualler License—Entertainment License—"A Haute Dish Cafe" Jennifer Broberg Donald Stewart made a MOTION, seconded by Daniel Lanen, to grant"A Haute Dish Cafe"Jennifer Broberg, owner, 2-4 Johnson Street a Common Victualler and Entertainment License subject to adherence of applicable laws, bylaws, rules and regulations. Vote approved 5-0. Merrimack College requests a One-Day Wine & Malt License May 16, 2011 Donald Stewart made a MOTION, seconded by William Gordon, to grant Merrimack College a one-day Wine and Malt License on May 16, 2011 from 3:00 p.m. to 5:00 p.m. in the lobby of the Rogers Center subject to adherence of applicable laws, bylaws, rules and regulations. Vote approved 5-0. Yente, LLC, 1503 Osgood Street, Change of Manager Rosemary Smedile made a MOTION, seconded by Donald Stewart, to approve a change of manager for Yente, LLC located at 1503 Osgood Street from Tracy Adley to Alireza Amini Pakdaman; subject to adherence of applicable laws, bylaws, rules and regulations. Vote approved 5-0. i Donald Stewart made a MOTION, seconded by Rosemary Smedile, to move out of Licensing. Vote approved 5-0. OLD BUSINESS: Preparation for Annual Town Meeting: June 7, 2011 The Town Manager said that additional information was brought to his attention regarding Article 16, Adoption of Massachusetts General Laws Chapter 64L Section 2(a) Local Meals Excise Tax. The payments are made quarterly and the deadline for the first quarterly payment would be May 31, 2011. Because of the delay of Town Meeting to June 7, 2011 to adopt the Article, instead of collecting 10 months of revenue, the Town would only collect 7 months of revenue, which would reduce the expected revenue from $344,386 to $241,070 a change of$103,315. Once the local option has been adopted after the first year, communities would receive a full year of revenue. The Revenue Fixed Cost Committee will be meeting on May 11, 2011 to review the Budget and additional information. Note: Daniel Lanen and Rosemary Smedile recused Note: The gavel was turned over to William Gordon as acting Chairman Recruitment for Permanent Police Chief The Town Manager informed the Board that the Town received three proposals for conducting the Assessment Center for the permanent Police Chief, but prior to the selecting the consultant the Board needed to determine criteria for the search and candidate qualifications. The Town Manager requested the Board vote on minimum qualifications regarding the Scope of Search, Years of Experience, Police Rank, Supervisory/Management Experience, and Education. The Board discussed various scenarios and voted as noted below. Tracy Watson made a MOTION, seconded by Donald Stewart, to vote the permanent police chief should have a minimum required Bachelor's Degree and/or Master's Degree preferred. Vote approved 3-0. Board of Selectmen Minutes May 9, 2011 3 Donald Stewart made a MOTION, seconded by Tracy Watson, to vote the permanent police chief should have a minimum of 3+ years of Supervisory/Management Experience. Vote approved 3-0. Tracy Watson made a MOTION, seconded by Donald Stewart, to vote the permanent police chief should have the minimum rank of Police Sergeant. Vote approved 3-0. Tracy Watson made a MOTION, seconded by Donald Stewart, to vote the permanent police chief should have a minimum of 10+ years of police experience. Vote approved 3-0. Tracy Watson made a MOTION, seconded by Donald Stewart, to vote to limit the Scope of Service to an internal candidate with no caveats. Vote approved 3-0. Note: Daniel Lanen and Rosemary Smedile returned. TOWN MANAGER'S REPORT: On Tuesday, May 3, 2011, Town Engineer Gene Willis and the Town Manager attended a presentation by Merrimack College civil engineering students on ways to improve the intersections of Main and Elm Street and Main and Green Street which is a project the DPW is planning on moving forward with in the near future. On Wednesday, May 4, 2011, a division and department head meeting was held to prepare for the upcoming Annual Town Meeting and to hear a presentation from an outside speaker on how to hire the best people. ADJOURNMENT: Tracy Watson made a MOTION, seconded by William Gordon, to adjourn the meeting at 8:15 p.m. Vote approved 5-0. Adele J. Johnson Administrative Secretary William Gordon, Clerk of the Board CONFIDENTIAL Not A Public Document BOARD OF SELECTMEN EXECUTIVE MINUTES MAY 9, 2011 EXECUTIVE SESSION: The Executive Session convened at 7:00 p.m. ATTENDANCE: The following were present: Chairman Daniel Lanen; Clerk William F. Gordon; Tracy Watson, Licensing Chairman; Rosemary Smedile; Donald Stewart; Town Manager Mark Rees. Donald Stewart made a MOTION, seconded by William Gordon, to move into Executive Session to discuss Negotiations with Non-Union Employees and to Review Executive Session Minutes for Release. Roll Call vote: William Gordon yes, Rosemary Smedile yes, Donald Stewart yes, Tracy Watson yes, Daniel Lanen yes. Vote approved 5-0. Chairman Daniel Lanen declared that an open meeting may have a detrimental effect on the bargaining position of the Selectmen. Note: Daniel Lanen and Rosemary Smedile recused from Executive Session. Negotiations with Non-Union Employees The Town Manager presented a proposed temporary employment agreement including recommended salary with Lt. Paul Gallagher for his services as Interim Police Chief. Lt. Gallagher has agreed to these terms and the salary level. The Town Manager asked the Board to review the agreement and if satisfied to vote to approve the agreement. The employment agreement shall commence on Sunday, May 15, 2011 and shall be in effect until the appointment of a Permanent Police Chief. The annual base salary is$90,600, in addition to his base salary he shall receive education incentive equivalent to 20% of his base salary$18,120, holiday pay$5,227, Longevity $1,125 for a total of$115,072. Tracy Watson made a MOTION, seconded by Donald Stewart, to approve the employment agreement including the recommended salary for Interim Police Chief Paul Gallagher. Vote approved 3-0. Executive Session Minutes for Release Selectman Gordon and Smedile have reviewed Executive Session Minutes from 2002-2010 and have asked the Board to review them for Public Release. Selectmen have not had a chance to review them and asked to TABLE this until a future meeting. ADJOURMENT: Tracy Watson made a MOTION, seconded by Donald Stewart, to move out of Executive Session. Vote approved 3-0. Respectfully submitted, Adele J. Johnson, Administrative Secretary Rees, Mark From: Mabon, Jack[JMabon @welchs.com] Sent: Wednesday, May 18, 2011 1:11 PM To: Rees, Mark Subject: Windrush Farm Steering Committee Mark, I wanted to get started with the Windrush Farm Steering Committee,as required by the Trails License in our CPA acquisition from last year(see below). The Conservation Commission has appointed me as their representative, and Jennifer Hughes has agreed to serve as the Town staff member if appointed by the BOS. WFTE identified their three people last fall,and I can get an update from them if there are any changes. Can you work with the BOS to identify: 1. The BOS member to chair the committee, 2. The BOS appointed NA resident to sit on the committee, and 3. The BOS appointed NA Town staff member. Hopefully we can get this resolved before agendas and resources become scarce prior to Town Meeting. Jack Mabon (978)371-3796 12. STEERING COMMITTEE. Licensor shall, as soon as is practicable, create a Windrush Farm Steering Committee (the "Steering Committee")for the purpose of advising the Board of Selectmen and Conservation Commission on the condition, maintenance, and uses of the Property. The Steering Committee shall be composed of(i)two members of the public who are residents of North Andover,one appointed by the Board of Selectmen and one appointed by Licensee's Board of Directors; (ii)one member of the Board of Selectmen,appointed by the Board of Selectmen; (iii) one member of the North Andover Conservation Commission; (iv)two staff or board members of the Licensee, appointed by the Licensee's Board of Directors; (v)one Town staff member appointed by the Board of Selectmen. The member of the Board of Selectmen shall serve as the chairperson of the Steering Committee. The Steering Committee shall advise the Board of Selectmen and Conservation Commission on any proposals to revoke, extend, or amend this License, and should help the Town to formulate hunting plans for the Property, if any are needed. At such time as Licensee seeks a renewal of the License,the Steering Committee shall prepare a report for the Board of Selectmen as described above. The Steering Committee shall attempt to meet at least once a year at the North Andover town offices. The Steering Committee shall comply with requirements of the Open Meeting Law and the Commonwealth's Conflict of Interest Law, G.L. ch. 268A. ��c h��°r,il, ,oc,vi f� y of '!��t�tr.,.Wkcu Vrrr;d ed r��>tr 1f�c; IVI<a � t�,iiw�ic.�J¢17at iror>ct to'110 drom uunucipah oltw w:, Mri+{o1Cic',ials<iw tamP>lu c(=c(nfk For i o)ow inIfoiniatinII talc.as(( wfet to tt�'B;2-//w sec stata°�P.: ,.�a lt�oa,�ua i� .&n,�,i;i, , . 07.a.._... t r; cow ides Clrc.r;iNirOMimici h low ptioltkiq this cftoaii 1 � NoerN q Q tt� o iyT.yQ f i ^ n�AnTo TP�.(cJ �9SSACHUSEt TOWN OF NORTH ANDOVER OFFICE OF THE TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 Joyce A. Bradshaw, CMMC Telephone(978)688-9502 Town Clerk Fax (978)688-9557 E-mail jbradshaw@townofnorthandover.com MEMORANDUM TO: Daniel P. Lanen,Chairman and Members of the Board of Selectmen Mark H. Rees,Town Manager FROM: Joyce A. Bradshaw,CMMC,Town Clerk.- SUBJECT: Board of Selectmen Re-Precincting Approval DATE: May 19,2011 I have enclosed information regarding the process the Board will need to follow to implement the required mandates for Re-Precincting. The recommendations provided were offered to the Secretary of the Commonwealth's Office and all possible changes to boundaries made. Important points to consider are: 1. All precincts must be 4,000 or less in population 2. All deviations between precincts must be 5% or less. 3. All precincts must be compact and contiguous on the map 4. All precincts must be bounded by centerlines of street or other visible boundaries. The Federal Census population of 28,352 as of April 1, 2010 is reflected in the map I will present. As drawn, it is in balance and complies with the appropriate legal criteria as verified by the Secretary of State's Office. The map has been available for inspection in the Town Hall. In recognition of precincts that have been identified as potential growth areas, the precinct lines can only reflect April 2010 numbers. The timely submission of our maps and approval will allow the LEDRC (Local Elections District Review Commission) to have sufficient time to review and finalize. Your approval of the final maps must be completed with map and metes and bounds descriptions no later than June 15, 2011. I would recommend that if the Board is satisfied that the map as drawn represents the appropriate precinct boundaries a vote to accept the map as presented by the Town Clerk be taken June 6, 2011. I have sent copies of the map to all our representatives and will update them. State Representative and Senate District designations will be part of the Redistricting process in the Legislature. The time frame for this is totally dependent on legislative actions. The map has been available in Town Hall for inspection and I will have the map at your meeting Monday. Enclosed are smaller maps of Version 2 for your review. There is still an opportunity to have minor changes made by the map coordinator for the Secretary of State. Please do not hesitate to contact me any time with questions or concerns. Enclosure JAB Cc: Mark H. Rees Board of Registrars HAVERHILL e �Iown- of METHUEN _ o P fV LAWRENCE tf BOXFORD leg Map Prepared for the Town of North Andover Courtesy of William F.Galvin,Census Liaison 5, Population is based on the of-I U.S.2010 Census block-level data. f za _ L Minimum 5% �TargetPOpulation `Maximum 3,367 3 544 _ 3,721 ! - Precinct Boundaries-- - ©_ _ — North Andover Current Precinct Boundaries Precinct/Ward 2010 Population Variance ANDOVER i --.3,641 2.74, e i � .; \�.�z _±=J660 3.27 3 602 1,64 t - 4 i 3,378 4.68 5 3,701 4.43 s 31576 0.90 3,391 -4.32 e 3,403 -3.98 2010 Population--28,352 \ MIDDLETON tioundarles effective December 31,2011 0.5 0 0,5 1 1.5 miles Rees Mark From: Bradshaw, Joyce Sent: Thursday, 19, 2011 1:11 PM � To: Reas, Mark; Johnson, Adele Subject: FVV North Andover ReprocnoUng Version 2Map Attachments: 2010 NorthAnd ePreci ncti ngjown Map.pdt2O1O NodhAndovah/2BL[)CK � 25OO8RePreuinctin8_TovvnK0ep.pdf This is a copy mf the e'rnaflfrmnn the state. From: FrisO|i, Patricia (SEC) Sent: Wednesday, May 18' 2O115:41PM To: Bradshaw, Joyce Cc: Barr, John (SEC) Subject: North Andover RaprecincUngVersion 2 Map Hi Joyce, Please find attached Version 2of North Andover RepreuinctinQ draft map. This version features: -Low ending of precincts 4. 7 and 8 for growth. -Adjustments made in precincts 1. 2 and Oto absorb that extra population. -Adjustment from precinct 3bo2 to balance the precincts oo closely os possible, with the above constraints. Please review this map and let ua know if these lines (Version 2)are the ones you would like to proceed with for your final map package. Once we get your go ahead, we will begin producing the final map, the block listing and a rough draft of your legal description. Alternatively, please let us know if you would like to schedule another edit session with me. | have attached a block map showing the census blocks and population values of North Andover to assist you in this decision. @inuena|y. Patricia Frieo|i Census Specialist Office of the Secretary of the Commonwealth One Ashburton P|gma. 18th Floor Boston, yWAO210O 617-878-3852 p|wo"mxeme mar;oowo~uo Seo�m��m,�e�ox^mo,sos�e"mmo«mn�mo`/enai|xmanx�pm*voi,�a/on.mxanu nm;a/op��,*/'�mm�^ p^, .vu� *�cn�wop/aasum�/m »e�xm^uua/ome�,mv^m/�xmnn�no�^o��, � � � 1 � TOWN OF NORTH ANDOVER BOARD OF SELECTMEN 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 f NORTH Daniel P. Lanen,Chairman William F. Gordon TEL. 978 688-9510 - A ) Rosemary Connelly Smedile * y FAX(978)688-9556 Donald B. Stewart Tracy M. Watson "SS,�HUSE` ADDENDUM TO BOARD OF SELECTMEN & LICENSING COMMISSIONERS AGENDA May 23,2011 TOWN HALL MEETING ROOM 120 MAIN STREET III. COMMUNICATIONS AND ANNOUNCEMENTS D. The North Andover Patriotic Observance Committee voted to dedicate this year's Memorial Day 2011, in Memoriam to James M. Cassidy a WW II Veteran. We respectfully requests the Board of Selectmen present a Proclamation recognizing James M. Cassidy for his outstanding and dedicated service to his Country and community. E. The North Andover Patriotic Observance Committee respectfully requests the Board of Selectmen present a Certificate of Appreciation to Command Master Chief John E. Ratka, US Navy for his dedicated service as the Veterans Northeast Outreach Center Executive Director. NORTH B6 �ED Director of Veterans'Services 0 0 North Andover- Boxford District 120 Main St CA North Andover, MA 0)1845 ACHUS A C HU Date: May 19, 2011 To: North Andover Board of Selectmen Via: Town Manager Mark Rees Assistant Town Manager Ray Santilli Subject: Recommendation for Certificate of Appreciation Dear Board of Selectmen, The North Andover Patriotic Observance Committee voted to dedicate this year's Memorial Day Parade and Ceremony in Memoriam to WWII Veteran James M Cassidy. We respectfully request the Board of Selectmen Proclaim that Memorial Day 2011 be dedicated in Memoriam to James M Cassidy as outlined in the attached Proclamation. Additionally, the following information is provided in support of recognizing John Ratka for a decade of sustained superior performance as the Veterans Northeast Outreach Center, Executive Director. In addition to his exceptional leadership at the Vet Center, John Ratka has provided significant resources and personnel to this office during the two month period when I was out on medical leave. These resources helped ensure the benefits and services for North Andover Veterans and Spouses continued uninterrupted. Attached is a summary of the programs and services offered at the Veterans Northeast Outreach Center. For your consideration I have also attached a recommended Certificate of Appreciation. We would like the Board of Selectmen to present the certificate on Memorial Day. In addition to the COA, I have five military service emblems for the Selectmen to present to Mr. Ratka. The certificate and emblems will be on permanent display at the Veteran's Outreach Center reflecting North Andover's continued support and appreciation of the outstanding services they provide to the Veterans in our community. For additional information or questions please call me at(978) 688-9525. Sincerely, Chief Edward V. Mitchell, US Navy (Ret) Director of Veterans Services North Andover/Boxford District Veterans Northeast Outreach Center 10 Reed Street Haverhill, Massachusetts 01830 Phone: 978-372-3626 Fax: 978-372-5197 Since opening their doors in 1985, the Veterans Northeast Outreach Center, located at 10 Reed St. in Haverhill, has added staff and expanded their programs to better serve Veterans and their families in the Greater Merrimack Valley. Established iii Lawrence, the Center started as a storefront operation, staffed largely by volunteers, to provide support and advocacy to Vietnam Veterans. Through the years,the focus of the Center has expanded to accommodate over 36,000 Veterans in our region who are eligible for care. They provide a continuum of care to Veterans and their families, from the very basic food and shelter needs to advocacy, information, referral, career, and education services. Counseling services include personal, family and group counseling related to Veterans issues as well as crisis intervention. The Center also offers community based Reach Out programs such as Vietnam Veterans Peer Support Group, The "Vet/Spouse Reach Out" Program and Vet-Day Activity Center: Established in January 2001,this day program is among the most unique of all VNOC programs. The program provides a structured environment where disabled Veterans can participate in recreational activities, work trawling, group support and other activities that are both satisfying and challenging. Other services provided include; Health Care, Advocacy and Legal Assistance, Continuing Education & Job Search. The Veterans Mansion The Veterans Mansion is a substance-free transitional housing program serving Veterans in Haverhill and the Merrimack Valley. Established in 1997 in the Acre neighbourhood of Haverhill, the beautifully renovated mansion is home to 22 Veterans who have made a commitment to paying rent, working and/or attending school, maintaining their sobriety, and contributing to the life of the community. The program has an established culture and operates in the truest sense of"Vets helping Vets." To date, more than 100 Veterans have transitioned from homelessness to independent living thanks to the support they received here. The Veterans Campus Residential Program Established in fall 2001, the Veterans Carnpus Residential Program offers 25 transitional housing units at the Veterans Campus in the Mt. Washington neighbourhood section of Haverhill. Here, Veterans receive case management and ongoing support as they transition from homelessness to independent living. As is the case at the Mansion, these transitional housing units are available to Veterans who fit the US Dept. of Housing and Urban Development's definition of homelessness and are willing and able to pay rent, make a commitment to work and/or attend school, maintain sobriety,, and contribute to the life of the community. However, unlike the Veterans Mansion. the Veterans Campus is staffed 24 hours a day. Also unique to this program is a food service component. This program is funded partially through the Mass. Dept. of Veterans Services, US Dept. of Housing and Urban Development, US Dept. of Veterans Affairs, resident rents and private sources. For additional information. please call 978-372-3626 or your local Veteran's Service Officer. Town of North Andover Commonwealth of Massachusetts PROCLAMATION WHEREAS James M. Cassidy graduated Worcester High School in early February 1944 and upon turning age 18 was inducted into the U.S. Army on May 15th 1944 and as a member of an aggressive machinegun squad with the 274th Infantry Division in the European Theater of Operation he greatly contributed to the overall successfulness of the Battle of the Bulge; WHEREAS James M. Cassidy's courage under fire earned him the Combat Infantry Badge, Bronze Star Medal, WWII Victory Medal, the Distinguished Presidential Unit Badge and the European African Middle Eastern Theater Campaign Ribbon with two Battle Stars; WHEREAS after serving his country with honor, courage and distinction James M Cassidy Married Lorraine W. Verrette and together raised two Daughters and three Sons while continuing his commitment to service as Commander of the American Legion Post 219, standing member of VFW Post 2104, Board member for North Andover Council on Aging and a Founding member of the North Andover Taxpayers Association; WHEREAS it is most fitting and proper to honor and recognize James M. Cassidy for his outstanding and dedicated service to his Country and community; THEREFORE we, the North Andover Board of Selectmen, do hereby proclaim, and the cleric shall duly record, that Memorial Day 2011, is Dedicated in Memoriam to James M. Cassidy; so proclaimed by vote of the North Andover Board of Selectmen on this 30th Day of May 2011. Daniel Lanen, Chairman North Andover Board of Selectmen Certificate of Appreciation Presented to Command Master Chief john E 1#tka, VS Navy (W§t) In recognition of a decade of sustained superior performance as the Veterans Northeast Outreach Center E. ecutive Director. Tour tireless dedicated commitment to improve programs and services provided to Massachusetts Veterans and theirfamilies continues to raise the standards for other States in the union to emulate. Your exceptional leadership and inspirational drive reflect the true spirit of(Patriotic valuesandresponsble citizenship. We thankyou for your dedicated service and"present you with the five-mil tart' service emblems representing` the Veterans you so p`roud(y serve. 1tesented this 30th Day of.flay 2011 Presented 6y the Danie(Lanen, Chairman North Andover Ooard of Selectmen TOWN OF NORTH ANDOVER OFFICE OF TOWN MANAGER 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 OORTH Mark H. Rees Telephone (978) 688-9510 Town Manager p FAX (978) 688-9556 1iy �qAT/o f',�'(cJ SSACNUs ',.... May 24, 2011 Kate Rozzi Fun Run Co-Chair Thomson School/PTO Waverly Road North o®e , MA 01845 Dear Ms ozzi: I am please to inform you that the Board of Selectmen approved your request to hold the Thomson School Annual Fun Run road race. This event will be held on Thursday, June 9, 2011, from 5:00 PM. — 6:30 P.M. Town departments are available to assist you with your needs during the race to provide safety for all children and adults involved. If you have any questions or need any further assistance, please don't hesitate to contact this office or any of the town departments. Sincer y, ark . Rees Town Manager /aj j cc: Police Department, Interim Chief Paul Gallagher Department of Public Works, Bruce Thibodeau, Director Fire Department, Chief Andrew Melnikas Enclosures POLICE ♦ o o a o T D E P A R T M E N T `L;�=.--`' "Corrrrrrunift/�'artnersft.ij�" '� To: Adele Johnson, Administrative Secretary From: Lt. John Carney Date: May 18, 2011 RE: Thomson School Fun Run The Police Department recommends favorable action on the request from the Thomson School PTO and Kate Rozzi to hold their annual fun run June 91h using the streets in the Thomson School neighborhood as outlined in the attachment. The Police Department will have officers in the area during the run and I will work directly with the organizer on safety issues. 1475 OSGOOD STREET, NORTH ANDOVER, 11ASSACHUSETTS 01845 Telephone: 978-683-31.68 Fay;: 978-686-1212 NORTH H �AAto�FP,y�y SSACHU`'�� INTEROFFICE MEMORANDUM DATE: May 17, 2011 TO: Adele Johnson, Administrative Secretary' FROM Bruce Thibodeau, Director of Public Works CC: RE Annual Fun Run The Division of Public Works has no objection to the request from Kate Rozzi to hold the annual Thompson School Fun Run on Thursday, June 9, 2011, beginning at 5pm and finishing at approximately 6:30pm. If they need any assistance from the DPW, please have them contact my office. TOWN OF NORTH ANDOVER Fire Department Central Fire Headquarters— Fire Prevention Office 124 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 NoRTf{ Andrew Melnikas CF q Fire Chief o� °°� Telephone (978) 688-959; FAX (978) 688-9594 Lt. F. McCarthy °°A,r,p.•*`�5 amelnikas%ca%to�anofnorthandovcr.com Fire Prevention Officer 9SSACHUSEt fmcca►-thy!u;townofnoirthandover.com Town Managers Office 120 Main St. North Andover, Ma May 19, 2011 Thomson School Fun Run Adele, The only concern of the Fire Department is notification of any street closures, detours or delays just prior to the race. Thank you, Lt Fred McCarthy Fire Prevention Thomson Elementary School 266 Waverly Road North Andover,MA 01845 978-794-1545 May 17,201 l Mr. Mark Rees Town Manager North Andover Town Hall 120 Main Street North Andover,MA 01845 Dear Mark, This letter is to inform you that the Thomson School Annual Fun Run Road Race is scheduled for Thursday June 0, 2011.The race will begin at 5:OOpm and finish at approximately 6:30pm I have attached a map displaying the route for both the kindergarten/l't grade dash and the 2"d-5`r' grade run. The entire course and each intersection will be monitored by parents and we will be working with the police department, fire department and DPW to ensure the safety of the children. We will be requesting saw horses from the DPW so that the intersections along the route will be blocked. The saw horses will be placed immediately before the race and removed immediately after the race. Additionally, a flyer will be delivered to each residence along the route by Tuesday June 6 informing them of the race times to allow for travel and parking. Thank you for your support of this great event. If you have any questions please do not hesitate to contact me at 508- 982-9395. Sincerely, Kate Rozzi Fun Run Co-Chair Thomson School PTO i ro y d, a�N Thomson School Kindergarten& I"Grade Dash Thomson School 2"d-5"'Grade Road Race I POLICE D E P A R T M E N T m..................,............,...,.... ., "CoitwitmityParbic)-ship" 'The office of Li „ry � CHIEF OF POLICE FHC 1'0WN MANAGE MEMORANDUM TO: Mark Rees,Town Manager FROM: Richard M. Stanley,Chief of Police RE: J.R.M Hauling&Recycling DATE: May 12,2011 Attached please find a donation in the amount of$5000.00 from J.R.M Hauling& Recycling Services,Inc. for the Police Department. It is my request that the Board of Selectman accept this donation to be designated for hydro seeding and landscaping the outside of the Police Department. Thank you for your assistance with this matter. (Attachment-2) 566 MAIN STREET,NOIZT'H ANDOVER,MASSACHUSETTS 01845-4099 Tclephone:978-683-3168 < Fax:978-685-0249 1935 ®Eastern Bank eo:mn.iuozltu eastembank.com Q MM a tng Hagt1 ,&Re c! ftd SerUICQS�Inc. 53-179-113 1800-EASTERN 3 179 113 1800 EASTERN —. 265 NEWBURY STREET PEABODY,MA 01960 Five Thousand and 00/100 Dollars Memo: DATE AMOUNT May 11, 2011 ***$5, 000 . 00 TPOTHE Town of N Andover ORDER OF i1 $� idt" AUTH RIZED G A URE , 112 0 1 9 3 5811' 1:0 1 1 30 1 7981: 06 00049399110 INTEROFFICE MEMORANDUM TO: Mark Rees,Town Manager DATE: May 4,2011 FR: Bruce Thibodeau,Director of Public Works CC: Ray Santilli,Assistant Town Managert/ Cathy Darby,Human Resources Director RE: Request to Replace the Water Treatment Plant Superintendent As you know, Dennis Bedrosian will be retiring as of July 20,2011 after 20 years of service to the Town. While he will be sorely missed we need to plan for his replacement. As a result, I am requesting your approval to begin the process to replace Dennis by advertising the position. Ray, Cathy, and I have met and have made minor changes to the position description and prepared a position posting. One change I am requesting is that the position be advertised as a Grade 14 rather than the current Grade 13. This is primarily due to the complex requirements and the level of certifications that is now required to run a water treatment plant, store tanks, and pumping stations such as those here in North Andover. Further, it is more in line with the other Department Managers in the Division who have similar responsibilities; the Town Engineer which is a Grade 14 and Operations Manger, which is a Grade 15. I would like to advertise the position next week so we can complete the process in time for Dennis to work with his replacement before he leaves. TO" DE NORTH ANDOVER DIVISION OF PUBLIC WORKS WATER TREATMENT PLANT 420 GREAT POND ROAD. 01 845-2909 BRUCE D. THIBODEAU. P,E. DIRECTOR Dettttis L. Bedrosian Telephone (978) 688-957= Strpet intetzdent Fa-Y,1978) 688-9575 I November 23, 2010 Mr. Bruce Thibodeau DPW Director I 384 Osgood Street j North Andover,MA 01845 Dear Mr. Thibodeau This letter is to inform you that I will be"retiring my position as Superintendent of the Drinking Water Treatment Plant as of July 20, 2011. It has been my pleasure to serve the Town of North Andover since September 24, 1990. I have taken part in and accomplished many projects that greatly benefited the Town's Water Department, including the construction and start up of the drinking water treatment facility and new water storage tanks. I will miss my job and the people whom I've worked with, but I am ready to do something else. lam notifying you now to allow the Town time to plan and budget well before my actual departure date. Dennis L. Bedrosian IT- Plant Superintendent, Drinking Water Treatment Rees, Mark From: Santilli, Ray Sent: Friday, May 20, 2011 9:44 AM To: Rees, Mark Subject: Fwd: Revised Evaluation for Water/Sewer Superintendent Attachments: TOWN OF NORTH ANDOVER WATER SUPERINTENDENT EVALUATION 52011.doc; ATT00001.htm Sent from my iPhone Begin forwarded message: From: Ronald Mullett<rgmullett a,comcast.net> Date: May 20, 20117:59:39 AM EDT To: "Santilli, Ray" <rsantill o)townofnorthandover.com> Subject: Revised Evaluation for Water/Sewer Superintendent Good Morning Ray, Attached is the revised evaluation for this position. It comes out a grade 14. The factor change being slightly more experience for the full responsibilities of the position. The change is within the guidelines of factor analysis for the position and is defensible. Please contact me if additional comments or questions. Thanks, Ron r)f 01ce 0,)eii,tmen 1,v�:n I i)ar o{I J O t"r of ,lo1� ,re „n!;lis r cc-0s.moo:more im http://www.sec.state.ma.us/pre/preidx.htm Esc coi,si�? i _.em,ic rnt f ,i .�f;ri tiity ihlo ., 1 TOWN OF NORTH ANDOVER POSITION DESCRIPTION SPECIFICATIONS SUPERVISORY, PROFESSIONAL, SALES AND ADMINSTRATIVE POSITIONS (Usually exempt jobs) POSITION TITLE: Water Treatment Superintendent Division: Public Works Dept. Water/Sewer POSITION SUMMARY Responsible for overseeing the operations of the Town's Drinking Water Treatment Plant including: maintaining integrity of plant and related components; ensuring compliance with State and Federal drinking water regulations; operation and maintenance of sewer pumping stations; ensuring compliance with OSHA regulations; other safety rules and regulations; and other similar duties necessary to the functions of the Water and Sewer departments. ESSENTIAL FUNCTIONS 1. Responsible for the effective direction and operations of the Drinking Water Treatment Plant including maintenance, operations, quality control; implementation of plant design and upgrade changes. 2. Responsible for securing and maintaining outside Potable Water Station including storage tanks, pumps, control valves, and related components. 3. Oversee the maintenance and operation of Town owned Sewer Pumping Stations. 4. Develop, submit for approval, and manage approved and assigned components of Water and Sewer department budgets. 5. Review and keep abreast of state and federal water quality compliance reports, DEP annual watershed and sanitary survey reports and town's annual report. 6. Participate in source water protection, (Lake Cochichewick) and its tributary systems, as well as lake ecosystem studies to understand and reduce/eliminate nutrient pollution. 7. Coordinate the purchase of equipment and supplies. 8. Keep abreast of developments in field of endeavor. 9. Participate in hiring; train, instruct, assign and evaluate work of staff as to Town's and department's policies and objectives. Monitor and evaluate performance; make effective recommendations to supervisor, HR, as to personnel matters affecting staff. Maintain good employee and employer relations. Perform other similar duties as responsibilities necessitate and/or as assigned or requested by supervisor. Evaluated Revised RGM 12/01 RGM 5/20/11 The description above represents the most significant duties of this position but does not exclude other occasional work assignments not mentioned,the inclusion of which would be in conformity with the factor degrees assigned. POSITION EVALUATION SPECIFICATIONS POSITION TITLE: Water Treatment Superintendent Grade: 14 Score: 475 SUBSTATIATING DATA FACTORS KNOWLEDGE DEGREE 4 POINTS 60 Broad knowledge of a discipline such as environmental science, chemistry, biology involving the use of a broad theoretical knowledge equivalent to a complete college education. EXPERIENCE DEGREE 6 POINTS 125 Over 7 years and up to and including 9 years of progressive learning experience. COMPLEXITY OF DUTIES DEGREE 5 POINTS 75 Performs difficult work to ensure water treatment facilities and operations comply with and maintain the quality of drinking water meeting standards and that the water supply is meeting the desired eco conditions needed for a continued quality water source. SUPERVISION RECEIVED DEGREE 4 POINTS 40 Under general direction, Director, Public Works, works from general objectives with little functional guidance. Rarely refers specific cases to supervisor unless clarification or interpretation of polices is involved. EFFECT OF ERRORS DEGREE 5 POINTS 60 Errors such as failure to ensure the quality of town's drinking water may result in very serious consequences to the public. CONTACTS DEGREE 4 POINTS 40 Outside and inside contacts carrying out water plant operations requiring the ability to influencing others where failure to do so may result in negative operation. CONFIDENTIAL DATA DEGREE 4 POINTS 20 Works with confidential data such as water purification, contamination potential issues which if misinterpreted may cause undo public concern and result a detrimental situation for the Town. MENTAL OR VISUAL DEMAND DEGREE 3 POINTS 15 Part time concentrated and part time normal and visual attention in duties performed. Concentrated attention in tracing contamination problems, eco problems and concerns, etc. WORKING CONDITIONS DEGREE 2 POINTS 10 Good working conditions. Some exposure to outside elements in construction oversight which makes conditions less than usual office. CHARACTER OF SUPERVISION DEGREE 3 POINTS 20 Direct supervision of a department with responsibility for results in terms of costs,methods, and personnel. SCOPE OF SUPERVISION DEGREE 2 POINTS 10 Responsibilities for over 2 but seldom over 10 full time person equivalents. 'I V TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER_, MASSACHUSETTS 01845 i f NORTH Joyce A. Bradshaw,CMMC �� b oA Telephone(978)688-9501 Town Clerk, * * FAX (978)688-9557 �SSACHUSE� MEMORANDUM TO: Tracy Watson, Chairman Licensing Commission Members of the Board of Selectmen Mark Rees, Town Manager FROM: Karen A. Fitzgibbons, Asst. Town Clerk Noel DATE: May 18, 2011 SUBJECT: One Day All Alcohol License Attached please find an application for a One Day All Alcohol License from Steven Beauvais, representing the Essex Art Center, 56 Island Street, Lawrence, MA. The event is the Center's Annual Fundraiser"New Paint" and is to be held on Saturday, June 4, 2011 from 6 pm to 11 pm at Osgood Landing, 1600 Osgood Street, North Andover, MA. A favorable recommendation is included from the Police Department. The $100 all alcohol fee has been paid. Please do not hesitate to contact me if you have any questions or concerns. ' Tho commonwealth ofMassachusetts � Town o[North Andover | Application for License (General) License Fee: Date: |()Tn[LICENSING xVTH0R}lT D`euoomz.An�x^nb!oppomuxoUpouciouovruume with the provisions o[ou Statues noumuUu^xn: NAME OF ESTABLISHMENT __�._,�/���__�l���--'!_��'� '��.��_______ _________________ - 0YVKEK/?4���OEK _�.�����_�� �t''.�_��__,rcy������_�cz�____�'-----�- -' (Hill Name^/ r"o"v.o,m..x Colporatioll Making Application) State Clearly Purpose For Which License iu STATE PURPOSE/TYPE 0[ LICENSE '_- � = � � - Requested --- HOURS OF' /~ //}n� P14 Give Location by Street S-, OPERATION:_ Number AODK63S� ���_�._______ -__- NORTH AND0YEK, K1AO|:45 TEifPH0NEA it) said Town of North Andover in mzunaoce with the rules arid regulations made under nutho,il� o[said statutes. I certify under the penalties of perjkiry tha( l. to the best ofiny kiwMedge an(i belief. haVe file(i all .,late t',Jx rCtLlmsand w@�|x^�taxes m4vimdh!|uv,mwcUmnithhoWio8 and umixinachi|dmppon / - -^---- � � R� OK_ _S}� 1K[u �|�N�TUKI � -ate Officer ~Sign*orcnJindiv\doo| or Corporate N w n� By: Corpo (Mandatory) (y4undotory. i[Applicable) PROVIDE ONE 0DTUE OTHER 0-/_��'�^'�/xL�'��- __ ** Social Somh\y# (Yo|uutary) or Federal lduohficuhnn Number ~ This License-ill not he iuv,d unless thi.s certification duu,c`u/igocd hy the applicant. ~^ Your sL)cia| Security Number-ill he kmish*Jw the Massachusetts Department v[K,,e^`nmdounnincxhut,m,`^o have met tax 0iogo,wu payment"b\)gmi^^` 0/ ill be subject to license suspension or revocation. mi,xqve�um^� Under(lie xudwh� ^[w" ,0| m ^z uu wk . 8en:ivrd __ . l0 PLEASE �/0 _[ Time __._---- - Signature of Applicant ,�ro� �� ~ _ '. /~ Amo"u H0ML ADDRESS_ ^ M4- Approved . 20 Address License Granted e s s e x a non-profit art organization with a mission to inspire and nurture the diverse artistic potential of o � v 56 Island Street Lawrence, MA 01840 www.essexartcentenorg tD 0 o Executive Director April 26,2011 0 Leslie Costello c Assistant Director Town of North Andover Helen Tory To Whom It May Concern: 0 Program Director c Maria Sanchez Kouassi Essex Art Center is a non-profit organization located in Lawrence MA. We provide art instruction to the Greater Lawrence area. n Special Projects sy Cathy McLaurin On Saturday June 4,2011 we will be having our annual fundraiser"New Paint"at Osgood Landing 1900 uU)i Osgood Street,North Andover.The fundraiser will begin at 6pm and end at 1 1 pm. The event will be o catered b Two Chefs are Better than One and Steve Beauvais is obtaining the necessary permits for O Office Assistant Y � Sara Hidalgo Essex Art Center.Bartending Services of New England are providing the bartending services for the o evening and Shawsheen Liquors is providing the beer and wine. We are planning a gala event. X 0 Board of Directors Thank you for your help in making this event a success. O Diane Collier Sincerely, :3 Andrew Duncan Jennifer Hart f: CL Karen Herman � �r Ron Hilbink, Chair Leslie Hopkins Dick Purinton (D Susan Russell X David Tory 6 Robin Sung o Pamela Yameen Essex ,Art Center - making the creation and enjoyment of art accessible to all. A ® FMB B 9�MY bm POLICE a® ®® r e ® 9--.-a M �,� ® .� pump- =- D E P A R T M E N T J[( t "Community Partnership" To: Karen Fitzgibbons From: Lt. John Carney RE: One Day Liquor License—Essex Art Center The Police Department recommends favorable action on the request for a one day all alcohol license from Steven Beauvais, Essex Art Center, to host a fundraiser at 1600 Osgood Street on June 4, 2011. Bartending Services of New England employ TIPS certified servers. 1475 OSGOOD STREET, NORTH ANDOVER., MASSACHUSETTS 01845 Telephone: 978-683-3168 Fax: 978-686-1212 0 1y The Barlending Service fNew England,LLC P.O.13ox 325.Middlehoro,MA 023-16 William H.fuller -owner Office—503-947-9520/508-92;-17.14 Cell—508400-1709 Fax—503-923-3784 Email—bilhihhebartendingwr ice.coni Date: April 26. 2011 (Revisions) CONTACT: Steven Beauvais Two Chefs Catering (978) 970-0212 Phone (978) 805-0511 Fax Ste vefa:twochefsfood.com FUNCTION DESCRIPTION: Essex. Arts Center Fundraiser CLIENT NAME.: Two Chefs Catering Gi 1EST•S: 350-400 D� TE: June 4, 201 1 LOCATION: Osgood Landing Andover, MA HOURS: 6:00-1 0:00pm/Staff to arrive at 4:30 pm SERVICE TO INCLUDE: This is a ful: cash bar proposal with disposables. We will provide two (2) double bars stocked with those items listed on the attached addendum. We will provide four(4) TIPS Certified Bartenders for this event. The uniform will be smart casual: Black Button Down Long Sleeved Shirt. Black Pants_ Black Shoes. Caterer to provide table and linen. COSTS: tabor: Four (4) Bartenders at $125.00 for a total of$500.00 (WAIVED) Set Up Fee: Flat Fee of$175.00 (WAIVED) One Day License: Obtained by the Client The cost for :his service will be $0.00 Drink Prices: Mixed $6.00 Vti'ine $5.00 Beer $4.00 Soft Drinks $1.50 lwochefsc<<.terin�26 In con.cOcrotion fin-tireriving the_fixed costs, a letter of in kind donation in the antown of S6-5.00 is to behrcrvided big the nonhrgfit organizalion. In addition, ii,e it�ould like to s _ donate 20%of the gross bcn-sales to the Essex At7s Center or their nominee. I T_ERIVIS: If this proposal is acceptable, kindly sign where indicated below and return a cola- of the contract via fax to 508-923-4784. Thank you for your consideration! - ACCEPTANCE: The above proposal is satisfactory and is hereby accepted. The Bartending Service of New England, LLC is authorized to do the work as provided for herein above, Payment vt°ill be made as specified according to the terms above. /_=---- " —--- Date `I �or Two Chefs Catering ----- — --- ---- Date The Bartending Service of New England, LLC By William 1-1. Fuller, _Manager The Bartending Service reserves the right to refuse alcohol to any person or persons in i attendance. as deemed necessary. *' Any alterations or deviations from the above proposal involving extra costs, may be executed and will become art extra charge over and above this proposal. "The Barteruling Service reserves the right to request proper identification from any patron attempting to purchase alcohol *' The Barteriding Service reserves the right to the exclusive service of alcohol at the above described event. We also reserve the right to refuse alcohol to any person or persons who provide and/or consume their own alcohol w said event. e 1_\vochefscater1ng16 _ rissued: On Premise SSN: X On Premise SSN: XXX-XX-XXXX Expires: 3 3/3112010 Issued: 3/31/2010 Expires: 3/20/2013 2750324 D.C).B.: X r D.O.B.; X.X�UXXXX Iq#: 270322 STEPHEN FEMINO COREY SANTOS Po Box 425 Po Box 425 Middleboro, MA 02346-04: Middleboro. MA 02346-0425 For service visit us ontine at w1w'w.getti For service visit us online at www.gettips.00m Michael Marcantonio,64 Michael Marcantonlo,64 On Premise SSN: X +� Issued: 3131/2010 Expires: 3 On Premise SSN: X3(X-XX-XXXX It7 : 2750321 D.D•E-: X Issued: 3/3112010 Expires: 3/20/2013 ID#i: 2750320 fv).B.: XX1XXJXXXX ,TARED SANTOS Po Box 425 NICOLE PHILLIPS Middleboro, MA 02346-042 Po Sox 425 Middleboro, MA 02346-0425 For service visit us online at www.gettk Michael Marcantonio.64 For service visit us online at www.gettips.com Michael Marcantonio,64 SSN: XXX-XX-XXXX On premise Expires.' 3/2012013 Issued: 3/31/2010 D.O.B_: XXMMXXX II)#: 2750319 STEPHEN FERNANDES Po Box 425 Middleboro, MA 02?A612425 For service visit us antine at 0611-t3e"s corn Michael Marcantonio,64 V TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 NORTH of�t�RO e q�0 OL Joyce A. Bradshaw,CMMC o — A Telephone(978)688-9501 r FAX (978)688-9557 Town Clerk, �SSACHUSE't MEMORANDUM TO: Tracy Watson, Chairman Licensing Commission Members of the Board of Selectmen Mark Rees, Town Manager FROM: Karen A. Fitzgibbons, Asst. Town Clerk DATE: May 18, 2011 SUBJECT: Junk Dealer License Attached please find a completed "Application for a Junk Dealer" applied for by John Clifford, Clifford Jewelers, 109 Main Street, North Andover. Included is a copy of The Commonwealth of Massachusetts sales and use tax registration form. The application and license fees have been paid to the Town. The Police Department recommends favorable action on this application. Please do not hesitate to contact me if you have any questions or concerns. TOWN OF NORTH ANDOVER OFFICE OF LICENSING COMMISSION 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 I NORTH Tracy M. Watson Chairman O o� a. r Telephone(978)688-9500 i william F. Gordon ` " FAX (978)688-9557 Daniel P. Lanen Rosemary C.Smedile Donald B. Stewart �SSACHtIS�t Application for Junk Dealer or Junk Collector license Date 41` q ]j Applicant information: Applicant/ licensee name b 4�w C-1 Applicant/ licensee address f0 9 1Yy f� tW �+�'���� ° U-"c" Applicant/ licensee phone number C�2 Applicant/ licensee email i w iEl e O' ' Social security number —OR— Business FID number Q ko_71 Establishment information: �ti� lcf Establishment name Establishment address_._L1_q Establishment phone 1- Do g On site manager/ contact person For which type of license(s) are you applying? Check at least one of the following: o Junk Dealer (any person who deals or keeps a shop for the purchase, sale,or barter of junk,old metals,or secondhand articles) ❑ Junk Collector (any person who,by going from place to place, collects by purchase or otherwise,junk,old metals, or second hand articles, whether or not by previous contract or arrangement) 1 Check at least one of the following: El junk(any article or material that will no longer be used for its original intended purpose, but instead will be discarded,collected,stored,or sold for salvage,recycling,or conversion to another article,product, or material) M old metals (any metal wares, including but not limited to silverware,pewter, stainless steel,copper, or brass, or precious metals of extraordinary value such as gold,silver, etc) O secondhand articles (any item being re-sold for use that will maintain the original intended purpose of the product.This includes but is not limited to items such as clothing, furniture, antiques,household items, appliances, collectibles,etc.) What types of articles will be purchased, stored, &/or sold? C�o S t v t-C C c nS Where at the licensed address will the articles be stored, displayed, etc? fit Sw��� s ilJ N( tin to ro 3o L7 Massachusetts sales & use tax registration number °]6 6 2 o oO O Please Attach: A Site plan indicating location and dimensions of all proposed uses. A Copy of your DOR issued Massachusetts sales & use tax registration certificate 1 have received a copy of the Massachusetts General Laws and Town Of North Andover regulations (Chapter 127 of the Town Bylaws) governing junk dealers and junk collectors and have read these: (Si ratu, o plicant) (Date) I Junk dealer and junk collector licenses expire on May 151 annually. The annual fee for a junk dealer or junk collector license is $100. 2 I THE COMMQNWEALl OF MASSACHUSETTS ,EO DIPARIMINT CAF REVNUE DATA SERVICES BUREAU 3 _"� 100 f 1MBR?DGE STREET; BOSTON, AAA 02204 CERTIFICATE NUMBER SALES AND USE TAX REGISTRATION THE VENDOR HEREIN NAMED IS REGISTERED TO SELL TANGIBLE PERSONAL PROPERTY AT RETAIL, OR FOR RESALE, PURSUANT TO GENERAL LAWS, CHAPTERS 6414 ANDIOR 6,11, THIS REGISTRATION IS EFFECTIVE_ONLY FOR THE REGISTRANT AT THE LOCATION SPECiF1ED HEREIN.ANY CHANGE IN NAME OR ADDRESS RENDERS THIS REGISTRATION NULL AND VOID. JOHN P CLIFFORD 706501 .0000 IDENTIFICATION CLIFFORD JEWELERS NUMBER 109 MAIN ST NORTH ANDOVER MA 01845 05/06/88 ISSUE DATE 706-501-000 FED ID NUMBER DISPLAY - FOR CUSTOMER,;-TO SEE THIS R201STRATION NOT ASSIGNABLE OR TRANSFERABLE ' COMMISSIONER OF REVENUE POLICE — -�.— ISM NMI r r 0=1 1.0 1I D E F A R T M E 1V ,coirlinunity Pcirtnersh.ip" To: Karen Fitzgibbons, Assistant Town Clerk From: Lt. John Carney I RE: Clifford Jewelers Date: April 27, 2011 The Police Department recommends favorable action on the request from John Clifford, Clifford Jewelers, to be licensed to collect gold, silver and coins as outlined in the application. 1475 OSGOOD STREET, NORTH ANDOVER, MASSACHUSETTS 01845 Telephone: 978-683-3168 Fax: 978-586-1212 VC TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 f WORTH 9 =O`t t,,ao^a�aNO Joyce A. Bradshaw, CMMC F Telephone(978)688-9501 Town Clerk, FAX(978)688-9557 SSACHUSE i MEMORANDUM TO: Tracy Watson, Chairman Licensing Commission Members of the Board of Selectmen Mark Rees, Town Manager �,✓ FROM: Karen A. Fitzgibbons, Asst, Town Clerk� DATE: May 18, 2011 SUBJECT: One Day All Alcohol License Attached please find an application from Armen Jeknavorian for a One Day All Alcohol License for a Men's Club Fund Raiser at St. Gregory Armenian Church, 158 Main Street. The event is the 2nd Annual Cigar Night & Dinner in Memory of Fr. Vartan Kassabian. The fund raiser will take place on Thursday, June 16, 2011 from 6:00 pm to 11:30 pm at 158 Main Street. Since the event's main purpose is to support the church's renovation project, Mr. Jeknavorian is respectfully requesting that the Board waive the license fee of$100, which it has done in the past. A favorable recommendation is included from the Police Department. If you have any questions or concerns, please do not hesitate to contact me. • T]PS On Frem:v. SSN: XXr:XX-XXX s X•;.. %1:i:1'I nt,tt} 7:;:4.1:+.'.ti}"���rx�fi' Via' :tai 1/(212000 Expires: 1/12/20 r 2 2t"67:57 D.O.B.: XX/XX/XXy.< The Commonwealth of Massachusetts r,.' -�:n -leknav,)iian Town ofNorth Andover I bu;:unit AVU Glhplrnsfo d. MA 01824-3810 Application for License •,r ser.;ce visit us onlin: at www.gE-ttipq.com (General) License Fee: _ 'Date: •I'O TMs.LICVNSING AUTHORITY: I'hc unJersigncJ hereby applies for a license in ucCortlunce with the proviifons of the Statues relating theetito; NAME OF ESTABLISITMENT AR1n�dV��N hU cam OWNER/MANAGER �7M� RA1 _y (1:1111 Nnmc of Person,vim,,or Corporation MiMng Appliculion) state Cleurly Purpose For Which License is STATE. PURPOSF,/fYPL•-:OF LICENSE - Requested 1aJ` v�_.�u1v_A__� .56p HOURS OF Give Location by Street& OPERATION:1 po 36_��: 46 PW Number AapRESS•�5�rn��N s.� ____-.._. NORTI-1 ANDOVER MA 0A 01 R45 in said Town of Nofth Andover in accordance with the rules and regulations made under authority of said statutes. I certify under the penalties of perjury Out t,to the beat of my knowledge and bclicr,have tiled all stun tax r, rns and pidd all state taxes required by law,dS well as withholding andremitting child support. SIGNATURE�7�?R+ GORY 111 &Pell, OR-— SIGNATU� 'Signature of individual or Corporate Name By, Corporate OFTieer (Mandatory) (Mandatory, if Applicable) PROVIDE ONE OR THE O-rHER^_----- - ---.-.�. xs ) or Federal Identification Number 'This I.icellst>will not be'issued unless this certification clause is signed by the applicant. �• Your Sociul Sre:urity Number will bo Nrilkhed to tha Massachusetts Utparunent nI'Rewnuv to determine whcthcr you have met tax filling or wx payn I'll t obIigutlonv. Licensees who fail to correct their nun-tiling or d.airtquency will be 3ubiat to lieottse suspension or rvvucation. 'I his mqucat is made under the authority of Musa ''.l. Ch 62.Sccl. Received ?0-� PLEASf?SIG _— 'rune__ _ __.-___--- Signature of App scant A mount_ 10 HOME nuL71tESS.( �cffli—E►VZ�On �r Approved _i 20 Address O19oz� License Granted _ _ 20_._. t •d LSS68B98L6 dIJ01 Wdbztii 1102 90 RPW o rt y i �i t! Ift A, u$uu UOU, b UX41 t yb ,t�sr St. Gregory Armenian Apostot cChUM of Merrimack Valley �.9 158TH, Street'' North AncJove�,��M' aftu 6tts 01845 Reverend'Father°Karekin Bedounan Pastor May 6 2011 Town of North Andover Attn: Liquor Commission X120 Main Street North Andover, MA 01845 Dear Board of Selectmen; ,he,purpose,of this:letter into request a one day full'liquor license for our 2nd'Annual Cigar Night &Dinner in Memory of Fr. Vartan Kassabian;: Please see enclosed flyer. The event will take place on June il,6 at,our facilities located at,158 Main Street on Thursday,June 16`t". We are'kindly requesting that we be granted a full!�1�iquon'license for the event from the�l ours of 6 90,prn to 11:30;pm. A copy of,my Tips Certification ,eertif sate is 'attach it the application. As you may know,we,'have undertaken extensive renovations ofithe exterior of our facility to include landscaping which has certainly helped beautify the area and we are now in the process of renovating the sanctuary: In the past;the Board of.Seleetmen'has supported us Eby waiving the fee;associated with,previous applications and we thank you ..for your help..We respect fully ask that yrou copsider.waiving the fie fot this event as.well since it's main purpose is to support our renovation project. Pleaseifeel to call me during the'day 4978'.453-661;!6 ifyou have any questions regarding this event. Sincerely, Armen Jeknavorian; Men's'Club Chairman 'St. Gregory Armenian Apostolic Church of Merrimack Valley Telephone andFaxi(978)!,685-5038 E-mail: stgre9ory @saintgregory org! Web Site: www.saintgregory.org Ir in . � . ,. r Al hir� ' , z �Ste + , N vet t§k MAN p -=ny#1^i � t 3 YYykt4s,R0"+q'3*s'P' 13c f +c t i � t� r- r to m r �o-ea by ,r I X30 m 00—16u Sub Turd I n t . ire _ 1rz � 5 . 1YIr; n r Birk d. �" `+ ' tMW �rrr�rumi +arnc C€ pCtnxry Bar Sp ctq +_d L�iy� t i n u» era to ►; e err s u+ sL Hns ss'Lacey W U a' M s �a�sc��t�usetts Plsi p�urfse, ur t� kts end c�rf �-rrt you rservtin vn 1c .r I , .�� f . t Grey Minas�art 97 8 470,307 m it � COMO: , ne Rich irr 58.6 . 14" rici�ard� yse�ewe �rs,+Cflm' } S 7q Chu�ch,Of�ice.��978�68� 5p�8 6 POLICE — m 100ft—ow ow 100=--w E P A R r M E N r "Community Partnership., To: Karen Fitzgibbons From: Lt. John Carney RE: One Day Liquor License—St. Gregory Church The Police Department requests favorable action on the request for one day all alcohol license from Armen Jeknavorian, St. Gregory Armenian Apostolic Church, to hold a fundraiser at 158 Main Street on Thursday, June 16th. Mr. Jeknavorian is a TIPS certified server. 1475 OSGOOD STREET, NORTH ANDOVER, MASSACHUSETTS 01845 Telephone: 978-683-3168 Fax: 978-686-1212 May 10, 2011 The Eagle Tribune 100 Turnpike Street North Andover,MA 01845 Attn: Terri Please publish the following legal ad in the Eagle Tribune on EARLIEST DATE in the week of May 9 and a second publication May 16, 17, or 18, 2011: Town of North Andover Board of Selectmen Public Hearing Notice Notice is hereby given that the North Andover Board of Selectmen will hold a Public Hearing on Monday May 23, 2011 at 7:30PM in the Selectmen's Meeting Room, Second Floor, 120 Main Street, North Andover, MA 01845 to consider the renaming of Woodbury Lane to Woodbery Lane. For additional information please contact the Selectmen's Office (978)688-9510. Daniel P. Lanen, Chairman North Andover Board of Selectmen /Jab Bill to: Board of Selectmen 120 Main Street North Andover, MA 01845 Telephone: (978)688-9510 Rees, Mark From: Bradshaw, Joyce Sent: Tuesday, April 19, 2011 9:33 AM To: 'Thomas J. Urbelis'; Rees, Mark; Willett, Tim; Carol McGravey Subject: RE: NAME CHANGE-WOODBERRY LANE-LIND SCHRADER.pdf-Adobe Acrobat Standard Thanks. From: Thomas J. Urbelis,[mailto:tju @uf-law.com] Sent: Tuesday, April 19, 20119:36 AM To: Rees, Mark; Bradshaw, Joyce; Willett, Tim; Carol McGravey Subject: RE: NAME CHANGE-WOODBERRY LANE-LIND SCHRADER.pdf- Adobe Acrobat Standard Mark......... I recommend that 1. Notice of publication be given of a public hearing to be held by the Selectmen on the proposed change once in each of two successive weeks in a newspaper the last publication to be at least 2 days before the hearing.(It is not certain that such a notice is required for a public way, but I recommend it.) 2. Notice of the hearing be given to the DPW, Assessors and Planning Board 3. After the public hearing the Selectmen may vote the change Tom From: Rees, Mark [mai Ito:mrees townofnorthandover.com1 Sent: Monday, April 18, 20119:24 AM To: Bradshaw, Joyce; Willett, Tim; Thomas J. Urbelis; Carol McGravey Subject: FW: NAME CHANGE-WOODBERRY LANE-LIND SCHRADER.pdf-Adobe Acrobat Standard Joyce, this being government, I don' think it is as simple as having the BOS vote to make the name change. Tom and/or Carol, could you look into this and advise accordingly? Thanks Mark Town Manager Town of North Andover 120 Main Street North Andover, MA 01845 email: mrees @townofnorthandover.com Phone#: 978-688-9510 Fax#978-688-9556 From: Bradshaw, Joyce Sent: Tuesday, April 05, 20113:40 PM To: Rees, Mark; Willett, Tim Subject: NAME CHANGE-WOODBERRY LANE-LIND SCHRADER.pdf- Adobe Acrobat Standard Attached is the formal request from residents to have Woodbury changed to Woodberry Lane. Official records show Woodbury but ssessors records and voting records have Woodberry. She also requested how we go about changing 1 GPS maps. The residents are all in favor of the change. She can be reached at(978)686-3774. 1 assume BOS vote is all that is needed. Thanks. Please note the Massachusetts Secretary of State's office has determined that most emails to and frorn municipal offices and officials are public records.For more information please refer to:http://www.sec.state.ma.us/pre/preidx.htm. Please consider the environment before printing this email. I 2 2DII APR -a` HT 2. 48 L'URTH AN DOVER MASSACHMC-US 35 Woodberry Lane North Andover,MA 01845 To the Selectman of North Andover, We,the residents of Woodberry Lane,North Andover, are requesting that you update and correct the Town records to be consistent with the name of our street "Woodberry Lane". Apparently the Selection accepted this street as "Woodbury Lane" in 1983 with the incorrect spelling. The Street sign at the top of our street placed by the Town of North Andover reads"Woodberry Lane"and has been there since we moved into our new home on Woodberry Lane in 1978. I The assessors records has our property listed at Woodberry Lane. Please correct and update your records to be consistent with Woodberry Lane and advise all inquiries into Town Streets of the correct spelling. In addition, on many-maps our street is shown as a through street,which it is not. Please advise me in writing when the Selection have approved this correction. Thank you, a Schrader Resident,35 Woodberry Ln ATTACHED: ALL 10 residents signature on Petition to Correct Street Name February 24, 2011 WE, the ten.-residents of Woodberry Lane, North Andover, Massachusetts, individually anddn unity, hereby petition the Selectman of North Andover to correct the name of our street from Woodbury Lane to WoodbM Lane. At a Selectman's meeting in 1983, our street was incorrectly accepted with the incorrect spelling of Woodbury Lane. Our deeds state Woodberry Lane, our street sign installed back almost 30 years ago by the Town of North Andover states Woodberry Lane, the Post Office delivers our mail to Woodberry Lane,the Town.Assessor lists our property at Woodberry Lane. However, in the Town of North Andover, there is no listing for Woodberry Lane thereby providing incorrect information to all map listings, GPS listings or any search for the street name Woodberry Lane, North Andover, Massachusetts. It is the request of the residents of Woodberry Lane to have the own records corrected to all have the same spelling of our street. (( #5 lei 1�4-1' l Printed Name of Owner gignature Printed Name of Owner -- to ^ l P inted Name o Owner S Pr�yi ted Name of Owner 'i nature , #36 so cChb�J t� Print Name of Owner Vgfiature #35 r1//%l.�z�27 /^llG/r'(° C�l; �`�" . v Printed Name of Owner Sign re Pr' ted Name of Owner Sig ature Printed Name of Owner Signature Wr -- LEGAL NOTICE The Town of North Andover Board of Se- lectmen will hold a pub- lic hearing on Monday, May 23, 2011 at 7:30 p.m. In the Meeting Room at Town Hall.for the purpose of amend- ing the Town of North Andover's Personnel Policy by adding In Arti- cle V II-Employee Ben- efit Program,a new Sec- 4ion O entitled'Stevens Estate Director-Salary Incentive Plan'. ET-5/16/11 I Amend the Town of North Andover Personnel Policy, Article VIII. Employee Benefit Program by adding a new Section O. Stevens Estate Director—Incentive Plan O. Stevens Estate Director—Incentive Plan (1) Purpose—The purpose of the Incentive Plan (as referred to in this Section O, the "Plan") is to aid the Stevens Estate in retaining and motivating the Director and to secure for the Estate the benefits arising from the alignment of the Director's compensation with the Estate's business objectives. The Plan shall be administered by the Town Manager's Office with the assistance of the Stevens Estate Board of Trustees. The Town Manager's construction and interpretation of the terms and provisions of the Plan shall be final and conclusive. (2) Eligibility—Beginning July 1, 2011, the individual holding the position of"Estate Director" shall be eligible to receive a bonus under this Incentive Plan each fiscal year. The Director must be employed for at least six continuous months during the fiscal year and remain employed by the Estate on the applicable Payment Date to be eligible for and to receive a bonus payment. All bonus payments shall be made in accordance with the Town's payroll procedures including proper withholding of all applicable U.S. federal, state and local taxes. (3) Payment Date—Each of the dates on which an identified bonus under this Incentive Plan is payable shall be referred to as a"Payment Date" (as defined in Paragraph 3). The Revenue Bonus shall be payable as earned, in up to three installments, beginning with the second payroll occurring after the financial statements for the Stevens Estate for the first two quarters of the fiscal year are deemed final by the Town. The second and third installments shall be payable, if earned, with the second payroll occurring after the financial statements for the Estate are deemed final by the Town for the quarters ending March 31 and June 30, respectively. The Revenue Bonus payable at each installment shall equal the total Revenue Bonus earned for the fiscal year based on the Estate's financial performance to-date as reported in the financial statements for the immediately preceding month, minus the prior Revenue Bonus payments made under the Plan for the fiscal year, if any. To the extent a Performance Bonus (as defined in Paragraph 4) becomes payable under the Plan, it shall be made in a single installment with the second payroll occurring after the financial statements for the Estate for the respective fiscal year are deemed final by the Town. (4) Description - The Plan has two components, first, a cash bonus with respect to achievement of certain revenue goals (the "Revenue Bonus") and second, a cash bonus with respect to the achievement of certain income objectives (the "Performance Bonus"). (a) Revenue Bonus: The Estate must achieve at least 80% of its Revenue Budget (as defined below) for the respective fiscal year in order for the Director to receive a Revenue Bonus (the "Threshold"). Once the Threshold is achieved,the amount of the Revenue Bonus earned shall be calculated using the following tiered method: o If the Estate recognizes Net Revenue for the fiscal year in an amount that is equal to or greater than the Threshold but less than the Revenue Budget, then the Revenue Bonus shall equal I% of aggregate Net Revenue for the fiscal year. • If the Estate recognizes Net Revenue for fiscal year in an amount that is equal to or greater than the Revenue Budget but less than 120% of the Revenue Budget, then the Revenue Bonus shall equal 2% of aggregate Net Revenue for the fiscal year. • If the Estate recognizes Net Revenue for the fiscal year in an amount that is equal to or greater than 120% of the Revenue Budget, then the Revenue Bonus shall equal 2.5% of aggregate Net Revenue for the fiscal year. In no event shall the Revenue Bonus exceed $10,000 in a fiscal year. As used in this Plan, for FY12 the "Revenue Budget" equals $306,575. The "Revenue Budget" will be adjusted and set for each fiscal year by mutual agreement of the Town Manager and the Board of Trustees. As used in this Plan, "Net Revenue" means cash received during the fiscal year that can be appropriately booked as revenue on the Estate's financial statements for activities related to the Estate's hospitality business, in all cases net of refunds, returns, taxes and gratuity. For the avoidance of doubt, deposits for events to be completed in subsequent fiscal year(s) must be accompanied by a signed contract in order to be recognized as revenue in the relevant fiscal year. (b) Performance Bonus: The Stevens Estate must achieve Break Even (as defined herein) for the fiscal year in order for the Director to receive a Performance Bonus. The Performance Bonus shall be binary. No bonus will be awarded if Break Even is not achieved. The Performance Bonus shall be $5,000. As used in this Plan, "Break Even" means that Net Revenue exceeds the Estate's recorded expenses by a minimum of$5,000 for the fiscal year, such results being prepared by the Town in accordance with the Town's accounting policies, applied on a consistent basis. UA Board of Selectmen Recommendations To Be Made At Town Meeting Article 15: Tax Increment Financing Plan —4 W High Street, Mansur Investments, Converse, Inc. and / or Schneider Electric Article 19: Establishment of Special Stabilization Fund — Reserve for Future Payrolls Article 20: Transfer of Funds into the Other Post Employment Benefits Liability Trust Fund t Article 23: Authorization to Transfer Funds from the Health Department Food Consultants Revolvinq Fund to the Health Department Article 28: Amend Zoninq Bylaw-Amend 4.122.14 — Resident 4 District—Permitted Uses FY12 Revenue Projection Detail REVENUE FIXED COST OMMITTEE SUBMITTAL _ I RFCC Recm'd YTD as of updated with %Increase FYI/ %Increase FYll Actual Actual ATM Recap/STM adj 04/30/11 Projected BOS,TM Record Recap to FY12 Projected to FY12 FY2009 FY2010 FY2011 FY2011 FY 2011 FY2011 FY2012 Projection RFCCRecm'd Comments PROPERTY TAX LEVY Tax Limit 49,874,728 51,654,403 53,569,478 53,569,478 53,569,478 55,488,866 Add 2.5% 1,246,868 1,291,360 ! 1,339,237 1,339,237 1,339,237 1,387,222 '... after reviewing prior years new growth we are Add New Growth 532,807 623,715 I 580,151 580,151 580,151 500,000 projecting no major increase Add Override 0 0 0 0 0 0 Levy Limit 51,6543403 53,569,478 55,488,866 55,488,866 55,488,866 57,376,088 +Debt Exclusion(s) 3,911,605 3,238,982 3,168,569 3,168.569 3,168,569 3,105,780 -SBA Reimb.-EXCLUDED DEBT (423,926) 0 0 0 0 0 -- -Debt Exclusion Adjustment 0 0 0 0 0 0 Bond Premium 0 0 0 0 0 0 SRA interest reimb-High School (65,326) (68,926) (68,926) (68,926) (68,926) (68,926) sub total Excluded Debt 3,422,353 1 3,170,056 1 3,099,643 3,099,643 3,099,643 3,036,854 Max Levy 55,076,756 56,739,535 58,588,509 58,588,509 58,588,509 60,412,942 GENERAL FUND PROPERTY TAXES Property Tax(Net of debt exclusions) 51,194,575 53,255,431 55,408,715 55,475,081 51,542,711 55,475,081 57,376,088 7.74% 3.43% Debt Exclusions 3,422,353 3,170,056 3,099,643 3,099,643 3,099,643 3,099,643 3,036,854 -4.20% -2.03% Rollback Taxes 1,707 1,707 0 Deferred Property Taxes 0 14,340 0 35,937 35,937 0 Tax Title 146,732 282,122 0 0 191,048 191,048 0 Actual Levy 54,763,660 56,721,950 58,508,358 58,574,724 54,871,046 58,803,417 60,412,942 6.51% 2.74% Local Receipts Motor Vehicle Excise j - -- due to the economy Nye are not projecting an Motor Vehicle Excise 3,701,733 3,492,903 3,700,000 3,500,000 3,372,160.80 3,500,000 3,500,000 0.00% 0.00%increase over FY10 actual collections 6.98% -14.14% -0.05% 0.20%'' 4.69% 4.68% Other Excise -- Jet Fuel'tax 25,997 22,303 25,000 I 22,000 15,067 22,000 22,000 0.00% 0.00% Forest Products Tax 0 0 0 I 0 0 0 0 Hotel Roam Tax 0 0 0 li 184 ',, 249 249 0 Farm Animal Excise 0 0 0 0 0 0 0 Total Other Excise 25,997 22,303 25,000 1 22,184 15,315 22,249 22,000 11 -0.83% -1.12% 5117/2011,3:06 PM,RFCRC FY12 Report-VOTED REVENUE PROJECTIONS 1-10-11 updated after 5-11-11 meeting .xIs2.xIs 1 FY12 Revenue Projection Detail REVENUE FIXED COST COMMITTEESUBMITTAL RFCC Recm'd YTD as of updated with %Increase FY11 1%Increase FY11 Actual Actual ATM Recap/STM adi 04/30111 Projected DOS;PM Recmd Recap to FY12 i!Projected to FY12 FY2009 FY2010 FY2011 FY2011 FY 2011 FY2011 FY2012 Projection RFCC Recin'd Comments Penalties&Interest Penalty/Int.on Prop.Tax 193,489 182,247 130,573 180,000 91,028 180,000 180,000 0.00% 0.000/0 Penalty/Int.on MVX 23,352 22,471 27,792 22,000 !, 18,926 22,000 22,000 0.00% 0.00% Penalty/Int.on Tax Title 52,623 35,185 121,226 35,000 38,989 38,989 35,000 0.00% -10.23% Over/Under 400 99 0 152 373 373 0 Lien Certificates 37,670 37,660 29,241 36,000 35,360 36,000 36,000 0.00% 0.00% - - ---- Rased on YTD Collection as of 5/1711] Treasurer Demand Fee 23,525 77,589 24,000 77,000 88,679 88,679 92,000 19.48% 3.75%increase an additional 15/K TotalPenalites&Interest 331,060 355,250 332,832 350,152 273,354 366,041 365,000 2.74% -0.28% Payment in Lieu Payment in Lieu of Taxes 29,173 27,243 29,000 27,000 30,967 30,967 27,000 0.00%' -12.81% Refuse IIost Community Fee(per agreement) 269,214 270,997 275,319 275,319 226,474 275,319 278,760 1.25%' 1.25%based on annual contract increase of 1.25% Host Comumnity Solid Waste Fees(per t( 1,388,671 1,409,042 1,450,000 1,452,440 1,184,091 1,452,440 1,501,533 3.38% 3.38%based on 6yr average increase of 3.38% 7.87% 1.47% 2.74% 3.38% Total Refuse 1,657,885 1,680,039 1,725,319 1,727,759 1,410,565 1,727,759 1,780,293 3.04%' 3.041/. 7.00% 1.34% 4.42% 0.141/. 0.14% 5.83% Other Charges '.. Updated based on YTD collections as of Ambulance Service 911,929 793,374 900,000 790,000 689,764 790,000 995,000 25.95%' 25.95%5117/11 increase an additional 30/K 6.47% -4.24% -1.31% -0.43% 10.68% 10.68% Fees Manager Misc.Fees 0 0 0 0 0 0 0 Dog Fees 45,415 44,620 41,000 44,000 44,495 44,495 44,000 0.00%' 1.11%based on FY 10 actuals Town Clerk Fees 27,692 23,684 21,000 23,000 21,534 23,000 23,000 0.00%' 0.00%based on FY10 actuals Extended Polling Hours 3,996 3,996 3,800 4,176 4,176 4,176 4,000 -4.21% -4.21%based onFY10actuals Cable Fees 0 5,014 4,000 5,000 5,059 5,059 5,000 0.00% -1.17%based on FYI 0 actuals Clerk Violation Fees 9,610 3,160 4,000 3,000 1,900 3,000 3,000 0.00% 0.00%based on FY10 actuals Passports 18,375 19,326 24,000 19,000 15,575 19,000 19,000 0.00%'' 0.00%based on FY10 actuals Clerk Application Fees 500 1,175 0 1,000 1,150 1,150 1,000 0.00%', 13.04%based on FYtO actuals Conservation Fees 344 299 500 300 784 784 300 0.00% -61.75%based on FY10 actuals Planning Board Filing Fees 8,286 19,325 25,000 20,000 18,539 20,000 20,000 0.00%' 0.00%based on FY10 actuals I Police Fee's 2,831 2,776 3,000 3,000 2,608 3,000 3,000 0.00%' 0.00%based on FY10 actuals -- - Increase by$22,000 based on YTD Collctions as of j Building Inspection Fees 629,082 595,583 630,000 595,000 512,292 595,000 617,000 3.70%' 3.70%5117/11 -20.40% -5.33/0 5.78/0 -0.10% 0 0 0 o -0.10% -1.18% --- Increase by$22,000 based on YTD Collctions as of Plumbing Inspection Fees 57,649 1 51,005 1 60,000 I 51,000 1 53,714 1 53,714 56,000 1 9.80% 4.26%5/17/11 5/1712011,3:06 PM,RFCRC FY12 Report-VOTED REVENUE PROJECTIONS 1-10-1lupdated after 5-11-11 meeting .xls2.xls 2 FY12 Revenue Projection Detail REVENUE;FIXED COST COMMITTEE SUBMITTAL j RFCC Reem'd ----. ----__ -. YTD as of updated with %Increase FYI1 i!o Increase FYll I: Actual Actual I ATM Recap/STM adj 04/30/11 ( Projected BOS,TM Reemd Recap to FY12 Projected to YY12 FY2009 FY2010 FY2011 FY2011 FY2011 FY2011 FY2012 Projection RFCCRcem'd Comments Increase by 522,000 based on YTD Coictions as of Electrical Inspection Fees 91,848 71,332 75,000 71,000 76,628 76,628 79,000 11.27% 3.10%5117111 Weights Measures 4,374 2,774 4,000 2,700 3,396 3,396 2,700 0.00% -20.49%based on FYIO actuals Increased by$48,000 per YTD totals and Recycling Fees 48,663 ; 12,262 48,000 26,727 65,735 65,735 78,000 191.84% 18.66%recycling contract Health Department Fees 0 0 0 0 0 0 0 Total Fees 948,666 856,329 943,300 868,903 827;585 918,137 955,000 9.91% 4.02% I I Rentals i School Dept.Rentals 0 0 0 0 0 0 0 School Revenue based on updated report from Consultant on 'Medcaid Reimb for FYI l up from original Medicaid Reimbursement 1 217,898 174,048 140,000 110,000 56,460 56,460 150,000 36.36%, 165.67%projection which should be consistent for FYI School Dept.Miscellaneous 0 1,580 0 0 3,450 3,450 0 J Total School Revenue 217,898 175,628 140,000 110,000 59,910 59,910 150,000 36.36%1 150.37% i Library Revenue Library Fines 14,103 16,840 14,000 16,000 8,133 16,000 16,000 0.001/6 0.000/.based on FYIO actuals Recreation Bathing Beach Receipts 29353 32,490 29,000 32,000 14,589 32,000 32,000 0.00% 0.00%based on FY10 actuals Other Receipts Rental Income 7,525 11,545 1 11,220 11,545 9,4401 11,545 11,545 0.00% 0.000/0 Cell Tower Lease 101,168 82,529 96,219 82,500 65,155 82,500 82,500 0.00% 0.00% Assessor Dept.Revenue 1,523 1,792 1,500 1,755 1,242 1,490 1,700 -3.13% 14.06% Misc.Dept Revenue 7,870 5,519 0 4,735 7,251 7,251 0 -100.00% Appeals Board Receipts 5,333 2,900 5,000 2,900 2,839 2,839 2,900 0.00% 2.16% Police 10%Admin.Fee 59,612 32,325 50,000 35,000 37,831 37,831 35,000 0.00% -7.48%1! Fire Alarm Box Permit Fees 21,400 I 20,000 21,400 21,400 20,000 20,000 21,400 0.00% 7.00%11 Boxford Veterans Reimbursements 12,982 11,639 10,000 11,000 0 11,707 11,000 0.00% -6.04% Total Other Receipts 217,414 168,250 195,339 170.835 143,758 175,163 166,045 -2.80% -5.21%1 Licenses/Permits Liquor License 87,100 90,950 87,100 90,950 89,200 89,200 90,950 0.00% 1.96% Other Alcohol License 1,125 225 L100 225 0 0 225 0.00% 0.00% Food License 3,775 3,675 ! 3,000 3,675 3,425 3,675 3,675 0.00% 0.00%I Miscellaneous Licenses 9,125 9,375 900 9,375 9,800 j 9,800 9,375 0.00% -4.34% License to Carry Firearms 2,413 2,038 3,000 2,000 3,088 3,088 2,000 0.00% 35.22% Fire Permits 38,616 41,055 40,000 41,000 32,695 41,000 41,000 0.00%1 0.00%1 5/17/2011,3:06 PM,RFCRC FY12 Report-VOTED REVENUE PROJECTIONS 1-10-11 updated after 5-11-11 meeting .xIs2.xls 3 FY12 Revenue Projection Detail I REVENUE FIXED COST COMMITTEE SUBMITTAL RFCC Reem'd Y'fD as of updated with %Increase FY11 %Increase FYl l'.. Actual Actual j ATM Recap/STM adj 04/30/11 Projected ROS,TM Recmd Recap to FY12 Projected to FY12'. FY2009 FY2010 j FY2011 FY2011 FY 2011 FY2011 FY2012 Projection RFCC Reem'd Comments Gas Permits 15,552 17,127 16,000 1 17,000 9,401 1700 175000 0.00%, 0.00%' - To,Z`ledsoai-illno longer be selling Fish aann Wildly Fishing&Boating License 1965 5,675 3,90011 5,675 2,295 2,295 0 -100.00%1 100.00%'1-ases•no,reven°e projected for FY12 Burial Permits 0 3,070 0 3,100 4,050 4,050 3,100 0.00% Health Permits 53,892 57,646 45,000 57,000 42,843 57.000 77,000 35.09%1 35.09%' Total Licenses/Permits 1 215,562 230,836 208,100 230,000 196,796 227,108 244,325 6.23%1 7.58% Fines/Forfeits _ Parking Fines 19,361 14,289 19,000 14,250 13,030 14,250 14,250 0.00% 0.00% Court Fines 114,733 85,148 114,000 85,150 68,435 85,150 85,150 j 0.00% 0.00%' False Alarm Fine 7,075 4,600 7,000 4,600 3,675 4,600 4,600 0.00% 0.00% Total Fines/Forfeits! 141,168 104,037 140,000 104,000 I 85,140 104,000 104,000 0.00% 0,00% Investment Income --_- i Reductions per projections from Treasurer Interest-General 472,013 396,306 400,000 267,000 295,596 295,596 115,000 -56.93% -61.10%Collector,reduced by 5152,000 -44.40%''.. -16.04% 0.93% -32.63% -25.41% Total Local Receipts 8,913,954 8,351,827 8,781,890 8.215,833 7,423,632 8,264,929 8,471,663 3.11% 2.50% INTERGOVERNMENTAL-STATE CHERRYSHEET ------ - projecting state will decrease by 10%,updated '.. Loss of Tax Vets/Blind/Widow(2%) 57,118 76,087 76,087 76,087 17,570 76,087 69,332 -8.88% -8.88%with House H's State Owned Land 192,296 173,232 201,879 186,373 186,373 186,373 185,690 -0.37% -0.37% Police Career Incentive 170,514 33,912 16,757 16,757 0 16,757 0 -100.00% -100.00% " Veteran 117,461 141,803 176,367 176,367 161,402 176,367 136,860 -22.40% -22.40% Unrestricted General Government Aid 2,193,269 1,805,628 1,733,403 1,733,403 1,300,052 1,733,403 1,608,071 -7.23%1 -7.23% " Chapter 70 Aid 4,968,107 5,440,937 6,092,035 6,092,035 4,569,026 6,092,035 6,124,740 0.54%1 0.54% Charter Tuition Assessment Reimb 0 22,328 7,758 7fiQ 4,984 7,692 6,550 -14.85%1 44.85% " School Building Assistance 412,131 412,131 412,131 412,131 412,131 1 412,13E 1 412,131 0.00%1 0.00% Total Cherry Sheet Aid 8,285,157 8,106,058 8,716,417 8,700,845 6,651,538 8,700,845 8,543,374 -1.81% -1.81% INTERFUND OPERATING TRANSFERS Transfers from Sewer 348,894 383,783 422,161 422,161 351,801 422,161 471,554 11.70%1 11.70%11.70%increase for sixyr average Transfers from Water Enterprise 591,196 623,712 658,000 658,016 548,333 658,016 705,722 7,25%1 7.25%7.25%increase for six yraverage Transfer from Stevens Est. 64,176 40,141 46,460 46,460 38,717 46,460 46,460 0.00%1 0.00%same as FY 10 and FYI I Transfers from Special Revenue(Comm 26,290 65,513 64,635 j 64,635 65,914 65,914 65,700 1.65% -0.32%debt sch Transfer from Special Revenue(Youth) 0 0 40,000 Transfer from GLSD 0 0 131,245 131,245 0 j 131,245 134,526 2.50% 2.50%based on annual contract with Gt SD 5/17/2011,3:06 PM,RFCRC FY12 Report-VOTED REVENUE PROJECTIONS 1-10-11 updated after 5-11-11 meeting .xIs2.xIs 4 FY12 Revenue Projection Detail REVENUE FIXED COST COMMITTEESUBMITTAL RFCC Rccm'd YTD as of updated with %Increase FYI! %increase FYII Actual Actual ATM Recap/STM adj 04/30111 Projected BOS;FM Reemd Recap to FY12 Projected to FY12 FY2009 FY2010 FY2011 FY2011 FY 2011 FY2011 FY2012 Projection RFCC Recm'd Comments Transfer from Capital 64,482 0 0 0 17,622 17,622 0 Total lnterfund Operating Transfers 1,165,604 1,113,149 1,322,501 1,322,517 1,022,387 1,341,418 1,463,962 10.70% 9.14% 25.19% -4.50% 18.81% 18.81% 2051% TOTAL OPERATING REVENUES 1, 73,128,375 74,292,984 771329,166 76,813,920 69,968.604 77,110,609 78,891,941 2.711/. 2.31% Dollar Change 4,430,360 932,535 4,200,792 2,520,935 8,412,594 2,078,022 %Change 6.45% 1.27% 5.74% 3.39% 12.25% 7.54% Reserves and One time only revenue Misc non recurring 71,746 17,241 0 14,726 17,395 17,395 0 Mise non Recurring-Hopkinton Bill 44,259 35,571 50,000 50,000 10,274 10,274 35,500 Misc non recurring-FEMA reimbur 124,097 69,298 0 1,472 7,734 7,734 0 Misc non recurring-MEMA reimbur 0 0 0 0 0 0 0 Misc non recurring-Medicare Pats D 122,036 92,161 107,478 107,478 77,991 77,991 92,000 -14.40% _ 0.00% Transfer from GLSD 0 128,044 0 0 0 0 0 Transfer from reserve for Debt Payments 423,926 0 0 0 0 0 0 Free Cash 983,278 0 0 690,952 0 690,952 0 Stabilization 0 0 0 0 0 0 0 Surplus Overlay 300,000 0 0 0 0 0 1 0 Bond Premium 202,338 10,417 0 0 127,464 127,464 0 Total Reserves and Otte Time Revenues 2,271,679 352,732 157,478 864,628 240,858 931,810 127,500 -85.25% -100.00% GENERAL FUNDS TOTAL 75,400,053 74,645,716 77,486,644 77>678,548 70,209,462 78,042,419 79,019,441 1.73% 1.25% Dollar Change 183,672 (754,337) 2,840,928 191,903 363,872 1,340,894 Percent Change 0.24% -1.000/0 3.81% 0.25% 3.50% 1.73% checked checked checked checked it 5!1712011,3:06 PM,RFCRC FY12 Report-VOTED REVENUE PROJECTIONS 1-10-11 updated after 5-11-11 meeting .xls2.xls 5 FY12 Revenue Projections RFCC Recm'd,updated with BOS,TM Recm'd $ 79,043,441.00 increase in Treasurers Demands $ 15,000.00 based on YTD collections through 5/17/11 of$90,003 increase in Ambulance Receipts $ 30,000.00 based on YTD collections through 5/17/11 of$722,183 and an increase in rates increase in Building Inspections Fees $ 22,000.00 based on YTD collections through 5/17/11 increase in Plumbing Inspection Fees $ 5,000.00 based on YTD collections through 5/17/11 increase in Electrical Inspections Fees $ 8,000.00 based on YTD collections through 5/17/11 increase in Recycling Fees $ 48,000.00 based on YTD collections through 5/17/11 of$ 68,441 decrease based on projections from Treasurer Collector,GF interest income will be decrease in Interest Income reduced.This is caused by the int rate of 3.45%on$10/M CD's to 1.25%resulting in a $ (152,000.00) $20,000 anticipated reduction per month New Revenue Projections $ 79,019,441.00 Total FY12 Budget $ 79,043,441.00 Shortfall $ (24,000.00) 5/17/2011,3:07 PM Health Insurance Trust Fund Insurance Town Employee Other Interest Retiree Trust Fund Expense %inc/yr Appropriation %Inc/yr Contributions %Inc./yr Deductins Inc. Drug./ERRP Ret/Cobra Surplus/Deficit Bal. $ 13,663 FY04 $ 6,428,105 $ 5,556,796 $ 789,384 $ 143,565 $ 5,791 $ 221,782 $ 289,213 $ 302,876 FY05 $ 6,706,754 4.33% $ 5,800,000 4.38% $ 855,532 8.38% $ 160,781 $ 12,773 $ 304,565 $ 426,897 $ 729,773 FY06 $ 7,836,289 16.84% $ 6,206,801 7.01% $ 1,004,614 17.43% $ 150,276 $ 29,066 $ 364,300 $ (81,232) $ 648,541 FY07 $ 8,105,801 3.44% $ 7,156,634 15.30% $ 1,131,663 12.65% $ 81,497 $ 42,185 $ 297,963 $ 604,141 $ 1,252,682 FY08 $ 8,723,342 7.62% $ 8,060,037 12.62% $ 1,286,310 13.67% $ 89,140 $ 76,492 $ 70,566 $ 367,845 $ 1,156,482 $ 2,409,164 FY09 $ 8,600,947 -1.40% $ 8,235,740 2.18% $ 1,402,259 9.01% $ 90,656 $ 59,841 $ (70,566) $ 466,250 $ 1,653,799 $ 4,062,963 FYI $ 9,483,979 10.27% $ 6,670,247 -19.01% $ 1,520,086 8.40% $ 88,633 $ 15,973 $ 454,680 $ (734,360) $ 3,328,603 FY11Bud $ 10,985,736 15.83% $ 8,396,967 25.89% $ 1,423,923 -6.33% $ 94,927 $ 21,000 $ 445,467 $ (603,452) $ 2,594,243 FYI Proj.5/12/11 $ 12,178,526 28.41% $ 8,396,967 25.89% $ 1,757,446 15.61% $ 130,593 $ 6,935 $ 153,654 $ 457,752 $ (1,275,180) $ 2,053,423 FYI 2Proj. $ 12,999,139 $ 10,161,071; $ 2,267,906 $ 100,000 $ 9,300 $ 460,862 $ - $ 2,053,423 Chg over FYI IBud. $ 2,013,403 18.33% $ 1,764,104 21.01% $ 843,983 59.27% Chg over FYI 1 Proj. $ 820,613 6.74% $ 1,764,104 21.01% $ 510,460 29.05% (was previously$310,862) FYI Health Ins Trust Fund Projection.xlsSummary&History5/13/20119:18 AM Health Insurance Trust Fund Fiscal Year 2011 Actual as of April 30,2011 Total Appropriated Employes Balance Proofing with OIL and Treasurer Soh Leh,Com Retiree'. $8,396,988.93 ( Deduction.Town Pro Receipts (s Interest Income Cobra Payments ERRP Receipts (# Treasures varlancefrom Month #4360) Insurance Expense &School(#4348) 4349) (#4820) (64354) (44355) 4350) Total Monthly Activity Fund Balance IBNR Fund Balance Cash Bai TIB Comments 3,328,802.39 (458,306.00) 2,872,298.39 2,890,012.24 (438,590.15) July 699,747.25 (1,285,895.85) 107,490.67 6,771.10 1,163.98 5,009.01 - 3,983.05 (481,640.79) 2,868,961.60 (456,306.00) 2,410,655.60 2,321,329.39 (545,632.21) Aug 699,747.25 (M,051.84) 109,643.06 20,653.60 1,043.16 - - 74,451.44 65,386.87 2,932,348.47 (456,306.00) 2,476,042.47 2,493,758.32 (438,590.15) Sept 699,747.25 (936,821.23) 138,079.88 6,771.10 702.97 5.780.86 - 2,488.50 (83,250.87) 2,849,097.60 (455,306.00) 2,392,791.60 2,409,804.48 (439,293.12) Oct 699,747.25 (1,444,954.47) 141,154.50 6,771.10 711439 591.74 - 73,866.19 (522,112.30) 2,326,985.30 (838,913.00) 1,488,072.30 1,888,395.15 (438,590.15) Nov 699,747.25 (631,046.34) 143,569.76 8,771.10 532.19 2,503.42 - 3,608.37 225,685.75 2,552,671.05 (838,913.00) 1,713,758.05 2,114,080.90 (438,590.15) Dec 899,747.25 (802,025.59) 141,872.69 6,771.10 497.97 2,943.86 - 72,447.61 322,254.69 2,874,925.74 (838,913.00) 2,036,012.74 2,436,335,59 (438459015) Jan 699,747.25 (1,475,735.76) 151,294.29 0,771.10 24515 5,363.21 - 41,102.40 (571,212,26) 2,303,713.48 (838,913,00) 1,464,800.48 1,799,015.15 (504,896.33) Feb 699,747.25 (711,412.38) 143,126.52 8,771.10 344A2 4,548.59 - 39,954.73 183,080.23 2,486,793.71 (838,913.00) 1,647,880.71 1,990,642,34 (496,251.37) Mar 699,747.25 (896,679.08) 170,490.50 30,016.52 49121 1,971.43 153,653.70 42,539.58 200,233.11 2,687,026.82 (838,913,00) 1,848,113.82 2,247,943.46 (439,083.38) Apr 699,747.25 (1,171,204.27) 170,824.45 11,524.70 400.00 766.22 - 2,342.04 (285,599.51) 2,401,427.21 (838,913.00) 1,562,514.21 - (2,401,427.21) May(Prol) 699,747.25 (1,086,300.00) 170,000.00 11,000.00 400.00 700.00 35,000.00 (171,452.75) 2,229,974.48 (838,913.00) 1,391,061.46 (2,229,974.46) Jun(prol) 699,747.25 (1,092,399.00) 170,000.00 10,000.00 400.00 700.00 - 35,000.00 (176,551.75) 2,053,422.71 (838,913.00) 1,214,509.71 - (2,053,422.71) 8,396,967.00 (12,178,525.81) 1,757,446.12 130,592.52 6,934.64 30,968,14 153,853.70 426,783.91 (1,275,179.68) •Funds will be transferred hem special rovers account st next A7'M 10,903,345,93 Total Revenue less stop loss 910,385.97 Stop loss 11,813,731.90 Total Revenue(floe to OIL) FY11 Health Insurance Expense Monhtly Stop Loss Reimb(# GBS Consulting Group Life Reinsurance HM Refunds Total Monthly BCBC Medex Blue Care settlement 4352) Fee's(J Sherry) (Prudential) Ins /Adjustments Payments Ortly Totals actual July 800,000.00 46,700.00 6,818.90 439,774.36 (9,885.12) 2,487.71 - 1,285,895.85 actual Aug 800,000.00 46,700.00 6,818.90 - (55,828.19) 2,425.17 39,935.76 840,051.64 actual Sept 800,000.00 46,700.00 6,818.90 - 2,479.00 2,363.73 40,248.40 38,211.20 936,821.23 3,062,768.72 1st Qrt Total actual Oct 800,000.00 46,700.00 6,818.90 550,235.52 - 2,386.21 38,813.84 - 1,444,954.47 actual Nov 800,000.00 46,700.00 6,818.90 - (222,472.56) - - - 631,046.34 actual Dee 800,000.00 46,700.00 6,818.90 - (297,711.56) 2,479.00 2,364.45 41,374.80 602,025.59 2,678,026.40 2nd Qrt Total actual Jan 800,000.00 46,700.00 7,854.89 594,271.11 - 2,378.24 81,848.32 (57,316.80) 1,475,735.76 actual Feb 800,000.00 46,700.00 8,029.33 - (145,689.37) - 2,372.42 - 711,412.38 actual Mar 800,000.00 46,700.00 7,243.77 - (45,032.85) 2,479.00 5,069.08 82,220.08 898,679.08 3,085,827.22 3rd Qrt Total actual Apr 956,100.00 62,000.00 7,592.94 157,535.11 (133,766.32) - 2,513.24 119,229.30 1,171,204.27 Est. May 956,100.00 62,000.00 7,600.00 - - 2,600.00 60,000.00 1,088,300.00 Est, June 956,199.00 62,000.00 7,600.00 4,000.00 2,600.00 60,000.00 1,092,399.00 3,351,903.27 4th Qrt Total 10,068,399.00 606,300.00 86,834.33 1,741,816.10 (910,385.97) 11,437.00 29,560.25 563,670.50 (19,105.60) 12,178,525.61 12,178,525.61 FYI Appropriation $8,396,966.93 Vendor# ' settlement period Blue Cross Blue Shield 10,068,399.00 439,774.36 03/01/10-05/31/10 Medex 606,300.00 550,235.52 06/1/10-08/31/10 Blue Cross Blue Shield MASS 86,834.33 594,271.11 9/1/10-11/30/10 Consulting Fee's-J Sherry 11,437.00 157,535.11 12/1/10-02/28/11 Group Life-Prudential 29,560.25 1,741,616.10 Reinsumace-HM Ins Group 563,670.50 Monthly Settlements 1,741,816.10 Sub-total expenditures 13,108,017.18 Refunds/Adj (19,105.60) Total Exp before Stop Loss 13,088,911.58 (ties to G//) Stop Loss Reimb. (910,385.97) Total after Stop loss 12,178,525.61 School Town Portion/mont#of Months Town Portion/m(#of Months 15% Net Work E 19 $1,635.76 8 $248,636 $1,881.12 4 $142,965 $391,601 Net Work E -4 $646.03 8 "S"016-113" $742.93 4 ( 1 8K'. '$32,15;60) Blue Choic -1 $1,838.41 8 � 7 7 $2,114.17 4 ; ,55 s, $23516 '- Blue Choic -1 $709.24 8 ' , $815.63 4 ; 0 13 $207,581 $119,359 $326,941. Municipal Net Work E 1 $1,572.25 8 $12,578 $1,808.09 4 $7,232 $19,810 Net Work E 1 $618.99 8 $4,952 $711.84 4 $2,847 $7,799 Blue Choic 0 $1,838.41 8 $- $2,114.17 4 $- $- Blue Choic 0 $709.24 8 $- $815.63 4 $- $- 2 $17,530 $10,080 $27,610 Total Scho 15 $225,111 $129,439 $354,550 Discount Factor 5% $336,823 School Emp Portion/montl•#of Months Town Portion/m(#of Months 15% Net Work E 19 $288.66 8 $43,876 $331.96 4 $25,229 $69,105 Net Work E -4 $105.17 8 3365" $120.95 4 51,9,3) 5._3 0 1 Blue Choic -1 $989.91 8 (S7,919) $1,138.40 4 _ - Blue Choic -1 $381.90 8 3 -3,0 5 5 $439.19 4 4$1,75,? , -12 13 $29,536 $16,983 $46,520 Municipal Net Work E 1 $352.17 8 $2,817 $405.00 4 $1,620 $4,437 Net Work E 1 $132.21 8 $1,058 $152.04 4 $608 $1,666 Blue Choic 0 $989.91 8 $- $1,138.40 4 $- $- Blue Choic 0 $381.90 8 $- $439.19 4 $- $- 2 $3,875 $2,228 $6,103 Total Scho 15 $33,411 $19,212 $52,623 Discount Factor 5% $49,992 Total town and emp. $386,815 FY 2012 Cherry Sheet Projection vs.SWM Budget Proposal - WOMEN CHERRYSHEET Loss of Tax Vets/Blind/Widow 76,087 68,478 69,332 69,332 69,332 -6,755 854 854 854 Chapter 70 Aid 6,092,035 5,482,832 6,124,740 6,124,740 6,124,740 32,705 641,908 641,908 641,908 Charter Tuition Assessment Reimbursement 7,692 6,923 9,180 6,550 6,509 1,488 2,257 -373 -414 Police Career Incentive 16,757 15,081 16,992 0 8,496 235 1,911 -15,081 -6,585 Veterans Benefits 176,367 158,730 136,860 136,860 136,860 -39,507 -21,870 -21,870 -21,870 Unrestricted General Government Aid 1,733,403 1,560,063 1,608,071 1,608,071 1,608,071 -125,332 48,008 48,008 48,008 State Owned Land 186,373 167,736 185,690 185,691 185,691 -683 17,954 17,955 17,955 Total Receipts net of MSBA 8,288,714 7,459,843 8,150,865 8,131,244 8,139,699 -137,849 691,022 671,401 679,856 FY 2012 Cherry Sheet Assessments Projection vs.HWM OEM INS 1 1111! Mosquito Control 85,167 85,167 85,843 85,843 85,843 676 676 676 676 Retired Teachers Health Insurance 1,632,652 1,539,000 1,538,062 1,405,517 1,405,517 -94,590 -938 -133,483 -133,483 Air Pollution Districts 8,470 8,470 8,484 8,484 8,484 14 14 14 14 MBTA,Regional Transit 174,085 174,085 172,662 172,662 172,662 -1,423 -1,423 -1,423 -1,423 RMV Non-Renewal Surc. 17,460 17,460 20,640 20,640 20,640 3,180 3,180 3,180 3,180 School Choice 19,412 19,412 30,162 30,162 30,162 10,750 10,750 10,750 10,750 Special Ed 0 0 4,778 4,778 4,778 4,778 4,778 4,778 4,778 Charter School Assessment 69,709 69,709 72,710 70,095 70,095 3,001 3,001 386 386 Essex Regional Tech School 61,448 61,448 49,087 49,087 49,087 -12,361 -12,361 -12,361 -12,361 Total Direct Expenses 2,068,403 1,974,751 1,982,428 1,847,268 1,847,268 -85,975 7,677 -127,483 -127,483 Net Receipts/Assessments 6,220,311 5,485,092 6,168,437 6,283,976 6,292,431 -51,874 683,345 798,884 807,339 5/19/2011,9:15 AM,FY12 Cherry Sheet Governor Budget Proposal SWM .xis 1 Possible budget changes to FY12 General Fund Budget P dA �`a Decrease in Increase in Rev. Rev.or Town Mgr. Rec. or Decrease in Increase in Line Item Budget Expenses Expenses Revised Budget Revenue,Local Receipts,Ambulance Fees @120%of Medicare $ 790,000 $ 175,000 $ 965,000 Non Dept/Fixed Costs,State Assessments, Retired Teachers Health Ins. $ 1,538,062 $ 132,545 $ 1,405,517 Greater Lawrence Technical School $ 275,000 $ 31,406 $ 243,594 OPED Reserves $ 92,000 $ 92,000 $ - 27 Payroll Reserve $ 50,000 $ 50,000 $ - Unemployment $ 237,400 $ 37,400 $ 200,000 Health Insurance-Adj to Retiree Contributions and Adj.for 15 net enrollees $ 9,974,071 $ 150,000 $ 337,000 $ 10,161,071 Police Career Incentive $ 16,992 $ 16,992 $ - Charter Tuition Assessment Reimbursement $ 9,180 $ 2,630 $ 6,550 Total $ 668,351 $ 356,622 Net Change $ 311,729 School Allocation 68.74% $ 214,283 Municipal Allocation 31.26% $ 97,446 5/19/20114:39 PMPossible Changes to FY12 Budget,rev4.xlsPossible Changes Possible budget changes to FY12 Gen ral Fund Budget Decrease in Increase in Rev. Rev.or Town Mgr. Rec. or Decrease in Increase in Line Item Budget Expenses Expenses Revised Budget Revenue, Local Receipts,Ambulance Fees @120%of Medicare $ 790,000 $ 205,000 $ 995,000 Non Dept/Fixed Costs,State Assessments,Retired Teachers Health Ins. $ 1,538,062 $ 132,545 $ 1,405,517 Greater Lawrence Technical School $ 275,000 $ 31,406 $ 243,594 OPED Reserves $ 92,000 $ 92,000 $ - 27 Payroll Reserve $ 50,000 $ 50,000 $ - Unemployment $ 237,400 $ 37,400 $ 200,000 Health Insurance-Adj to Retiree Contributions and Adj.for 15 net enrollees $ 9,974,071 $ 265,504 $ 337,000 $ 10,045,567 Police Career Incentive $ 16,992 $ 8,496 $ 8,496 Charter Tuition Assessment Reimbursement $ 9,180 $ 2,630 $ 6,550 Increase in Treasurer's Demand Fees $ 77,000 $ 15,000 $ 92,000 Increase in Building Inspection Fees $ 595,000 $ 22,000 $ 617,000 Increase in Plumbing Inspection Fees $ 51,000 $ 5,000 $ 56,000 Increase in Electrical Inspection Fees $ 71,000 $ 8,000 $ 79,000 Increase in Recycling Fees $ 30,000 $ 48,000 $ 78,000 Decrease in Interest Income $ 267,000 $ 152,000 $ 115,000 Total $ 911,855 $ 500,126 Net Change $ 411,729 School Allocation 68.74% $ 283,023 Municipal Allocation 31.26% $ 128,706 Local Meals Tax-First Year $ 241,070 School Allocation 68.74% $ 165,712 Municipal Allocation 31.26% $ 75,358 Net Change Plus Local Meals Tax-First Year School Allocation $ 448,734 Municipal Allocation $ 204,065 5/19/20114:33 PMPossible Changes to FY12 Budget,rev5.xlsPossible Changes Health Insurance Trust Fund Insurance Town Employee Other Interest Retiree Trust Fund Expense %inc/yr Appropriation %Inc/yr Contributions %Inc./yr Deductins Inc. Drug./ERRP Ret/Cobra Surplus/Deficit Bal. $ 13,663 FY04 $ 6,428,105 $ 5,556,796 $ 789,384 $ 143,565 $ 5,791 $ 221,782 $ 289,213 $ 302,876 FY05 $ 6,706,754 4.33% $ 5,800,000 4.38% $ 855,532 8.38% $ 160,781 $ 12,773 $ 304,565 $ 426,897 $ 729,773 FY06 $ 7,836,289 16.84% $ 6,206,801 7.01% $ 1,004,614 17.43% $ 150,276 $ 29,066 $ 364,300 $ (81,232) $ 648,541 FY07 $ 8,105,801 3.44% $ 7,156,634 15.30% $ 1,131,663 12.65% $ 81,497 $ 42,185 $ 297,963 $ 604,141 $ 1,252,682 FY08 $ 8,723,342 7.62% $ 8,060,037 12.62% $ 1,286,310 13.67% $ 89,140 $ 76,492 $ 70,566 $ 367,845 $ 1,156,482 $ 2,409,164 FY09 $ 8,600,947 -1.40% $ 8,235,740 2.18% $ 1,402,259 9.01% $ 90,656 $ 59,841 $ (70,566) $ 466,250 $ 1,653,799 $ 4,062,963 FY10 $ 9,483,979 10.27% $ 6,670,247 -19.01% $ 1,520,086 8.40% $ 88,633 $ 15,973 $ 454,680 $ (734,360) $ 3,328,603 FY11Bud $ 10,985,736 15.83% $ 8,396,967 25.89% $ 1,423,923 -6.33% $ 94,927 $ 21,000 $ 445,467 $ (603,452) $ 2,594,243 FY11 Proj.5/12/11 $ 12,178,526 28.41% $ 8,396,967 25.89% $ 1,757,446 15.61% $ 130,593 $ 6,935 $ 153,654 $ 457,752 $ (1,275,180) $ 2,053,423 FY12 Proj. $ 12,999,139 $- 10,045,567 $ 2,267,906 $ 100,000 $ 9,300 $ 460,862 $ (115,504) $ 1,937,919 ChgoverFYllBud. $ 2,013,403 18.33% $ 1,648,600 19.63% $ 843,983 59.27% Chg over FYI 1 Proj. $ 820,613 6.74% $ 1,648,600 19.63% $ 510,460 29.05% (was previously$310,862) FY12 Health Ins Trust Fund Projection, rev1.xlsSummary&History5/1 9/201 1 4:37 PM Munciipal Budget Restorations Restorations without Meals Tax $ 128,706 Restoration Elder Services $ 40,000 $ 88,706 Library $ 40,000 $ 48,706 Public Works $ 40,000 $ 8,706 Police OT $ 4,353 $ 4,353 Fire OT $ 4,353 $ - Note:The Recreation Position is being funded by a trasnfer from the Recreation Revolver Account Add'I Restorations with Meals Tax $ 75,358 Budget Cuts Restoration Public Works OT $ 9,500 $ 4,500 $ 70,858 Police OT $ 58,392 $ 22,350 $ 48,508 Fire OT $ 145,647 $ 33,006 $ 15,502 Snow and Ice $ 22,552 $ 15,502 OPED Reserves $ 92,000 $ 15,502 27 Payroll Reserves $ 50,000 $ 15,502 Fire, Deputy Chief $ 80,000 $ 15,502 Youth and Recreation Expenses $ 5,600 $ 2,800 $ 12,702 Elder Services Expenses $ 7,155 $ 3,500 $ 9,202 Library Expenses $ 20,914 $ 9,202 $ - Prioritized Reductions and Restorations to Show FY12 Consensus Budget and Impact of Meals Tax Increase Adjusted May 2,2011 School Committee Budget $ 38,313,594 School Committee Budget* Description FTE Reduction Amount Running Total Restoraton[Read Up] Impact Level 1 Reductions 1.1 Special Education Circuit Breaker $ 300,000 $ 38,313,594 $ 1,671,749 Reimbursement Estimate 1.2 Operations Copiers $ 50,000 $ 38,013,594 $ 1,371,749 Expected savings in new copier contract 1.3 Operations Transportation $ 50,000 $ 37,963,594 $ 1,321,749 Move one bus to revolving fund 1.4 Admin/Instructional Leadership Grant Eligible Expenses $ 25,000 $ 37,913,594 $ 1,271,749 Move partial admin salary to grant 1.S Special Education Grant Eligible Expenses $ 30,000 $ 37,888,594 $ 1,246,749 Move support position to grant 1.6 Critical Needs Reductions Elementary Library Assistant 1.0 $ 24,000 $ 37,858,594 $ 1,216,749 Reduce elem library proposal to 1 staff 1.7 Critical Needs Reductions HS Security $ 15,000 $ 37,834,594 $ 1,192,749 Fund security this year Level 2 Reductions 2.1 Instructional Materials SPED Materials and Supplies $ 18,000 $ 37,819,594 $ 1,177,749 Reduce curriculum materials 2.2 Operations Utilities and Maintenance $ 135,000 $ 37,801,594 $ 1,159,749 Anticipated cost reductions 2.3 Instructional Materials Curriculum Supplies/Texts $ 75,000 $ 37,666,594 $ 1,024,749 Reduce textbooks and materials 2.4 Operations Athletics $ 15,000 $ 37,591,594 $ 949,749 Defer uniform replacements 2.5 Instructional Materials School Allocations-High School $ 150,000 $ 37,576,594 $ 934,749 Reduce textbooks and materials 2.6 Instructional Materials School Allocations-Elementary $ 35,000 $ 37,426,594 $ 784,749 Reduce textbooks and materials Level Reductions 3.1 Critical Needs Reductions 1 TIP Paraprofessional NAMS 1.0 $ 20,000 $ 37,391,594 $ 749,749 Reduce TIP proposal to 2 staff 3.2 Critical Needs Reductions Elementary Literacy $ 50,000 $ 37,371,594 $ 729,749 Reduce literacy intervention 3.3 Instructional Staff SPED Positions-OT 0.6 $ 40,000 $ 37,321,594 $ 679,749 All OT contracted services Reduce teaching staff and reconfigure 3.4 Instructional Staff High School Teaching Positions **2.0 $ 108,000 $ 37,281,594 $ 639,749 department heads teaching load _ _ _ 3.5 Instructional Staff _ _ _ SPED Pos_it_io_ns_-Inclusion Teacher _ _1.5 $_ _81,000 $ 37,173,594_ $ _531,749_Inclusion caseload from 18 to 20 Consensus+Meals Tax 3.6Admin/Instructional Leadership g-PEDP -EYES - - ""-' -"--- --- -- - ------ -_--_-. ositions 1.5 $ 81,000 $ 37,092,594 -$ 450,749 'R - Level Reductions 4.1 Instructional Staff SPED Positions-Inclusion Teachers 2.0 $ 108,000 $ 37,011,594 $ 369,749 Inclusion caseload from 18 to 20 4.2 Instructional Staff High School eaching Positions 1.0 $ 54,000 $ 36,903,594 $ 261,749 Reduce 1.0 science teacher Restored by Consensus Budget Consensus 4.2 Instructional Staff High School Teaching Positions 1.0 $ 54,000 $ 36,849,594 $ 207,749 Restore 1.0 math teacher reduction 4.3 Instructional Staff Elementary Positions 3.0 $ 162,000 $ 36,795,594$ 36,633,594 $ 153,749 Restore 3 Elem teacher reduction Real-Time Adjustments 5.1 Special Education Copiers $ 17,289 $ (8,251) 5.2 Operations Circuit Breaker Updated actual savings in new contract $ (25,540) $ (25,540) Additional 2%to Reimbursement Estimate Total Reductions $ 1,671,749 $ 36,847,861 FY12 Consensus Budget $ 36,633,578 Town Manager's Budget *Voted budget of$38,062,594 plus$251,000 included in health insurance savings calculation by Town Manager **Two retirements:classes to be assumed by increased teaching load for NAHS Dept Heads revised 5-5-11 $ 214,283 Additional Funds from Town Manager $ 236,466 Additional Funds from Meals Tax $ 450,749 5/5/2011 " Fie Change Field Code d THE COMMONWEALTH OF MASSACHUSETTS -- -- - - OFFICE OF THE ATTORNEY GENERAL !de chuS DEPARTMENT OF ENVIRONMENTAL PROTECTION ° °5RS' ` t MARTHA COAKLEY F N V I R O N Al F N T A L I ENVIRONMENTAL CRIMES STRIKE FORCE R ° ' F " ' ° 14 ATTORNEY GENERAL ' %V\VW.MASS.GOV/AGO WWWWASS.GOV/DEP FOR IMMEDIATE RELEASE NIEDIA CONTACT: May 19,2011 Amie Breton Grant Woodman (617)727-2543 NORTH ANDOVER RECEIVES OVER$227,000 AS RESULT OF AG COAKLEY AND DEP SETTLEMENT WITH WHEELABRATOR FOR ENVIRONMENTAL VIOLATIONS BOSTON—The Town of North Andover will receive a payment of$227,954 as a result of a settlement resolving environmental violations allegedly committed by the operator of' municipal waste incinerators,Attorney General Martha Coakley announced today. Wheelabrator Saugus and Wheelabrator North Andover allegedly committed multiple violations of the Hazardous Waste Management Act by failing to properly treat and dispose of ash,and the Clean Air Act by failing to contain fugitive ash.As part of a$7.5 million settlement reached on May 2 with AG Coakley's Office and the Massachusetts Department of Environmental Protection(MassDEP),$3.5 million from a"Municipal Relief Fund" is being distributed by the AG's office to towns that paid Wheelabrator for trash incineration services in 2009. The Commonwealth alleged that the environmental violations gave rise to liability to the municipalities that contracted with Wheelabrator for trash disposal. North Andover is receiving $227,954 based on the alleged violations committed by Wheelabrator.North Andover's recovery includes additional amounts paid because it is the location of one of the facilities at issue. "These recoveries are rightfully owed to communities that contracted with Wheelabrator,"AG Coakley said. "Especially during these times when municipalities are dealing with difficult budget cuts, these refunds should help support essential services." "This very creative settlement allows the Commonwealth to provide monies from the Municipal Relief Fund to communities that trusted Wheelabrator to manage municipal trash properly in accordance with our environmental regulations,"said MassDEP Commissioner Kenneth L. Kimmel]. "Wheelabrator must be held accountable to its contract communities and get its operations in Massachusetts back on track. One hundred percent compliance with our environmental regulations is the only acceptable outcome for Wheelabrator." Under the terms of the comprehensive settlement announced on May 2, Wheelabrator agreed to pay a total of$7.5 million,directed as follows: i ® $4.5 million to create a Municipal Relief Fund,$3.5 million of which the AG's Office will distribute to municipalities,after paying a statutory share to the whistleblowers who brought the matter to the government's attention; ® Two payments totaling$2 million for civil penalties arising from multiple environmental violations; ® $500,000 donation to the Massachusetts Natural Resource Damages Trust; and ® $500,000 for a supplemental environmental project or projects,to be approved by MassDEP and the AGO,designed to improve the environment in the vicinity of Wheelabrator facilities. The Muncipal Relief Fund arose out of the Attorney General's contention that Wheelabrator's environmental violations at the two facilities created liability to the municipalities who paid Wheelabrator for services. The funds are not restricted-each municipality will determine how to use the money. In addition to the monetary component of the May 2 settlement, Wheelabrator must immediately hire an independent environmental auditor to monitor the company's compliance with environmental regulations. The company will be subject to unannounced inspections by the auditor for the next three years. This case is the result of a comprehensive investigation that was conducted by the Massachusetts Environmental Strike Force in response to credible information provided to the Attorney General's office by whistleblowers. i The Massachusetts Environmental Strike Force is an interagency unit,which is overseen by AG Coakley, MassDEP Commissioner Kimmell and Energy and Environmental Affairs Secretary Richard Sullivan.The Strike Force is comprises prosecutors from the Attorney General's Office,Environmental Police and State Police Officers assigned to the Attorney General's Office,and attorneys, investigators and engineers from the MassDEP. The Strike Force investigates and prosecutes cases involving harm or risk to the state's water, air or land, and that pose a significant threat to human health. ########## �R1To�fPy.�y �SSACHUSE� INTEROFFICE MEMORANDUM TO: Mark Rees DATE: May 16, 2011 Town Manager FROM: Ray Santilli Assistant Town Manager SUBJ: Disposal of Surplus Equipment and Vehicles Attached is a list of surplus equipment and vehicles submitted by the municipal departments to be disposed of in accordance with the `Policy/Procedure on the Disposition of Surplus Items' previously adopted by the Board of Selectmen. According to the Policy/Procedure, no disposition of surplus items shall be initiated unless approved by a majority of the Board of Selectmen. In regards to the surplus Fire Department vehicles and equipment, Chief Melnikas has requested that the fifteen(15)turnout coats, five (5)bunker pants, and the 1985 Federal Pumper truck be donated to the 911 FUND Inc. The 911 FUND Inc. is a 501(c)3 not-for-profit charity that collects surplus and/or decommissioned fire equipment that is in decent working condition then donates it to needy fire departments on a world-wide basis. The Policy/Procedure adopted by the Board of Selectmen, Section V - Alternative Methods for Sale or Disposal of Surplus Items, Paragraph B—Charitable Donations, states: 1, Surplus items may be disposed of at less than fair market value to any organization that has an IRS tax exempt status by reason of its charitable nature. 2. Any such donation with an estimated net value of less than $5,000 must be recommended by the Town Manager and approved in advance by a majority vote of the Board of Selectmen. 3. Any such donation with an estimated net value of$5,000 or more will require a majority vote at a duly called town meeting. Thus,the Board of Selectmen has final approval to donate the turnout coats and the bunker pants. If the Board votes to donate the 1985 Federal Pumper truck, it will also required formal approval from a future Town Meeting. SURPLUS EQUIPMENT Fire Department 15 Turnout Coats 5 Bunker Pants Youth & Recreation Services 2 Cybex 700t treadmills 1 Life Fitness Universal 1 Smith squat machine 1 Life Fitness 9100/9500hr cross trainer 1 Life Fitness 9000 series recumbent bike 2 Weight plate stands 1 Life Fitness free weight stand Assorted weight dumbbells 2 Panasonic 32"pip televisions Community Development Division Description/Name Model# Serial# Reason APC battery back-up SU1000XLNET QS0141210188 Not used HP Color Laser Jet 3600n BOISB-0504-00 CNWBB80827 Broken Generic keyboard 021411936 Replaced HP Desktop Printer 880c C6409A MY92NIB38B Broken HP Fax 1220xi C6747A MY29JD623T Replaced HP Office Jet Printer-Scanner 630 MY93DC20FT Broken Gateway XP Laptop 450ROG 0034740982 Replaced HP ScanJet 3300c C7680A MY02JI2120 Replaced Surplus Vehicle/Equipment Summary YEAR MAKE MODEL VIN MILEAGE JUSTIFICATION DESCRIPTION 1979 International Bus BA172JHB19271 Unknown Red —white-blue bus used as a platform/grandstand for Common events does not run —was vehicle #215 1984 Ford Cut Van 1FMEE11Y9EHA69792 30495 Transport Van rusted underneath, transmission gone was #205 1989 John Deere 1650 003592 5089hrs Mowing tractor— engine has blown head gasket— unable to find arts was vehicle #69 1991 1 GMC To kick 1GDK6H1J3MH520993 90730 Former #20 recycle truck— town no longer recycles 1991 GMC Topkick No paper work N/A Recycling truck obtained for spare parts obsolete no longer needed. No vehicle # Roof caving in from water damage due to crack in the outer roof, 1992 Chevy P30 1GBGP32K1N3321453 14021 exhaust system rotted, electrical wiring needs replacing, brake lines are rotted. Merrimack College Donated it to town. No vehicle # 1994 Johnson Sweeper 1JSUM3H44RP041015 24891 Sweeper— 200 gal water storage tank not repairable due to rust— was vehicle #39 6-wheel Dump bed has extensive holes due to rusting, transmission is 1995 Ford dump 1FDYF80C4SVA46426 80k? slipping, needs all new brakes, frame extensively rusted, fuel tank has hole due to rusting —was vehicle #36 1997 Ford Econoline 1FTHE24L1VHB13369 66800 School lunch van — extensive rust under frame, brake line rusted, transmission slipping —was vehicle #230 1999 GMC Sierra 045369 98837 Vehicle #43 - Body totally rusting and cabinet bottoms rusted; replaced by new truck. 2000 International 7400 1HT5CAAL5YH313799 52925 Former #19 recycle truck— no longer recycle 2000 Ford Windstar 2FMZA5149YBB88039 119000 Former COA vehicle — rusted doors, extensive body rust, rear axle broken due to rusting —was vehicle #211 Trash Truck— 1) motor- bad valve, skips/smokes; 2) transmission- no reverse / slips in forward gears; 3) body rotted &tail gate keeps 2000 Chevy GMT400 1GBJK4R1YF500190 80000 failing off, lift motor has valve problem it dumps fluid on ground or does not operate at all; 4) gas tanks rotted & at top where pumps are seated — so when running pumps are air locked &shuts the truck down due to lack of pressure for fuel injection —was vehicle # 40 Page 1 of 3 Surplus Vehicle/Equipment Summary YEAR MAKE MODEL VIN MILEAGE JUSTIFICATION DESCRIPTION 2000 Ford Expedition 1FMPU16L4YLB47471 109800 This Fire Dept vehicle has reached its end of life cycle for emergency public safety utilization —was vehicle # 102 2000 Ford Expedition 1FMPU16L4YLB47472 100690 This Fire Dept vehicle has reached its end of life cycle for emergency public safety utilization —was vehicle # 101 2001 Ford Crown 2FAFP1W61X191465 94559 This Police Dept vehicle has reached its end of life cycle for Victoria emergency public safety utilization —was vehicle # 323 2008 Dodge Charger 2133KA431-188H280113 105492 This Police Dept vehicle has reached its end of life cycle for emergency public safety utilization —was vehicle # 305 N/A US Army Trailer Red trailer — home made N/A Rusted, un-safe to operate. From Fort Devins Surplus Sale. AC volts 120/208 AC amp N/A ONAN Generator 1C Natural gas Generator obsolete and not operating. 1435 hrs N/A Lincoln SAE 400 — N/A N/A ARC Welder - Gas powered F245 N/A Unknown Dumpster N/A N/A 60 yd dumpster not compatible with current equipment no longer needed. N/A Unknown Dumpster N/A N/A A second - 60yd dumpster not compatible with current equipment no longer needed. Page 2 of 3 Surplus Vehicle/Equipment Summary YEAR MAKE MODEL VIN MILEAGE JUSTIFICATION DESCRIPTION 1985 Federal Pumper 1F9DBAA89F1037379 130,000 The Fire Dept has replaced this vehicle with a new triple combination pumper truck Bucket This Fire Dept vehicle has reached its end of life cycle for emergency 1987 GMC Truck 1GDJR34J2HJ511919 18,667 public safety utilization Page 3 of 3 1 V/11 Se;rdb.r Center _ r � �,.,� ° � � �� � � '�� relephone (978) 688-9560 120 It.Marrr Str'e,c~t � � � ,, Fax (978) 688-9563 North Andovexr°,MA 0 f 844 i�� Irene;O'Brien Direcloi North. A.10over C-buncil on Aging May 4, 2011 aw.,f MAY, Q 011 Board of Selectmen Nel l T 440 Town of North Andover OFFICE OF TOWN G 120 Main Street North Andover, MA 01845 Dear Board: The Council on Aging respectfully requests an increase in our Board from 9 to 11 members as allowed by our By-Laws under Article 3. We are attaching a copy for your review. It is our hope to fill these additional positions by the start of FYI 2. - i cerely, Maria Rosati Chairperson r vll� 00 ,4 A is JNV TOWN OF NORTH ANDOVER COUNCIL ON AGING By-Laws Article 1 -NAME, LOCATION AND FISCAL YEAR a. The official name of the Council shall be: The North Andover Council On Aging b. The principal office of the Council shall be: Senior Center 120R Main Street North Andover, MA 01845 c. The fiscal year runs from July 1 st through June 30`n Article 2 -Purposes Among the purposes of having a Council are: a. To identify the needs of the elderly population and the available resources within the Community. b. To educate the community at large regarding the issues and needs of its elders. c. To design, promote and implement services that are needed to maintain the highest level of independence possible. d. To supervise and set policy for the operation of the Senior Center and to delegate such authority and responsibility as is necessary for its effective functioning. e. To enlist the support and participation of members of the community and other elder service agencies to assist in the implementation of services and programs covering the areas of physical, emotional, employment, economic, recreational and housing concerns. Article 3 -Membership The Council shall consist of not less than seven nor more than eleven voting members, including officers. Council members shall be appointed by the Selectmen from interested and representative people in the community and with consideration of the recommendations by the existing Council. Recommendations for appointments, to be made by the Selectmen, shall be by majority vote of the members of the Council. Each member of the council shall be sworn in by the Town Clerk within seven days of appointment, unless such time is extended by a majority vote of the Council. No Council may vote until sworn in. If a member is reappointed in successive years it is not necessary to be sworn in by the Town Clerk for the consecutive term. If there is a gap in service, then it will be necessary. Council Members may resign by notifying the Council and Selectmen in writing. -2- Fraudulent Sale of Town Owned Assets Investigative Control Audit Review Ad-Hoc Committee Report Approved on April 20, 2011 Members: Chainnan, Melinda Coppa (Volunteer); Karin Rhoton (School Committee and Audit Committee Member); and Robert Ercolini (Volunteer and Audit Committee Member). Table of Contents Opening Statement - 2 -2 - Purpose .................................................................................................................................................- 2 - - Discovery..............................................................................................................................................- 2 - Process................................................................................................................................................... 3 - Summaryof findings ............................................................................................................................- 3 - Board of Selectmen -4 -4 - ExternalAuditors.............................................................................................................................- 5 - Town Accountant - 6 -6 - Town Manager - 7 - Recommendations.................................................................................................................................- 8 - Comments - - AppendicesTable Of Contents...........................................................................................................- 11 - Appendix 1 —"Keeping Fraud In The Cross-Hairs"—Journal of Accountancy, June 2010........- 12 - Appendix 2—Charge and Audit Guidelines for Ad-Hoc Audit Committee ............................... - 20 - Appendix 3 —The Initial Report and Town Manager Response................................................... 22 - Appendix4—Police Report..........................................................................................................- 29 - Appendix 5—Signed Title By Mr. Lydick....................................................................................- 37 - Appendix 6—Check Reimbursement, cancelled check, and processed voucher.......................... 39 - Appendix 7—Memorandum Of Vehicle Inventory......................................................................- 47 - Appendix 8—Accounts Payable Procedures................................................................................- 48 - Appendix 9— Purchasing Director Job Description...................................................................... 50 - Appendix 10—Town Organizational Chart..................................................................................- 52 - Appendix 11 —2007 Management Letter.....................................................................................- 53 - Appendix 12—2008 Management Letter...................................................................................... 68 - Appendix 13 —2009 Management Letter.............................................................................I.......- 84 - Appendix 14—Select North Andover Charter and Byl aws........................................................... 96 - Appendix 15 —MGL Town Accountant Duties ............................................................................ 98 - - 1 - Opening Statement We would like to express our thanks to all the Town employees and the external auditor and for their cooperation and participation in this investigation. We would like to note that this incident is an anomaly, and is not reflective of the everyday efforts made by the employees and public servants of the Town of North Andover. Purpose On September 20, 2010 the Board of Selectmen ("BoS") created an ad hoc committee consisting of the above mentioned members whose purpose is to review and comment on the Initial Report entitled Fraudulent Sale of Town Owned Assets, Investigative Control Audit, written by Selectmen Nardella and approved by the Audit Committee Members ("IR") . This IR was written by Selectman Richard Nardella based on an investigation he conducted alone, as chairman of the ad hoc committee established by the BoS on November 23, 2009. Incorporated in his IR were other comments and recommendations, outside the scope of the special investigation, made by Mr. Ercolini. At the same time, Ms. Karin Rhoton had just joined the audit committee and made no recommendations. Duties Our committee's duties were to review and comment on the IR as set forth by the BoS. Since the assets (all surplus items) fraudulently sold and identified in the IR pertained only to municipal assets, we did not meet with or review any documents pertaining to the School Department's policy or procedures and we did not review the other duties and actions of the Purchasing Director. The Committee reviewed the IR, submitted to the BoS, and the facts available to the Town to determine how the defalcation occurred and make recommendations to avoid a similar incident in the future. Our objective was to place responsibility on the failure(s) of all individuals to act in a particular circumstance, and to highlight where culpability justly belongs and future policies and procedures should be directed. Finally, we recognize that employees and management will make choices in prioritizing their duties and responsibilities. Our role is to identify the areas of weakness exposed and recommend changes. Discovery In coming to our conclusions, we: 1. Gained an understanding of the informal procedures employed relative to the identification and sale of assets; 2. Reviewed the Town Charter, Town Bylaws and other Massachusetts General Law ("MGL") outlining duties and responsibilities of the BoS, Town Manager and Town Accountant; 3. Obtained copies of documentation related to this event and/or provided to and used by the author of the IR. However, we also had the benefit of the police investigative report, which - 2 - Mr. Nardella did not have due to the continuing nature of active police case taking place when he investigated the issue; 4. Conducted interviews with the author, Town employees and a Partner of the Town's external auditing firm relevant to the fraudulent sale of assets; 5. Evaluated all discovered evidence made available to us; 6. Prepared preliminary findings and compiled evidence; and 7. Made a determination regarding the materiality of the findings to the overall financial reporting and internal control systems of the Town for inclusion in our report. Process Our committee met in public session 20 times in excess of 30 hours. In addition, we spent 100+hours, outside these meetings, reviewing documents provided and researching governing laws, such as MGL, the Town of North Andover Charter and Town of North Andover Bylaws. During the course of our investigation, we interviewed the following people for less than an hour each, with the exception of Mr. Nardella who spent nearly three hours with the committee: • Lyne Savage, Town Accountant; • Richard Stanley, Chief of Police; • Raymond Santilli, Assistant Town Manager; • Jennifer Yarid, Treasurer Collector; • Bruce Thibodeau, DPW Director; • Matthew Killen, IT Director; • Mark Rees, Town Manager; • Richard L. Sullivan, Powers & Sullivan CPA's; and • Selectmen and author of IR, Richard Nardella. We received a number of documents requested which included but were not limited to: the Town's Organization Chart, the Purchasing Director's job description, the police report of the incident, copies of the reimbursement check and approval support documentation, Accounts Payable Policy and Procedures (7/16/2008), external auditor Management Letters ("ML") for 2007, 2008 and 2009, draft Procedures for expense reimbursement and draft procedures for the disposition of surplus items. Summary of findings Generally, our committee agrees with the conclusions and recommendations of the IR, other than the matters related to the School Department due to our self-imposed scope limitation. However, we do not believe the IR addressed certain key points and issues which we address in our findings and recommendations. In addition, we were unable to find evidence that supports certain comments and believe that some observations or statements, though minor, may have cast a misleading impression. These were not, however, material enough to overshadow the substance of the conclusions and recommendations contained in the IR. The IR clearly faults the Town Manager. The Town Manager in response issued a statement, in a memo dated August 9, 2010,where he assumes full responsibility for the shortcomings in the financial controls within his authority. The Town Manager's authority covers most aspects of Town Government, other than duties specifically delegated to the School Committee and its employees, - 3 - The IR did not appropriately place the levels of responsibility on the current or previous BoS, Town's external Auditors or Town Accountant; each of whom should have previously addressed or at a minimum commented on the following: 1. appropriate and adequate internal controls, that were written and formally approved and reviewed periodically; and 2. adherence to applicable provisions in the Town's Charter and Bylaws. The accounting and financial departments have improved over recent years and function well due to the dedication of the Town Accountant. However, the Town does not have a complete set of formalized procedures and policies documenting all required actions and safeguards, including the sale and disposition of assets. Accordingly, while the weaknesses and issues pointed out in the IR criticize current employees for their failure to act on certain matters, the weaknesses pointed out in this report are systemic to the Town's failure over the past twenty-five years; not just the past years under the current Town Manager and Town Accountant. More importantly, the current Town Manager and Town accountant recognize these issues and have indicated to us that they are working diligently to correct deficiencies. The following highlights the specific deficiencies by particular area(s) of specific responsibility attributable to the following: Board of Selectmen 1. The Town Charter, Chapter 3, section 3-2-3 states that the BoS will act as the chief policy making agency. Their task is to regularly direct the Town Manager in carrying out his administrative duties. Each year the Town's external auditor makes recommendations for improvements to the Town's internal controls, financial reporting and other governance issues in their ML. In the past three years, the BoS did not instruct the Town Manager to act on at least three important recommendations made in the ML including a Town Charter requirement which directly relate to the internal controls needed to adequately safeguard assets sold. They are as follows: i. Conduct a Physical Inventory Annually: The 2007 ML specifically mentioned conducting an annual physical inventory of all assets. More importantly, this is set forth as a specific responsibility and requirement of the Town Manager's duties, as outlined in the Town Charter, Chapter 4, Section 4-3-2. This section requires not only an annual physical inventory but reconciliation with perpetual inventory records. No comprehensive physical inventory has been done since 2005. This inventory was done to identify and track specific capital assets with a certain dollar value solely for accounting and financial statement purposes. While the Town hired an outside consultant to establish a detail listing of capital assets in compliance with Government Accounting Standards Board ("GASB") 34, the 2005 inventory of capital assets with a value above $15,000 was not a complete inventory of all Town owned assets. ii. Risk Assessment and Monitoring: This recommendation appeared in the 2007, 2008 and 2009 MLs. Some discussion regarding this did occur and a member of the BoS offered to assist in completing this assessment. However, appropriate controls on inventory and a written risk assessment were not implemented as recommended in the - 4 - 2007 ML. Recently, the Town has hired an outside consultant to assist in a risk assessment on financial related matters. iii. Financial Policy & Procedure Manuals: This recommendation appeared in the 2007, 2008 and 2009 MLs. While we want to recognize that the Town, in particular the Town Accountant, has taken initial action to formally issue certain written Policies & Procedures ("P&P"), none related to the requirement to maintain a physical asset listing or the procedures to be used when disposing of surplus assets at the time of the sale of Town owned assets. We do recognize that BoS is now reviewing a P&P for the sale of Town owned assets. Currently each department is autonomous with respect to whether it has inventory management of Town owned assets and no formal Town wide P&P exist with respect to inventory control. 2. In March, 2009 a number of assets were disposed of using eBay without incident. However, we were not provided evidence that the BoS formally voted to approve any asset disposition as required under the Town Bylaws, Chapter 61. Though the Town Accountant reviewed the minutes to cite the formal vote, she was unable to locate the vote in the documentation of BoS Open Meetings. i 3. The BoS responsibility is to ensure the Town Accountant maintains his/her independence as further defined under MGL, Chapter 41, Section 55. The Town Accountant should appear under the BoS in the Town Organization Chart, while the Budget Director should fall under the Town Manager's direction. However, since the Town Accountant assumed the additional role of the Budget Director, both positions currently appear under the Town Manager. This placement raises a concern in regard to the separation of certain duties and responsibilities. Due to the provisions of the Town Charter, the committee believes the Town Accountant's direct responsibility to the BoS should be clearly delineated. External Auditors The Town's external auditors annually audit the financial statements of the Town and express an opinion. This issued opinion stating in part"... the financial statements ... in all material respects... fairly present the financial position... and the respective changes in financial position..."deals with the concept of materiality to the Town's financial statements. These statements consist of assets of over two hundred million dollars and revenues of nearly one hundred million dollars. As such the audit is not designed to find fraud or theft in the tens of thousands of dollars unless it is of a material matter that would cause the overall financial statements to be misleading. The amount of the defalcation is not material enough to impact the integrity of the Town's financial statements. However it did identify the need to strengthen existing internal controls. During the course of their audit, the auditors are required to consider the effectiveness of internal controls present within Town government when designing their auditing procedures, albeit not for the purpose of expressing an opinion. The auditors subsequently comment on observations made in their annual ML to the BoS in the form of opportunities for the Town to strengthen existing internal controls and enhance operating efficiency. As such the BoS, the Town Manager and School Committee, should carefully review these recommendations and/or comments and detenmine whether any changes should be implemented. - 5 - Generally the recommendations are repeated in subsequent year by auditors as part of their follow up procedure when conducting a subsequent audit. The following items are examples of recommendations made where no action to implement change or follow-up came about: 1. The June 30, 2007 ML made detailed suggestions that a physical inventory of capital assets be done on an annual basis to reconcile with the records being kept by the Town Accountant. The 2008 and 2009 audits did not mention this previous recommendation. While the 2007 recommendation related to compliance with GASB 34 for a reconciliation of inventory of capital assets, MLs from the Town's external auditors for fiscal years 2007, 2008 and 2009 did not address Management's non-compliance with provisions of the Town Charter and the Town's By-Laws nor suggest that an inventory of all assets should be maintained and reconciled with a physical inventory annually by the Town. After this committee interviewed the external auditor, the recently released draft of the 2010 ML recommends the Town's controls be strengthened to protect the significant investment in property and equipment. It states "...that the Town adhere to the provision in the Charter requiring annual physical counts of property, especially removable equipment items, and compare the physical counts to the detailed fixed assets subsidiary ledger." 2. The external auditors should have consistently raised this issue in the 2007, 2008 and 2009 ML's and required detailed responses from management as to the reasons for its failure to implement appropriate procedures and controls. 3. The Town did not have an employee reimbursement expense policy in place at the time of the defalcation. Therefore any reimbursements were treated like purchases and fell under the existing policy that any purchase for amounts up to $5,000 only required the signature of a department head. While appropriate documentation is required to be submitted to accounting to process payment for reimbursements, the ability of any department head to obtain an expense reimbursement without any other approval signifies insufficient financial controls. The external auditors in 2007, 2008 and/or 2009 ML should have noted this deficiency and recommended strengthened internal controls. 4. The external auditors should have noted in their review of the Town's Organization Chart the placement of the Town Accountant and made a recommendation to remove this position from under the control and direction of the Town Manager. Town Accountant The present Town Accountant has made significant contributions to the Town's internal controls; however due to her expanded job responsibilities she has been unable to implement a complete set of appropriate P&P to properly safeguard the Town's assets. The following are further examples of deficiencies: 1. Town Accountant did not report to the BoS that the Town Manager did not "develop, keep, and annually update a full and complete inventory of all property of the Town, except School Property, both real and personal." (Town Charter, Chapter 4, Section 4-3-2). 2. In accordance with MGL and the Town's Charter, the Town Accountant should have ensured that the position of the Town Accountant was delineated from the Budget Director and placed under the BoS on the Town Organization Chart. 3. The Town Accountant should have followed up on all ML comments, even if the external auditors did not inform the BoS periodically as to the failure of management to implement certain recommendations made by the external auditors. Specifically, no evidence was presented to demonstrate that the Town Accountant took action to ensure that the procedures - 6 - required to effect a sale or disposition of Town owned assets were documented and reviewed for appropriate internal controls, prior to the anticipated sale of assets. 4. The Town Accountant removed assets from the GASB 34 Asset Listing solely based on the word of the former purchasing agent, with verbal confirmation from the DPW Director, without confirmation in writing from the department head as to the reasons why the equipment was removed. 5. The Town Accountant should have reported to the BoS the deficiency of financial control related to the employee reimbursement approval policy. There was no employee reimbursement approval policy in place at the time, other than accounting department's documentation review process, and as a result the Town did not have adequate financial controls. In lieu of an employee reimbursement policy, the existing purchasing policy was applied and allowed department heads to approve their own reimbursement expenses up to $5,000 and did not require department head approval on charges to their respective department. The process in place allowed Mr. Lydick to receive reimbursement for commission based fees paid to eBay without raising any questions as to how much was actually received for the sale of the asset or how much was actually received by the Town. Town Manager j While the Town Manager has acknowledged that he was responsible for the circumstances that allowed the defalcation perpetrated by the Purchasing Director, it is appropriate to enumerate specific items that might have prevented or exposed earlier the crimes committed. They are as follows: 1. The Town Manager did not comply with his specific duty to "develop, keep, and annually update a full and complete inventory of all property of the Town, except School Property, both real and personal." asset forth in the Town Charter(Town Charter, Chapter 4, Section 4-3-2). 2. The Town Manager did not adequately address the 2007 ML comment regarding inventory. The ML stated, "The Town maintains a perpetual inventory of its capital assets and records capital asset activity(additions, deletions, depreciation, etc.) on its general ledger for financial reporting purposes. However, the Town does not perform an annual physical inventory of its capital assets to reconcile with the perpetual inventory records." The Town Manager noted"with the purchase of the new financial software this will allow management to implement and perform annual inventory of capital assets by function on a sample basis for the close of fiscal year 2009." During our investigation, the Town Manager repeatedly took the position he adequately addressed this comment and often referred to the sampling of inventory assets in 2008 and 2009 as conducting a physical inventory. However this sample was taken from the GASB 34 asset listing which requires state and local governments to begin reporting all financial transactions, including the value of their infrastructure assets,roads,bridges, water and sewer facilities, and dams, in their annual financial reports on an accrual accounting basis. These capital assets include subsets comprised of land, land improvements, buildings, building improvements, vehicles, machinery, equipment, software, works of art, historical treasures and infrastructure. The GASB 34 Asset Listing with a $15,000 valuation level is not, in our opinion, a complete asset listing. In addition, conducting a sample inventory review does not adequately address the concerns raised in the ML and the reference to properly addressing this comment is misleading. 3. The Town Manager did not establish adequate internal controls, including written policy and procedures, as well as provide for the proper segregation of duties of employees involved thereby safeguarding the physical assets of the of the Town. Too much authority with no appropriate documented controls as to policies and procedures related to the position was given to a recently hired Purchasing Director. This allowed the Purchasing Director to hold titles of Town owned - 7 - assets, sign transferring of some titles and simultaneously authorized to sell these assets, without BoS approval as required in the Town By Laws. 4. The Town Manager gave too much autonomy the Purchasing Director by allowing him to establish the procedure for disposing of assets on eBay without ensuring adequate safeguards and internal controls were put in place. 5. The Town Manager gave Department Heads the authority to sign their own employee reimbursement expenses up to $5,000 before seeking approval from the Town Manager or his/her designee. Had this not been the case, the illegal selling of Town assets may have been discovered earlier and/or the Town would not have reimbursed the Purchasing Director for expenses he incurred in selling Town assets. 6. The Town Manager, in his absence, has assigned his responsibilities for signing the Town warrant to the Assistant Town Manager, without formal BoS approval. In addition, the Town's Charter specifically relegates this task, in the Town Manager's absence, to three members of the BoS. While the expense reimbursement check for the eBay costs were included in a Town Warrant signed by the Town Manager(upon his return) it appears that at most only a cursory review of expenditures documentation is made by the Town Manager or Assistant Town Manager in performing this function. 7. Although the Town Manager spoke of the asset sales during a weekly staff meeting, he did not oversee any formal process put in place by his staff to ensure proper controls were in place to prevent fraudulent activities. The following are specific examples where the internal controls were either insufficient or actually modified by others to allow the theft: a. The IT department had to make configuration changes in the Town's system of controls to allow access by the Purchasing Director to establish the Town of North Andover as a seller on the eBay web site. The IT manager did not seek the Town Manager's approval to remove certain internal controls because this matter had been discussed at the staff meeting. b. While the Town's Treasurer is responsible for the collection of all receipts for the Town, She was not involved, at her own direction or the Town Manager's direction, in determining the process for collecting payment resulting from the sale of Town assets c. The Director of the Public Works, allowed the Purchasing Director to effect, without review or oversight, direct sales of Town owned property on the grounds of the Public Works without any involvement by Public Works personnel. In a reported case, one particular purchaser actually argued in the Public Works yard with the Purchasing Director about not wanting to pay him (the Purchasing Director) in cash and actually refused to do so and left. Recommendations 1. The BoS should devise a procedure on conducting future investigations while allowing management the latitude to adopt immediate controls as the situation warrants. Such a procedure may consider items such as: a. If a criminal investigation is ongoing, an internal investigation should not begin until the criminal investigation is closed; and b. Exclude officials elected or otherwise that may have conflict of interest. 2. The BoS should require that the Town Manager and Town Accountant annually certify the Town's compliance with the duties of the Town Charter and the Town's By Laws and that each of them report any items of non-compliance as soon as possible to the BoS in writing. - 8 - 3. The BoS should request that the Town Manager adopt a forinal procedure to ensure that an adequate annual physical inventory of each department is taken and compiled on a Town wide basis and that adequate and internal controls are established with respect to these assets. The Town should consider investing in a software package that performs inventory tracking that appropriate determination of significant merchandise purchased and disposed of throughout the year. 4. Recommend the BoS address "opportunities" in ML and take appropriate action and follow up for those identified. 5. Recommend BoS review, amend, and ratify Town Organization Chart so that the Town Accountant maintains her autonomous relationship and reports directly to the BoS. 6. Expand the Audit Committee's duties to follow up on ML recommendations with the Town Manager and Town Accountant at regular intervals and to report to the BoS periodically on a variety of designated matters. In addition, the Audit Committee should review randomly selected policies and make recommended changes to the Town Manager. 7. All P&P should be made available in a centralized location on the Town's website that is accessible to all citizens. This enhances transparency and accountability of government. All P&P should be reviewed and updated periodically. i 8. Direct the IT Director to author a procedure addressing the approval process of obtaining accounts for the on-line sale of assets. The IT Director should design a process of request of approval to be signed by the Town Manager and a copy sent to the Town accountant offering the opportunity to express concerns when operating outside of standard protocol. 9. Recommend BoS update its policy on the disposition and sale of assets, inventory, management and purchasing to reflect recent changes in business practice. i 10. Incorporate in future audit engagement letters a specific requirement that the auditors review and comment on all unresolved issues raised in the prior three years ML. 11. Recommend the BoS seek the cooperation of the School Committee to implement recommendations on a Town-wide basis and adherence to sound business practice as a result of this investigation. 12. The BoS formally, by vote, address the Town Charter requirement for a signature on the Town Warrant in the absence of the Town Manager. Currently, the Asst. Town Manager assumes this duty despite the Charter requirement of three BoS members. We recommend the BoS formally adopt a method which reflects appropriate internal controls. Since the Assistant Town Manager assumed the responsibilities of the Purchasing Director, proper internal controls are not in place. 13. Recommend the BoS and School Committee review, update and amend existing P&P regulating employee expense reimbursement so as to strengthen internal controls. 14. Recommend the BoS establish a policy which secures the DPW storage yard. - 9 - 15. Finally, we are attaching a copy of an article that appeared in the American Institute of Certified Public Accountants, Journal of Accountancy—June 2010 issue entitled: Keeping Fraud in the Cross Hairs (Appendix 1). This article should be reviewed in conjunction with the current risk assessment being conducted by the Town and appropriate recommendations implemented. Comments A draft of this report was sent out to Town Manager, Mark Rees and Town Accountant, Lyne Savage for comments. We met with both to discuss their comments and made minor, clarification changes to the initial draft of this document. We then sent this document back to Mark requesting him to forward the draft report to all those people we interviewed (listed on page 3 of this document) for comment. We received comments only from BoS Rick Nardella, the Town Accountant and Town Manager. We again made minor changes to the draft report. Copies of these comments are available upon request. Res ectfully Submitted, Melinda oppa, Chairperson I Karin Rhoton, (Schoo ee an ltditCommmiltee Member) Robert Ercolini, (Audit Committee Member) - 10 - Appendices Table of Contents Appendix 1 —"Keeping Fraud In The Cross-Hairs"—Journal of Accountancy, June 2010............... 12 - Appendix 2—Charge and Audit Guidelines for Ad-Hoc Audit Committee .......................................20 - Appendix 3 —The Initial Report and Town Manager Response -2 2 -........................................................ 22 - Appendix4—Police Report................................................................................................................-29 - Appendix 5—Signed Title By Mr. Lydick..........................................................................................- 37 - Appendix 6—Check Reimbursement, cancelled check, and processed voucher...............................- 39 - Appendix 7—Memorandum Of Vehicle Inventory............................................................................-47 - Appendix 8—Accounts Payable Procedures......................................................................................-48 - Appendix 9—Purchasing Director Job Description - Appendix 10—Town Organizational Chart........................................................................................- 52 - Appendix 11 —2007 Management Letter - Appendix 12—2008 Management Letter - Appendix 13 —2009 Management Letter - Appendix 14—Select North Andover Charter and Bylaws................................................................- 96 - Appendix 15 —MGL Town Accountant Duties - i - 11 - Appendix 1 — "Keeping Fraud In The Cross-Hairs" — Journal of Accountancy, June 2010 f s It ,�_J Report highli hts conrfxn.on,Costly schemes and makes prevention the Larget.. by Kim Nilsen ive percent of annual revenue—that's the esti- Wells discussed with the JofA the 2010 report and how Curls G`II°�' mate of how much money the typical organi- can put the findings into practice. Excerpts from the discus- L Zation 105eS to fraud,accordin t0 participants sion follow Read more online.at tinyurl-com/32zv98p or read g p p in the 2010 Report to the Nations on Occupational Fraud the full report,released June 2,at acfe.com/run. and Abuse. jof.9r What was the most surprising finding in thisyear's report? Wells:Perhaps the most striking if not exactly surprising—find- ',.. The report,prepared by the Association of Certified Fraud Ex- ing is the overall consistency of our data from one study to the '..... aminers,an international organization of more than 50,000 fraud next,in terms of the losses,schemes,detection methods and per- examiners,CPAs,lave enforcement professionals,govemment of- petrators of*occupational fraud.This is our sixth study of this ficials and others,examines a wide swath of business-related fraud nature,and each time we ve noted remarkable evenness in these in an effort to pinpoint problems and highlight solutions.The trends,Now,with international data for the first time,we can see fraud cases at issue in the report lasted a median 18 months be- that the fraud problems of non-U.S. companies are much the fore being detected.While million-dollar-plus financial statement same as our overt. frauds made up a small percentage of the crimes,the majority were less complex asset misappropriation cases involving billing, _jofil:Accounting departments appear to be particularly vul- check tampering,payroll and expense report schemes. nc•rable to fraud schemes,according to the report.Any obser- Joseph T.Wells,CPA,CFE,has made the study of such frauds va[ions/suggestimts related to that finding? and theirfallout his Life's work.Afterastitn on the auditstaff of Coop- Wells:if we drill down into asset misappropriation schemes,we '.... ers tr Lybrand,Wells became an FBI special agent.His decade of classify them as"cash"and"other assets."Historically,over 80% '... work with the FBI included investigating for-merU.S.Attorney Gen- of all asset misappropriations are cash.The accounting depart- eral John Mitchell's role in the'\Vatergate cover-up.In 1982,Wells ment is the financial nerve center of the organization,where re- ',.. Iett the FBI to form Wells lur Associates,a firm specializing in fraud ceipts and disbursements are documented.It would therefore be detection and prevention.He created and became chairman of the logical to be a target of insider misdeeds.One of the three key Association of Certified Fraud Examiners in 1988. elements to the fraud triangle is opportunity,and obviously,the '..... 20 Jounral of Accountancy June 2010 www.joumatofamountancycom 12 - P NA ii s, people who deal with incoming and outgoing cnsh on a daily hasia easy as vcrifying that the)'are listed in the phone book, are going to have greater opportunities. Second,make sure[hat the same employee who is author- Ironically,in most orsalnsations the accounting deparment ized to set up a vendor doesn't have check-writing or check-ap- is the place where controls arc most sttnngly enforced,and yci proval authority we're still seeirrgmore liaud there t}ran anywhere else.r III shovas Third,run vendors'addresses against the home addresses of that traditional controls alone are insufficient to keep occupational employees.If there is a match,probably a billing scheme is afoot. fraud from occurring.A large part of the reason is that account- Thcre is much antifraud detection software on the market that ing department employees are more likely than just about any- will perform these kinds of tests and many more.CPAs and their one in the company to he fmniliar with the controls and how to ctients are encouraged to use them;the programs are quite ar- develop methods to circumvent them. fordable. (For a closer look at some common asset misappro- The repot[takes a detailed look at asset ntisappropria- priation schemes,go to tinyurl.corn/32zv98p.) lions and their toll.What are the most effective ways to sntrf( Financial statement fraud in the U.S.represents a small per- pert threats such as billing schemes,one of the most common tentage(in terms of number of occurrences)of the problem com- and costly occupational frauds? pared to cot r rrption and cosset rniutppropria- 1'cJ(s:billing schemes are common because they're easy w com- tiou,but when measured by dollars, mit,cspedally in a small business cot iIonme_ut. the t�aical'rillin �,`� >1 b its piece of the Pic is mirth scheme is where an employee causes a payment to he issued to greater. How should CPAs either a nonexistent vendor or to a company controlled by t he in bu mess or public prac- employee Many employees in these situations have checks lice determine where to sent to their residence So there are several simple steps drat ` place ereir frrtud ere to Neill help prevent or detect billing schemes. Post,laurw ing emphasis given the vendors by vetting them_ 1-his can sometimes he a i those results? -� . ,,I r t' t'r: ... .... s - 13 - F PALP D Without question,large financial frauds have been the bane Lion scheme in a smaller entity As data in the report reflect,these of the auditing profession and get big headlines. But the lions schemes are quite common, and most companies have or will share of the problem is in small business'85%of U.S.enterprises experience them. gross less than $5 million, and it is those businesses that have In small business,there is really no such thing as an"imma- the greatest risk of occupational fraud.The"average"CPA(if there serial"fraud.Granted,the dollar loss might not be large,but there is such a thing)doesn't audit multibillion-dollar conglomerates are tots of them,and they can undermine trust and morale. If and is much more likely to come across an asset misappropria- someone in a small organization is fired and/or prosecuted for taut{-E rrevc i i I icit t X13 1,1l:,r Is the management climate/tone at the top one of honesty and integrity? Do you need to size up how vulnerable your company might z Are employees surveyed to determine the extent to which be to fraud?Ask the follo'kving questions.CPAs in public prat- they believe management acts with honesty and'integrity? tice can use this list to help clients test the strength of their fraud- =3 Are performance goals realistic? prevention and-detection measures- Have fraud-prevention goals been incorporated into the i -s is ongoing antifraud training provided to all employees of performance measures against which managers are eval- the organization? uated and that are used to determine performance-re- i Do employees understand what constitutes fraud? lated compensation? .:i Have the costs of fraud to the company and everyone in ii. Has the organization established,implemented,and test- it—including lost profits,adverse publicity,job loss,and ed a process for oversight of fraud risks by the board of decreased morale and productivity—been made clear to directors or others charged with governance(for exam- employees? ple,the audit committee)? Do employees know where to seek advice when faced y, Are fraud risk assessments performed to proactively iden- �vith uncertain ethical decisions,and do they believe that tify and mitigate the company's vulnerabilities to internal they can speak freely? and external fraud? 1 Has a policy of zero tolerance for fraud been communi- Are strong antifraud controls in place and operating effec- trated to employees through words and actions? tively,including the following? f €+ is an effective fraud-reporting mechanism in place? Proper separation of duties {t, Have employees been taught how to communicate con- Use of authorizations terns about known or potential wrongdoing? s Physical safeguards Is there an anonymous reporting channel available to em- Job rotation ployees,such as a third-party hotline? Mandatory vacations Do employees trust that they can report suspicious ac- =a Does the internal audit department,if one exists,have ad- tivity anonymously and/or confidentially and without equate resources and authority to operate effectively and fear of reprisal? without undue influence from senior management? r Has it been made clear to employees that reports of sus- r Does the hiring policy include the following? picious activity will be promptly and thoroughly evalu- t5 Past employtnent verification aced? + Criminal and civil background checks Li To increase employees'perception of detection,are the fol- xs_ Credit check lowing proactive measures taken and publicized to em- X Drug screening ployees? Education verification _? is possible fraudulent conduct aggressively sought out, = References check rather than dealt with passively? ??= Are employee support programs in place to assist employ- Does the.organization send the message that it actively ees struggling with addiction,menLaVemotional health,fam- seeks out fraudulent conduct through fraud assessment ily or financial problems? questioning by auditors? ,- Is an open-door policy in place that allows employees to Are surprise fraud audits performed in addition to reg- speak freely about pressures,providing management the up- ularly scheduled fraud audits? portunity to alleviate such pressures before they become Is continuous auditing software used to detect fraud and, acute?. if so,has the use of such software been made Imo-wn ra Are anonymous surveys conducted to assess employee throughout the organization? morale? 22 _journal of Accountancy June 201.0 www.jourrtalofaeeountaneyeotn - 14 - F R A U D fraud,it sends shock waves throughout the company.When a caught committing fraud are less likely to commit it. fraud occurs,no matter the amount,there are no winners.That A simple example illustrates.One control in a small business is why it is important to spend limited audit and organizational is to have the bank statement delivered,unopened,to the owner resources on trying to prevent fraud from occurring. He or she examines the deposits for reasonableness and looks One place to start is with a checklist(see sidebar,"Fraud- for checks paid to inappropriate parties.This is an excellent way Prevention Checklist").Even if a CPA doesn't audit clients,pro- to detect fraud.But in order to prevent it,others in the organiza- viding them with a similar checklist could be valuable.An ideal tion should know the boss is going to go through the bank state- situation, in my opinion,is where CPAs offer small businesses ments.The moral of this story is that auditors should not con- antifraud consulting to help identify control weaknesses and to duct most fraud-related audit tests in secret,but rather let others provide limited services such as periodic reviews of cash accounts. in the company know about them when appropriate. This in- Most small businesses don't need and can't afford a full audit.But creases the perception of detection. they do need help developing basic antifraud measures,and this can be a revenue opportunity for practitioners. }q( :You have observed that audits,per se,are not particularly effective in detecting occupational frauds but have a significant -lq!_A:How cart the accounting profession improve its response role in preventing them.Can you elaborate? to fraud? IVells: Frauds at audited companies were both caught more Wells:The first is that accounting students need to get more anti- quickly and caused smaller losses than those at unaudited or- fraud education at the undergraduate level.That can and must ganizatiott_s.This makes audits an excellent fraud-prevention tool. be fixed.The second is that looking for fraud,even kith adequate However,external audits by themselves detected fewer than 5% training,adds cost to the audit,and the process is by no[Weans of the frauds in our study.In comparison,8%of the cases were foolproof.But many frauds can be prevented with simple,corn- detected by accident.This shows that external auditors are catch- mon-sense measures. It is up to the CPA to understand these ing relatively few occupational frauds compared to other means measures and enlist their clients in helping prevent frauds.There of detection.I've discussed two of the main reasons earlier. is also guidance in Statement on Auditing Standards(SAS)99, But another reason we don't detect many Frauds in audits is which is more detailed than its predecessor,SAS 82, that the clues can be largely behavioral and not necessarily fi- nancial.This covers such things as noticing employees who live What do you think the CPA's role should be in helping beyond their means;who have known financial problems;and/or management understand that a financial statement or inter- who have a bad attitude toward their employers.These behavioral nal control audit does not serve the sane purpose as a foren- clues are least likely to be observed by auditors who spend a lim- sic audit? ited amount of time in a company or department,and most like- 61%ells:The disconnect between client expectations and auditor ca- ly to be observed by people who work there all of the time. pabiliues in detecting laud was formally addressed by the Tread- Nonetheless,the true antifraud value of audits lies in their abil- way Commission in the mid-1980s by using the phrase"expecta- it),to increase perception of detection discussed previously.This tion gap."As much as CPAs over the last 25 years have tried to is particularly true when two things are incorporated into the educate clients about what an audit can't accomplish,public ex- audit process:(1)an element of surprise and(2)an explicit fraud pectations remain largely unchanged.Although engagement let- focus.When employees believe that auditors are on the lookout ters typically address the limitations on fraud-detection capabil- for fraud and can show up anywhere at any time,audits become ities,we also need to emphasize this point in the initial face-to-face an even better fraud-prevention tool. meetings with clients and in audits thereafter. lof,,I:The report points out clearly that tips and complaints are )oft:You have said that,although respondents cited the lath of the No. 1 method of fraud detection. Why is that? internal control as the primary internal control weakness in oc- Welbs:The reasons that employees furnish tips vary. For some, cupational frauds that occurred,you believe that too much err- it is a sense of duty to their employers.Others are upset that a phasic is placed on that factor:Can you describe why? co-worker has committed fraud.And then sonic tipsters do so �Vclls:Saying that there is deficient internal control when fraud for revenge. But the important thing is whether or not the in- occurs is much like saying that when there is a fire,heat is pres- formation furnished is accurate,not the motivation of those re- ent;it doesn't tell its much that we don't know.Hindsight is al- porting the conduct.Third-party hotlines have the advantage of jl;� ways 20/20.One thing we know about internal control is that it -----_.__.-.---_.___.__.-_-----_----- ---_-------.---_----_ provides only reasonable,not absolute,assurance.In short,I think ` For a detailed look at the report's �� we ask internal control to do too much.While controls are nec- findings on common asset misaP' } essary,that isn't what really deters fraud;its the perception of de- propriation schemes,as well as ad- ✓oainolefAcmuotancyaam drtional questions from this interview,go to Vnyuri.com/32zv98p. I tection. Succinctly stated,those who perceive that they will be __ _ / www.journatolacc,ountency.com June 2010 Journal of Accountancy 23 - 15 - Ft3d'U0 anonymity for the person furnishing the information and likely indicative of fraud.Examples include"can't make the number; increase tips. For those companies that want to detect fraud in "override,""fudge"and"get caught."There are many more. their midst, though, that starts with a hotline but doesn't end Companies and auditors might use this kind of software ae there. component of a fraud risk assessment or fraud-detection syste:: Fraud prevention is a joint effort between management and Or,in response to a suspected fraud,auditors or fraud exami. employees.If workers are taught that fraud costs jobs,raises,rep- ers could run textual analysis to help define the scope of the is utations and individual dignity,they become stakeholders in fraud vestigation,seek out additional evidence,and identify suspect: prevention.(For more on hotlines,see sidebar,"Audit Commit- Because of potential privacy issues, these types of prograr tee Considerations for Whisdeblower Hotlines.") should be discussed with counsel before being used. Though such advancements greatly enhance the way frauc Jot.,',. What new or recent technologies are clanging the way are detected, the Holy Grail for CPAs would be a program . CPAs investigate fraud? checklist that would easily point to material fraud. It does r, Wells:There are, of course, many software programs available yet exist,and I doubt that it will in the future.Because in mar to do traditional data analysis. Perhaps the most inventive up- frauds,we are forced to go beyond the numbers to the compli and-coming fraud-detection method is the use of textual analytics. human behavior that causes it in the first place. It is still being perfected,but in a pilot research project by the ACFE and Ernst 6z Young,we developed a comprehensive list aim Nilsen is the JoWs editorial director. To comment on this article or L .g p P suggest an idea for another article,contact her at knilsen @aicpa.org or of key words and phrases that appear in e-mails that might be 919-402-4048. _Lllci)1 COtlrT»iltc r(^c»1;i<le)atioTls for this purpose,see tinyuri.eom/34utsdl. Ea Has the entity established protocols for the timely dis- tribution of each type of complaint, regardless of the Audit committees should consider the following questions mechanism used to report the complaint,to appropri- { when assessing the design effectiveness of a hotline: ate individuals within the company and to the audit ' M Does the hotline have a dedicated hotline number,fax committee and board of directors where appropriate? number,website,e-mail address,and regular mail or Are complaints of any kind involving senior manage- post office box address to expedite reports of suspect- ment automatically and directly submitted to the audit ed incidents of misconduct2 committee without filtering by management or other M Does the hotline demonstrate confidentiality,including entity personnel? showing how caller ID,e-mail tracking,and other tech- m Does the entity effectively distribute comprehensive ed- nologies cannot be used to identify the whistleblower? ucational materials and training programs to raise j Has the entity considered use of an independent hot- awareness of the hotline among potential users? Are line operator to enhance the perception of confiden- these materials available in all relevant languages given tiality in addition to any real improvement? the potential user base,and do they take into consid- W, Does the hotline use trained interviewers to handle calls eration cultural differences that may require alternative to the hotline rather than a voice mail system? approaches to achieve the desired goal? w is the hotline available 24 hours a day,365 days a year? w Does the entity support outreach to potential stake- rt Does the hotline have multilingual capability to sup- holders other than employees? port hotline callers with different ethnic backgrounds w Do the entity's internal auditors periodically evaluate or who are calling from different countries? the design and operating effectiveness of the hotline? w Are callers provided with a unique identification num- What were the internal auditors'conclusions regard- ber to enable them to call back later anonymously to ing(a)how the hotline reflects changes in the compa- receive feedback or follow-up questions from investi- ny's operations and in best practices,(b)whether the i gators? hotline is receiving satisfactory support from manage- in Does the entity have a case inanagetnent system to log ment, employees and other participants, and (c) all calls and their follow-up and to facilitate manage- whether protocols established for forwarding infornta- ment of the resolution process,testing by internal au- Lion to the audit committee have been followed? ditors and oversight by the audit committee?For a sam- —Prepared by the AICPA Antifraud Programs and Controls ple tracking report that audit committees can use for Task Force. For more,go to tinyurl.com/2bhfjr5. 24 journal of Accountancy -June 2010 www.journalofaecountency.cor — 16 — I_J_C, _1V The 2010 Report to the Nations on Occupational Fraud and cases-The study examines a wide range of misconduct by em- Abuse takes a comprehensive look at workplace schemes, ployees,managers and executives."Occupational fraud schemes can be as simple as pilferage of company supplies or as complex their perpetrators,how Lhe Crimes were Ultimately de- as sophisticated financial Statement frauds,"the report says. tested and their estimated cost. For the first time,the ACFE expanded the study to include cases from countries Outside the U.S.The findings include feed- The report,released this Month by the Association of Certified back from 106 countries,with more than 40%of the cases hap- Fraud Examiners, is based on data compiled from a study of pening outside the U.5- 1,843 cases of occupational fraud that occurred worldwide be- The charts and graphs featured here,which are global in scope tweenjanuary 2008 and December 2009, All information was unless otherwise indicated,are just a slice of the overall results. provided by the Certified Fraud Examiners who investigated the To read the full report,available June 2,go to acfe.com/rttn. ----------- 29.3% 30% 25% i 3 23.7% 20%— 18.4% 15% 10.6% 10% 8.4% 7.2% 5% 2.4% 0 Less Than $1,000- $10,000- $50,000- $100,000- $500,000- $1 Million $1,000 $9,999 $49,999 $99,999 $499,999 $999,999 and Up Dollar Less The financial Loll occupational fraud takes on businesses is tough to pinpoint.According to the ACFE report,the median loss caused by the occupational fraud cases in the study was$160,000. www.journalofaccountancy.com June 2010 Journal of Accountancy 25 17 - F PZ A U F) ----------- I'M 43% Financial Statement 10.3% Z 2010 2008 Asset misappropriation 21.9% schernes represented the Corruption 26.9% most common form of fraud Q3 in the study by a wide mar- Asset Misap- 998% aw gin,representing roughly p ropriation 0% 901% of cases,though they 887 were the least costly form of 0 20% 40% 60% 80% 100% fraud,according to the study. Percentage of Cases $1,730 Financial Statement $2,000 12 $175 Corruption $375 J 'N' 2010 While Financial statement fraud schemes made up less t= $100 2008 et Misap- than 5%of the frauds in the Ass Study,they were by far the propriation $150 most costly. 0 $500 $1,000 $1,500 $2,000 Median Loss(in thousands$) ----------- ic. P Department %of Cases P:_ #Cases Accounting 222 24.3% i. Operations 189 20.7% Eighty percent of the frauds Executive/Upper Management 12 7 13.9% in the study were perpetrated Sales 120 13.1% by an employee in one of five Customer Service 77 8.4% departments:accounting,Op- Purchasing 39 erations,execubve/upper Warehousing/Inventory 36 3.9-%- management,sales or cus- Finance 28 3.1% tomer service.The most Information Technology 26 2.8% common schemes Committed gy_ by fraudsters in the account- Manufacturing and Production 11 1.2% ing department were check Marketing/Public Relations 11 1.2% tampering and hilling Fraud, Legal 7 0.8% For a discussion on why the Board of Directors - 0,7% accounting department tops I I ------ Human Resource-,; 6 0.7% this list,see page 20. Research and Development 6 0.7'3'0 Internal Audit 2 0.2% ---------- 26 Journal of Accountancy June 2010 www.journalofaccountancycor 18 Tip r 40.2% Management Review ���� � � 15.4% Tips were,by far,the biglest § a" 13.9% Internal Audit source of fraud detection Em- x ployces were the most COM11107 By Accident a r; 8.3% source of those tips.However, ey customers,vendors,corrpeti Account Reconciliation 'c ,y 6.1% Lots and other noncompany —' sources provided at least 341X, Document Exam " 5.2% of fraud tips,winch suggests " that fraud-reporting programs ' External Audit 4.6% i should be publicized to cus- tomers,vendors and other ex- Surveillance/Monitoring 2.6% ternal stakeholders,notjust employees,the AGFE says. Notified by Police °si 1•$°� Confession ;i 1.0% IT Control 0.8% 0 10% 20% 30% 40% 50% i - 19 - Appendix 2 ® Charge and Audit Guidelines for Ad-Hoc Audit Committee Minutes from 8/30/2010 and 9/20/2010 providing Ad-Hoc Committee Guidelines and Charge From: Johnson, Adele Sent: Tuesday, October 05, 2010 9:42:37 AM To: 'Robert Ercolini'; Rhoton, Karin; Melinda Coppa Cc: Rees, Mark Subject: RE: Ad-Hoc Audit Committee Meeting Auto forwarded by a Rule Attached is the Audit Committee Guidelines and below are the minutes from 8/3010 & 9/20/10 j Board of Selectmen Meeting Minutes 8/30/2010 Vote on Audit Committee Report Selectman Nardella requested the Board to vote to approve the Audit Committee's report regarding the Joseph Lydick incident. I William Gordon made a MOTION, seconded by Tracy Watson, to take NO ACTION on "Fraudulent Sale of Town Owned Assets" by Rick Nardella and Audit Committee. Selectmen Gordon, Watson and Smedile expressed concerns about the possible perception that the report would not be considered objective since it was the work of one individual, Selectman Nardella, and not the entire audit committee which was the original charge when the board authorized the audit in November 2009. Selectmen Gordon further stated that the concern was with the process that was used in producing the report and not the content of the report. The Board of Selectmen recognized that Selectman Nardella put a tremendous amount of work into this report and his efforts were appreciated. Selectman Nardella said he hereby resigns as Chairman of the Audit Committee. Note: Richard Nardella recused. Chairman Lanen asked the Board how they would like to proceed. Selectmen discussed several options as to setting up a new audit committee or a sub-committee with a mission statement, a list of a charge and parameters to follow. The Chairman asked for a vote on William Gordon's motion, Motion passed 4-0 William Gordon made a MOTION, to interview potential candidates for an audit sub-committee to complete another investigation and report their findings. There was no second to this motion and William Gordon withdrew his Motion, The discussion was tabled to a future meeting to allow members to research possible solutions. - 20 - Note: Richard Nardella returned Board of Selectmen Meeting September 20, 2010 Audit Committee Report At the August 30, 2010 meeting the Board voted to take no action on accepting the Audit Report and tabled it for discussion as to how to proceed towards bringing this matter to a final resolution. Rosemary Smedile made a MOTION, seconded by William Gordon, to create an ad hoc committee consisting of Melinda Coppa, Robert Ercolini, Karin Rhoton, whose purpose it will be to review and comment on report entitled "Fraudulent Sale of Town Owned Assets, Investigative Control Audit", written by Selectmen Nardella and approved by Audit Committee members. Vote approved 3-1-0. i Daniel Lanen opposed. Adele J Johnson Administrative Secretary Town of North Andover 120 Main Street North Andover, MA 01845 978-688-9510 tmsecretary @town of northan dove r.com I i - 21 - Appendix 3 ® The Initial Report and Town Manager Response FRAUDULENT Sale of Town Owned Assets Investigative Control Audit i Conducted by the North Andover Audit Committee Rick Nardella — Chairman Robert Ercolini Karin Rhoton I. GOALS In order to identify process and control issues that led to the misapplication of funds derived from the sale of Town owned assets, the North Andover Audit Committee was directed by the Board of Selectmen to undertake an investigative audit to determine: 1. What financial controls existed prior to the sale of town owned assets and the receipt of funds in payment thereof. 2 What financial controls were bypassed, failed or were insufficient to prevent fraudulent asset sales and misapplication of funds. 3 What actions or lack thereof allowed the misapplication of funds to remain unnoticed until a North Andover citizen asked a question that prompted the investigation. 4 What controls require immediate update/implementation in order to safeguard the custody and value of Town owned assets? 5 What detailed recommendations, relative to the sale of surplus assets, must be immediately adopted to ensure adequate internal financial control? IL BACKGROUND At the direction of the Town Manager (TM), the North Andover Purchasing Director(PD) was charged with identifying, listing and with the consent of departmental managers, selling excess or obsolete town owned equipment. During the first quarter of 2009 the PD worked with the DPW Director(DPWD) to identify excess DPW assets (No school assets were involved in this effort) that could be sold. The PD choose to utilize, with the TM's permission, an EBAY account as the sale/auction venue. The EBAY account was created by the PD and named the Town of North Andover(Town) as the seller. The account was - 22 - billed by EBAY to the PD and sale costs were reimbursed to Mr. Lydick through a Town paid expense report. The account was accessed solely by the PD. Identified assets were to be listed and sold on EBAY within a stipulated time period for the highest offered price. The PD was the only individual with access to the account and any relevant passwords. It was intended that asset sales were to result in bank checks and personal checks being accepted as the only form of payment. The PD was to monitor the auction and accept only EBAY accepted payments for the winning bids. Cash was not considered an acceptable form of payment. Titles to specific equipment(Where necessary) were to be provided to the purchasers by the PD after the TM signed over the titles. I Upon the close of the EBAY sale and the receipt of checks, the PD failed to report all monies received and to turn in such funds to the Town Accountant for processing. (TA) In several cases assets were sold directly to purchasers through word of mouth and casual discussions. III. PREVIOUS HISTORY At the time of the surplus equipment sale, there was no stipulated policy as to who would monitor and approve the sale or disposal of booked assets or any previously purchased property and equipment above or below the current software encoded capitalization values. The creation of a process was not discussed or implemented. Previous one-off sales of excess equipment were only accomplished through detection and reconciliation by the TA. The TA only found out about a surplus/disposal once a trade-in occurred as part of a new vehicle purchase. Other forms of disposal were not picked up unless specifically addressed in a communication. Previously, upon purchase of an asset, department managers retained vehicle titles at their respective locations. Upon the hiring of a PD, the TM requested that all titles be sent to the PD's office and retained under the supervision of the PD. Although DPW, Community Development and Senior Center assets are processed through the TM/TA office, the NA school department operates as a distinct body and many activities pursuant to the purchase of assets and equipment are not tracked or updated unless a surplus vehicle with a title is involved. The NA school department, up to the hiring of the North Andover PD controlled its own purchase of assets and equipment. Disposal of such equipment is generally handled by the school department's Business Manager or school Principals. With the exception of new purchases, this is largely the situation that exists as of this report. North Andover's current Town policy is to capitalize projects and equipment in accordance with values suggested by the promulgation of GASB 34 in 1999 and as implemented in 2003. Equipment purchases below this level are expensed in the year of purchase as depreciation is not required. Consequently, many purchases were not recorded as a town asset and therefore no continuing record of its existence was ongoing except for its use and recordation at a department level. No physical inventories were performed by the Town since 2005 when a paid consultant validated the existence and use of equipment at a Town wide level. The audit included both booked assets and expensed equipment at various Town locations. This listing is still in use and was the basis of determining what equipment was deemed surplus. Although four years passed without a formal physical inventory, the TA continued to add and delete (Where notified) capitalized assets under GASB 34 guidelines. - 23 - Up to now, department practices as to the recording and control of assets were devised and implemented by various department heads during their term of employment. There was never a prescribed methodology for the continual recordation of assets and equipment. IV. ACTIVITIES SUBSEQUENT TO HIRING OF A NORTH ANDOVER PURCHASING DIRECTOR The hiring of a North Andover Purchasing Director allowed the Town to move toward consolidated procurement activities for all Town municipal departments as well as the school department and greater control over asset and equipment inventories. The appointment of an IT Director also increased vigilance over school and municipal IT equipment. Previous purchases, replacement and retirement of IT equipment occurred without centralized oversight and control. As consolidated purchasing evolved, the TM directed that all titles for Town owned and registered motor vehicles be centralized in the PD's office. V. SALE OF OBSOLETE/SURPLUS EQUIPMENT During December 2009 the TM directed that a listing of municipal assets and equipment (Excluding schools)be reviewed to determine what unused equipment might be sold to derive additional funds. This effort solely involved municipal/DPW equipment. Utilizing the to-date listing created from the 2005 audit, the list was reviewed by Mr. Lydick and DPW staff to determine which items could be considered surplus or obsolete. After identifying equipment to be sold, Mr. Lydick physically attempted to locate identified equipment to validate existence and condition. Several of the items identified as surplus and listed on the asset register or DPW equipment list could not physically be found. It is unclear as to what happened to this equipment. Was it disposed of and never communicated to accounting (Keepers of the asset list) or disposed of but not deleted from the DPW listing maintained at the DPW yard? In March 2009 Mr Lydick created an EBAY account and listed several used vehicles for sale. Mr Lydick received several checks totaling $10,968 in payment thereof and turned these checks over to the Town for deposit. They were booked to Miscellaneous Non Recurring Revenue. During this time the Town maintained a form titled"Request For Authorization To Dispose of Asset". No duly filled out form could be found to validate the sale of the fully depreciated assets or expensed equipment. The use of the form was not required or looked for during the sale of obsolete/surplus equipment. 1. The TA received an emailed list of obsolete/surplus equipment that was not found during Mr. Lydick's physical inspection of the DPW yard. It may have been possible for Mr. Lydick to identify the existence of certain equipment but not communicate its existence to accounting and DPW, therefore creating an opportunity to sell the equipment without the Town expecting compensation. No collected evidence confirms this happened, but the opportunity existed. - 24 - 3. In September 2009, after deleting the pieces of equipment not found, the PD subsequently emailed an adjusted list of equipment to be sold to the TA. 4. Presuming that the PD was acting in good faith and that the non existent equipment was verified by DPW staff, the TA formally removed the equipment not found from the asset register and/or equipment listing. 5. No approval was required or provided by the TM or DPW Director regarding removal of Town owned equipment from the books of the Town. 6. A subsequent investigation of events found that several of the items noted on the September list were actually sold in August, 2009. 7. The PD then proceeded to sell the equipment off the vetted list of September, 2009. Some sales were processed through the EBAY account previously established by Mr Lydick in the name of North Andover, but payments were transmitted directly to him. Several other pieces of equipment were sold through word of mouth or selective negotiation between the PD and an end user. i VI. EVENTS LEADING TO DISCOVERY Investigative queries found that no internal control discussions were held to formalize a selling, and receipt process for recording the sale of Town owned equipment. No evidence was found that any fiscal planning discussions occurred as to how the EBAY account would operate or how monies would flow from the EBAY sale back to the Town of North Andover. It was not understood that although the EBAY account was referencing the Town of North Andover, it was owned by Mr. Lydick. The EBAY account directed monies to be sent direct to Mr. Lydick, not to a North Andover bank account. Mr. Lydick subsequently deposited monies derived from the EBAY sale to his personal bank account. During the summer months the TA asked the PD on several occasions to provide an accounting of monies received so that the funds could be applied and a cash sale/asset disposal could be recorded in the books of the Town. The PD gave the TA an estimate of$2,000 as an amount to book pending a final accounting. This condition remained static from March, 2009 until November, 2009. Between March, 2009 and the November, 2009 fraudulent sale identification date, the TM signed several titles and bills of sales. Subsequent investigation determined that Mr. Lydick also signed at least one bill of sale to help perpetuate the fraudulent sales. Although the TM was signing titles and bills of sale, the TA did not know about additional sales and was not expecting additional receipts of cash. While sales occurred from March, 2009 until late summer, no actual accounting, management oversight or process and control discussions were found to have taken place between the TM, PD, and TA that might have brought the fraudulent activity to light. Although there were many staff meetings during this time period, any questions related to the sale of equipment focused on sale activity, not process and control issues. - 25 - In October, 2009, Mr. Lydick submitted an expense voucher to be reimbursed for approximately $900 of EBAY fees incurred as a result of selling Town equipment. The expense submission was timed to occur on a day when the TA was not in office. After obtaining signature approval from the Director of DPW (As it was that cost center that would absorb the cost)the PD submitted his expense report to the Accounts Payable Clerk noting that he needed it right away, as he had already paid the fees. The expense report was paid without Town Manager (Immediate supervisor) approval. If the Town Manager had signed the expense report it may have prompted questions as to why the fees were so high ($900) and led to a realization that fraudulent activities were occurring. In August, 2009, the PD sold Town owned equipment direct to end users without a bidding process. In one instance, a local contractor made a check out personally to Mr. Lydick, hand carried it to Town Hall and hand delivered it to Mr. Lydick in his office with several Town employees in close proximity. Shortly thereafter, another local contractor heard about the direct sale to end users and asked the Assistant Town Manager how he could participate in the purchase of surplus equipment. He had heard that some of the other contractors were negotiating with the PD to purchase used equipment without a bidding process. After reviewing the situation the Assistant Town Manager and the Town Manager referred the issue to the North Andover Police Department for investigation. Once confronted, Mr.Lydick quickly admitted to his fraudulent activity and partially reimbursed the Town for monies that were deposited directly to his personal account. The Town quickly moved to attach Mr. Lydick's retirement account and to establish a case against Mr. Lydick. Once Mr. Lydick's case is adjudicated the Town should be reimbursed all monies fraudulently derived by Mr. Lydick. VII. CONCLUSIONS 1. The Town Manager entered into a plan to identify and sell Town owned equipment without a formal policy to ensure control and recording of such transactions and without clear directions to staff as to process and information flow. - No documented policy or procedure existed at the time the decision was made to sell equipment. - No documented policy or procedure was implemented upon the decision to sell equipment. - The Town Manager assumed that sufficient controls existed to affect the recording of sales and the receipt of cash. - The Town Manager's communication with staff was insufficient to determine status and efficacy of the surplus equipment sale effort. - The Town Manager signed Titles and Bills of Sales without performing due diligence as to assuring receipt of monies prior to legal transfer. 2. Inadequate Segregation of Duty controls existed to ensure that those holding and maintaining equipment Titles and the ability to prepare Bills of Sale, were also not able to accept payment and affect the sale of Town owned equipment. Those validating the existence of equipment should not have been responsible for the sale of the equipment. - 26 - 3. The Town's asset recordation policy is insufficient to allow tracking of assets. While vehicles and capital projects are capitalized based on a per unit, specific value, other equipment below current minimum asset levels are aggregated at total cost or not recorded as an asset. 4. Previous and current Department Managers were allowed to establish departmental policies and procedures without sufficient input from municipal administration. Departmental process often varies from Manager to Manager. 5. The existing Expense Reimbursement policy is insufficient to provide adequate oversight and control. 6. The audit revealed a town wide lack of policy regarding purchasing, recordation of assets and disposal of such. School assets are controlled by the Superintendent's office through school Principals and the Business Manager. There is no School Committee/Municipal approved policy related to the care and custody of Town owned assets. Very few school assets are disposed of through sale. It is important to monitor and maintain the status and recording of school equipment through their useful life and disposal. 7. There was a lack of adherence to previous practice and an undocumented process for deleting assets from the books of the Town. VIII. RECOMMENDATIONS i I. The Town must immediately document a procedure that outlines each step in the process of obtaining and retiring Town owned assets. The procedure should be accompanied by a "What can go wrong" statement to ensure that required controls are in place to ensure care, custody and retirement of Town owned assets and equipment. The procedure should cover the acquisition and disposal of all Town owned equipment including both municipal and school owned equipment. The department head must sign a request and it should be approved by the Town Manager or the School Superintendent. 2. Municipal procedures must ensure segregation of duties as to the retention of Titles and preparation of bills of sale. Those that retain responsibility for Titles and Bills of Sale should not sell and also collect payment for Town owned equipment. There must always be a segregation of duties with respect to those identifying equipment for sale and those selling such equipment. Lists must be confirmed and approved by department heads prior to the submission to the Town Manager/School Superintendent for final approval. 3. No sale of Town owned equipment shall result in a cash transaction. A policy of only accepting certified checks or waiting until a deposited check clears should be implemented prior to the physical transfer of the equipment to a new owner. 4. Prior to deleting an asset from the books of the Town, the applicable department head and the Town Manager/School Superintendent must sign the "Request to Dispose of Asset" form and submit it to the Town Accountant for action. This form must be redesigned to incorporate equipment not listed as an asset. - 27 - INTERVIEWS HELD WITH THE FOLLOWING: Mark Rees — Town Manager Lynn Savage — Town Accountant Jennifer Yarid — Treasurer Bruce Thibdeau — Director of Public Works James Mealey — Business Manager — Schools North Andover Police Department - 28 - Appendix 4 ® Police Report North Andover Police Department Incident Number:2009000023735 566 Main Street File No: N/A North Andover,Ma.01845.4099 Dispatch Incident Number: N/A (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronin Incident Information Occurred I Day of Date Time Occurred Day of Date Time Reported Date Time On/From Week To Week On Tues 11/10/2 00 9 S:OO:OOPM TUes 11/10/2009 5:0O:OOPM — 1 11/10/2009 5:00:OOPM Reported As Incident Type-Primary Arresting Officer larceny Larceny Detective Sean Daley Incident Address Reporting Officer 120 Main Street,North Andover,MA 01845 Detective Sean Daley Sector Stal.Area Sub Stat.Area Census Tract Landmark Town Hell Business Name Incident Types-Other N/A Associated Persons Summary Type Name(Last,First,MI) Date of Birth I Sex Home Phone# Cell Phone# Work Phone# Offender LYDICK,JOSEPH 4/22/1966.. ..M.. .(603)432-5875 NIA N/A ......................°• .................................... ............ .. ............. ...._____._.... ............... Address. 21 LINLEW DRIVE,Apt#:20,DERRY,NH 03038 Involved Breen,Peter 1/19/1954 U (978)667-7774 N/A N/A ........................... ................................... .............. ..°_. ...°_........ ............... ...... ......... Address. 770 Boxford Street,North Andover,MA 01845 Reporter SANTILLI,RAYMOND N/A M N/A N/A (978)688-9500 ..............................................................I.............. ...... .............. ............... ............... Address. 120 Mein Street,North Andover,MAO 1845 Witness Lawlor,Chad Richard 5/7/1977 M Uniisted:See (978)265-4752 (978)683-3168 .................................................... ....... ...... ......Q3t?.._.. ............... ............... Address. 51 Adams Avenue,North Andover,MA 01845 Witness MUNROE,TYLER D 2/19!1960 M (978)687-1622 (978)875-3130 N/A '.. ................................................................ ........°____ •°._. ...........___ .........._...- ............... Address. 100 Foster Street,North Andover,MA 01845 Witness LAWLOR,COREY T 1/26/1981 M (978)265-5539 NIA (978)687-8687 ........................... ................................... ............^ '---.. .....°_...._. .....°'_....._.......................... Address. 290 Stevens Street,North Andover,MA 01845 Witness Engholm,Roger N/A M N/A N!A (507)280-0453 ........................... ^..............___.........._...._ ••.....•••••... .___.. .............. .............° --............. Address. 2145 Marrion Rd SE,Rochester,MN 55904 Witness HARTMAN.DONNTODDT 7 IA 79-5973 ...........................'_ ___......___................_...... ....... . Address. 71 FERRY ROAD,SALISBURY,MA 01952 Witness HesanowiczI Christine 9/26/1958 F NIA N/A NIA ...._°••.............°° _._... .. ._.... ...........°_ ....._°_...... ......._......_ Address. 60 Spofford St,Worcester,MA 01607 Witness Niquette,Daniel 8/30/1985 M NIA NIA N/A ....__°_....•••.....___•• °__...__.......................... .............. ...... ........... ...... Address. 60 Spofford Rd,Worcester,MA 01607 Witness Usuman.Elvis N!A N/A ........................... ...............•___................ ........°_-.. ._.... ...... .......°...... ....... ...... Address. 409 Pond St,Apt#:8,Braintree,MA 02184 Witness Antoniadias,Stephen N/A F (603)965-5411 N/A N/A ..................... ..................... .............. ...... ..........-___ .....___......_ ...... ...... Address. 156 Pine Hill Rd,Weare,NH 03281 Witness DUROSS,JOSEPH M 9-4983 ........................... ....................... ....... '.. Address. 11551 MINNIEOLLA DRIVE,NEW PORT RICHEY,FL Associated Businesses Summary Type Name Pr mary Phone# Secondary Phone# Witness Asaman Incorporated •••• ••• _...°••�••••............................................ .................... .................... Address:. 409 Pond St, t#:8,Braintree,MA 02184 Incident Number:2009000023735 Page 1 of 8 PlFormSingle 03/12/10 '..... -29 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: N/A North Andover,Ma.01845.4099 Dispatch Incident Number: N/A (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronln Involved Officers Officer Title Officer Name Officer Type Division Lieutenant Paul J Gallagher Shift Commander Criminal Investigations Division Detective Daniel G Cronin Assisting Officer Criminal Investigations Division Detective Robert J Barter Reporting Officer Criminal Investigations Division Detective Thomas E Donovan Assisting Officer Criminal Investigations Division Detective Sean Daley Reporting Officer Criminal Investigations Division IBRft1CR Offenses ', Offense Number IBR Type Chapter Section Statute ID/IBR Type Description '. No Incident Offenses Recorded for Incident#:2009000023735 Arrest Offenses Seq# Chapter Section Name(Lasl,First,MI) Description of Offense 1 266 30 LYDICK,JOSEPH Larceny Over$250 by Single Scheme(314a) Complaint Charges Seq# Chapter Section Name(Last,First,MI) Description of Offense 1 266 30 LYDICK,JOSEPH Larceny Over$250 2 266 30 LYDICK,JOSEPH Larceny Over$250 3 266 30 LYDICK,JOSEPH Larceny Over$250 4 266 51 LYDICK,JOSEPH Municipal/County Offcr,Embezzlement by 5 266 51 LYDICK,JOSEPH Municipal/CountyOffcr,Embezzlement by 6 1 266 1 51 LYDICK,JOSEPH Municipal/County Offcr.Embezzlement by Vehicle Info Vehicle No. Vehicle Make Vehicle Model I Vehicle Year VIN Primary Color Secondary Color Plate No. No Vehicle Info Recorded for Incident#:2009000023735 '.. Property No Property Info reported for Incident#:2009000023735 Citations Citation No Code Date Status Statute Description No Citations reported for Incident#:2009000023735 I �I Incident Number:2009000023735 Page 2 of 8 PlFormSingle 03/12/10 ', - 30 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: N/A North Andover, Ma.01845-4099 Dispatch Incident Number: N/A (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronln Narratives for Incident Number 2009000023735? Yes Other Narratives not authorized for print? None i Narratives this user authorized to print: Narrative by: Defective Sean Daley Division:Criminal Investigations Division Date 8 Time Narrative Description Entered by Status Reviewed by Last Edit Date 11/12/2009 19:27 Detective Sean Daley Open 0 3105/2 01 0 On Tuesday,November 10,2009,while assigned to the Criminal Investigation Division,I was assigned an investigation based on information provided by Assistant Town Manager Raymond Santilli regarding the auctioning of town equipment to the public. Raymond Santilli stated that North Andover resident Peter Breen contacted him and stated that the town auction was not properly advertised to the residents. Santilli looked into the matter and determined that the auction was in fact advertised properly within the regulations stipulated by the Inspector Generals Office. Santilli spoke with Breen on Tuesday morning and notified him that the auction was advertised properly. Breen asked if the tawn purchaser,Joseph Lydick,received any compensation for conducting the auction. Santilli informed him that he received no compensation because he is a town employee and conducting the auction was part of the town purchaser's job description. Breen then told him that he had knowledge that a few of the buyers at the auction wrote checks directly to Lydick and not the Town of North Andover. Detective Donovan and I spoke with Breen on Wednesday,November 11,2009 at around 1000 hours. Breen relayed the following information to us: He stated that he was aware of three or four people that purchased equipment at the auction and paid for items with checks made out to Lydick. He stated that Chad Lawlor,owner of CRL Landscaping,purchased snow plows and a truck from the auction. I contacted Chad Lawlor via telephone and asked him if he purchased items at the auction. He said that he purchased one dumpster, seven plows and a trash truck for$2700.00. He stated that he paid Lydick with a bank check in the name of Joseph Lydick on Friday, October 30,2009. He stated that he emalled Lydick on Wednesday,October 28,2009 regarding the items that he wanted to purchase. Lydick instructed Lawlor to make the check payable to Joseph Lydick when he met with him at the DPW Town Yard. Lawlors brother, Corey Lawlor brought a bank check to Lydick's office at town hall. Lawlor was able to give me a copy of the bank check from Merrimack Valley Federal Credit Union. The check(no.1000119061)was made out to Joseph Lydick or Corey Lawlor for the amount of$2700.00. The check was deposited at Bank of America. I asked Lawlor if he was aware of anyone else that purchased items and made payments directly to Lydick,he stated that Tyler Monroe,owner of Tyler Monroe Landscaping,purchased two trucks and a few snow plows. (See Detective Barter's supplemental report) On Thursday,November 12,2009,Detective Barter and I spoke with Ray Santilli in Town Hall regarding the investigation. I asked him if there was any reason why anyone that purchased items at the auction would write out a check payable to Joseph Lydick and he stated,"absolutely not". I asked him if the Town of North Andover had an account with Bank of America and he staled"no". He further stated that any money from the town auction would be submitted to the treasurers office and a Schedule of Departmental Payments sheet would be filled out and submitted. This is the standard operating procedure for all payments made to the town. Santilli called the DPW to try to obtain a list of all items purchased and for what amount and he was informed that Lydick was the only employee with this information. On Thursday,November 12,2009 at approximately 1506 hours,Detective Cronin and I met with Joseph Lydick at North Andover Town Hall. Lydick was informed that we wanted to record our interview with him and he agreed and signed the Electronic Recording Form. Lydick was then advised of his Miranda Rights and he signed the Miranda Rights Form staling that he fully understood his rights and agreed to speak with us. Lydick was asked about the protocol for auctions in the Town of North Andover. Lydick told us that he was obligated to advertise all items that were going to be auctioned and he had all items up for bid on EBAY. Lydick stated that if items did not receive a minimum bid and failed to sell then he had the authority to take bids at a later date for a lover price. He stated that all checks or money orders were to be made out to the Town of North Andover and at no time has any check or money order been made out to anyone else. He stated that all sales were documented and a schedule of departmental payments sheet would be filled out and submitted to the town. At this time I handed him a copy of a check made out to Lydick from Lawlor. I asked him if the copy of the check looked familiar and he stated,'yes,I don't know why it was made out to me". He then staled that the check was deposited in his personal account and put into a money order to be paid to the Town of North Andover. He then stated that the money was still in his account because he was too busy to put the money into North Andover's account. He was asked if this was the only check that was made out directly to him,he stated,'yes". He was then informed that there was one other check that we had knowledge about. The check was made out to Lydick from Tyler Monroe for$5500.00. During the entire interview Lydick insisted that he planned on moving the money from his personal accounts into the Town of North Andover accounts. Lydick slated that he had a checking and savings account of Bank of America. To summarize the interview Lydick did admit to instructing both Lawlor and Monroe to write checks payable directly Lydick and he did deposit both in his personal Bank of America account. (See Audio Recording) Al this time Lydick was placed on administrative leave by Santilli and he was relieved of his office keys,town cell phone and computer access. Incident Number:2009000023735 Page 3 of 9 PlFormSingle 03/12110 - 31 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: NIA North Andover, Ma.01845-4099 Dispatch Incident Number: NIA (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronin Narrative by: Detective Sean Daley Division:Criminal Investigations Division(continued) Date&Time Narrative Descriolion Entered by Status Reviewed by Last Edit Date 11/12/2009 19:27 Detective Sean Daley Open 03/05!2010 On Friday,November 13,2009 at approximately 1100 hours Lydick came to the police station to speak with me. He was informed of his Miranda Rights and signed the rights form stating that he understood. Lydick also agreed to have the interview audio recorded and signed the form. Lydick handed me a bank check(0202314)from Bank of America for$8200.00 from Lydick's account made out to the Town of North Andover. The check(0202314)was logged into evidence. Lydick stated that he is having issues with depression and he wanted to be caught taking the checks so that he would be forced to get some help. Lydick stated that if he did not have children he would have committed suicide months ago. Detective Barter and I followed Lydick to Pentucket Medical Center and he went inside to speak with a doctor regarding his depression issues. (See Audio Recording) On Friday,November 13,2009 at approximately 1200 hours,Detective Barter and I went to the Lawrence Police Community Policing Office to retrieve emails and receipts from Lawrence Police Officer and owner of CRL Landscaping Chad Lawlor. Lawlor was not in the office when we arrived. Lawior's Lieutenant,Sean Conway,informed us that he was Lawlor's supervisor and he would be present during our interview. Lawlor provided us with all his paperwork and he slated that his brother,Corer Lawlor,brought a bank check to Lydick at Town Hell on Friday,October 30,2009. On Monday,November 16,2009,Detective Barter along with the Derry,NH police department were able to locate Lydick at 42 Amherst Drive in Derry,NH. Lydick agreed to come to the North Andover Police Station to speak with us. Upon arrival Lydick agreed to have our interview audio recorded and he signed the form. Lydick was advised of his Miranda Rights and signed the form stating that he understood his rights and he agreed to speak with us. The following is a synopsis of the interview and not a detailed interview report: Lydick was shown all of the vehicles that were advertised on EBAY by him. He indicted that all of the money received for vehicles posted after March of 2009 went directly to him. Some of the moneywas paid in cash and some came in checks written directly to Lydick. Lydick admitted to seven additional transactions through EBAY in which he received approximately$17,875.00. There were two transactions in which the checks are unaccounted for and Lydick can not explain their whereabouts. Lydick was cooperative and offered to log in to his bank account at Bank of America to show that he did not cash or deposit the two checks in question. Lydick signed in to his account and agreed to have all his records printed. Lydick was asked what he did with the money that he took and he stated that he purchased an engagement ring for his girlfriend. At this time Lydick was placed under arrest on the warrant for three counts of larceny over$250.00 and three counts of embezzlement by a municipal officer and additionally charged with larceny by single scheme. He was advised of all rights and booked by Detective Barter. Rev lewkig 01il(,,v, ------------------------.--------- ..........----------.........-------------------.-..-.—.--- ............ ----------- -------------.. Narrative by. Detective Robert Barter Division:Criminal Investigations Division Date&Time Narrative Description Entered by Status Reviewed by Last Edit Date 11/12/2009 19:30 Detective Robed Barter Open 03/0512010 11/12/09 I Detective Robert Barter report the following, On the above date while assigned to the Criminal Investigations Division,acting on information that Det.Daley had received,myself and Del.Donovan at approximately 1445 Hrs went to 100 Foster St to speak with Tyler Munroe,owner of Tyler Munroe Landscaping, regarding some items that he had recently purchased from the town.(See Det.Daley report). We spoke with Mr Munroe in his shop located behind his residence.I asked Mr Munroe if he had recently purchased any equipment from the town and he stated that he had.He stated he found out through Ebay that the town was auctioning off old DPW equipment.Mr Munroe staled that he went online and found items that he was interested in purchasing,two(2)mock trucks,a side walk plow,and three(3)snow plows.Mr Munroe stated that the Ebay ad said to contact Joe Lydick,Purchasing Agent for the Town of North Andover, regarding the purchase of the items.Mr Munroe stated that he contacted Mr Lydick and he told him to email him with his bid on the items.Mr Munroe stated that he had also spoken to Mr Lydick at the DPW yard regarding the equipment.Mr Munroe stated that he emailed the bid to Mr Lydick's town email account(Jlydick@townofnorlhandover.com) They agreed on a price of$5,500.00 for all of the items.Mr Lydick told Mr Munroe to make the check out to him,Joe Lydick,and not the Town of North Andover,and stated that there were different places the money was to be distributed and it made it easier for him to move money around between different accounts. Incident Number:2009000023735 Page 4 of B PlFormSingle 03/12/10 - 32 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: NIA North Andover, Ma.018454099 Dispatch Incident Number: N/A (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronin Narrative by: Detective Robert Barter Division:Criminal Investigations Division(continued) Date&Time Narrative Description Entered by Status Reviewed by Last Edit Date 11/12/2009 1930 Detective Robert Barter Open 0 310 5/2 01 0 Mr Munroe stated that on 112/09 he got a Bank Check in the amount of$5,500.00 made out to Joe Lydick,drawn off of Northmark Bank in N-Andover.Mr Munroe stated that he took the check to Mr Lydick in his office,located on the second floor of the North Andover Town Hall.Mr Munroe presented Mr Lydick the check and received a title and two Bills of Sale. I asked Mr Munroe if he had found it strange that Mr Lydick wanted the checks made out to him.He slated that he did but he had been in business for a long time and had seen all sorts of strange things over the years.He stated that since Mr Lydick had asked him to come to his town office to make payment,and then handed him the title and Bills of Sale,he figured that everything was ligitimate.Mr Munroe stated that he believed he was"just getting a good deal"on the items.Mr Munroe went on to ask if something was wrong with the purchase,and if he was going to have to give all the equipment back.Mr Munroe stated to us that all the equipmet he had purchased was at his other property on Osgood St.I told Mr Munroe that we needed him to provived us with copies of any and all paperwork he had regarding the purchease.We also told him that we needed a copy of the Bank Check and asked him to gel it to us before the bank closed today.Mr Munroe seemed agrivated at this request and staled he would get it to me by Monday.We told him we weren't waiting until Monday,that we wanted it today.Mr Munroe reluctantly agreed and stated he would go and get it now. Al that time we both cleared. Det.Donovan and I went to Mr Munroe Osgood St property and located the equipment in question(2 Mack Trucks,2 snow plows,and a sidewalk plow).We photographed all the equipment(VIN numbers as well).All photos were placed in the case file.While we were photographing the equipment,Tyler Munroe arrived at the property.He staled to me that he had just dropped off all the paperwork we had asked for at the station with Lt.Gallagher.He stated that he provided a copy of the check,2 Bills of Sale and one title.He stated that he had not received a title for the second truck or a Bill of Sale.He slated that Mr Lydick had told him he would get it to him at a later date but didn't specify when. Mr Munroe came to the station around 1600 and provided me copies of all pertaining paperwork.One(1)Bill of Sale for a 1987 Mack, Model 600,VIN#1 M2N166YXHA090309,and two(2)Bills of Sale.One Bill of Sale was for all three(3)plows and the other was for a 1987 Mack Truck. Both Bills of Sale were mostly blank.The only information provided on the documents are as follows: Seller information:Town of North Andover Place of Sale:North Andover Vehicle Info:1987 Mack Model R600 VIN:1 M2N 166YXHAO90309 The Bills of Sale was signed, Mark Reese,Town Manager Neither Bills of Sale were dated,had any of the buyers Information provided, or the amount paid. All copies have been added to the case file. Investigation to continue. Srgn�ri:re-f"rp uih>q Otrwer Sfgttalul -PE2Oet my OiPc el ..............................................................._----._....--_---..---------..-----.....-------------_.---------------_. Narrative by: Detective Robert Barter Division:Criminal Investigations Division Date&Time Narrative Description Entered by Status Reviewed by Last Edit Date 11113/2009 17:00 Detective Robert Barter Open 03/05/2010 11/13/09 1 Detective Robert Barter report the following, On the above date while assigned as a Detective with the Criminal Investigation Division I was able to locale a 1997 Crown Victoria (VIN 2FAFP71 W9VX189380),a vehicle in question in this case.This particular vehicle is currently registered to a Christine Incident Number:2009000023735 Page 5 of 8 PlFonnSingle 03/12/10 '.. - 33 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: NIA North Andover, Ma.01845-4099 Dispatch Incident Number: NIA (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronin Narrative by: Detective Robert Barter Division:Criminal Investigations Division(continued) Date 8 Time Narrative Description Entered by Status Reviewed by Last Edit Dale 11/13/2009 17:00 Detective Robert Barter Open 03/052010 Hasanowicz,o1 Worcester,Ma. I contacted Ms Hasanowicz to find out how she purchased the vehicle.Ms Hasanowicz slated that she had bid on a vehicle through Ebay and had won the bid.She slated that the car that she has currently registered was not the car she had originally won the bid on. Ms Hasanowicz stated that she won the bid on a 1998 Crown Victoria(VIN 2FAFP71 W3Wx126662),another vehicle in question in this case.Ms Hasanowicz stated that her son,Daniel Niquette,had gone to North Andover Town Hall and paid Joseph Lydick$949.00 in cash for the 1998 Vehicle.Mr Niquette received the title and a bill sale.Mr Niquette had the vehicle registered the following day and came back to North Andover and met Mr Lydick at the town DPW to pick up the car.Ms Hasanowicz staled that the car would not run and Mr Niquette could not lake the car.Mr Lydick told Mr Niquette that he felt bad and that he would give him another vehicle instead. Ms Hasanowicz stated that Mr Lydick gave back$300.00 cash and gave Mr Niquette a title to a different car.Mr Niquette had that car registered the next day,a 1997 Crown Victoria,the vehicle they currently have,(now having to pay sales tax on the second vehicle as well)and came back to pick up the second vehicle.Mr Niquette met Mr Lydick at the lawn DPW and took possession of the vehicle.Ms Hasanowicz stated that they currently have the title to the first vehicle that they never took possession of as well as the one they currently drive. In checking the financial records of the Town of North Andover there is no records of the town receiving this$349.00 cash payment for either of the vehicles. .'wn� -�<v wt-("l O,firer Si f..v4•v�lrir ht<„r.._.w.....,�_.�.... ......._....._.....__....................................._...._._...... .........._---------.-----------------.... ........------ ... Narrative by. Detective Robert Barter Division:Criminal Investigations Division Date&Time Narrative Description Entered by Status Reviewed by Last Edit Date 11/13 12009 17:30 Detective Robert Barter Open 03/052010 11/13/09 I Detective Robert Barter report the following, On the above date while assigned as a Detective with the Criminal Investigations Division I was able to locate a 2005 Crown Victoria (VIN 2FAFP71 W85X100637),a vehicle in question in this case.The vehicle is currently registered to Asaman Incorporated, 409 Pond St,Suite 8,Braintree,Ma. I contacted Asaman Inc.and spoke to Elvis Usuman who had been involved in purchasing this vehicle.Mr Usuman stated to me that he had won the bid on this vehicle through the Ebay auction and had paid for the vehicle via Bank Check for$3900.00 made payable to the Town of North Andover. In checking the financial records of the Town of North Andover we were able to locate a deposited for$3900.00 with the accompanying paperwork in to the towns account. Copies of the paperwork have been placed in the case file. 3lpr..rr � -R.(ri unrr k7tTlcc r .iy.r:6m f�t ir:,vt ry Ut frcr ........ ............-------I-----------------------------------------.....-- --------------------......... ............... Narrative to Detective Robert Barter Division:Criminal Investigations Division '.. Date&Time Narrative Description Entered by Status Reviewed by Last Edit Date 11/16/2009 14:23 Detective Robert Barter Open 03/052010 '.. 11/16/2009 1 Detective Robert J.Barter report the following. On 11/16/09 while assigned as a Detective with the Criminal Investigation Division I spoke to Roger Engholm,the Owner of Rogers Incident Number:2009000023735 Page 6 of 8 PIFonnSingle 03/12/10 - 34 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: NIA North Andover,Ma.01845.4099 Dispatch Incident Number: NIA (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronin Narrative by; Detective Robert Barter Division:Criminal Investigations Division(continued) Date&Time Narrative Description Entered by Status Reviewed by Last Edit Dale '.. 11/16/2009 14:23 Detective Robert Barter Open 03/052010 Tree Service of Rochester,Mn.I obtained Mr Engholm's information through Ebay,where Mr Enghdm had won a bid on a truck the Town of North Andover was selling.(2004 International 4300 Series,VIN 1 HTMMAALX4H671402) Mr Engholm staled to me that he had won the Ebay bid on the truck and contacted Mr Lydick directly.Mr Enghdm stated that he was instructed to make payment for the vehicle to Mr Joseph Lydick directly in the amount of$12,600.00 which he did via a Cashiers Check.(A copy of the check has been attached to the case file)He mailed the check to Mr Lydick and in turn received the appropriate paperwork he needed to register the truck. l Mr Enghdm sent an employee out here to pick up the vehicle and drive it back to Minnisotla. I 1 In checking the financial records of the Town of North Andover there is no records of the tarn receiving this$12,600.00 as payment for the truck. ..e._..�.,.... ._.._—.'U ,, �. P,PJf L_,(r ....................................................... ............................................ ........... .............. ......... ',.. Narrative by: Detective Sean Daley Division:Criminal Investigations Division Date&Time Narrative Descdotion Entered by Status Reviewed by Last Edit Date 11/17/2009 12:09 Detective Sean Daley Open 03/052010 On Monday,November 16,2009 at approximately 1700 hours,while assinged to the Criminal Ivestigation Division,I spoke with Donn Todd Hartman in regards to a vehicle he purchased at the Tarn of North Andover auction. Mr.Hartmann stated that he purchased a white 1997 Ford Crown Victoria for$500.00. He staled that he paid cash to a male for the vehicle,he did not recall his name. He did recall that the male drove a Toyota Sequoia that was grayish in colorwith a New Hampshire registration. Lydick drives the same vehicle described by Hartmann. Sin r„+t,.--r.,l�,rurq 0l rctr Srgnatur" r9sut�4in.) ..�r ....................._--..-.-------------------- -------------------------------------------------------------------- ..-........ --.-... Narrative by:Detective Robert Barter Division:Criminal Investigations Division Date&Time Narrative Descdotion Entered by Status Reviewed by Last Edit Date 11/17/2009 14:30 Detective Robert Barter Open 11/1812009 I Detective Robert J.Barter report the following, On the above dale while assigned as a Detective with the Criminal Investigation Division I located information pertaining to a 1997 Crown Victoria(VIN 2FALP71W3VX229839),a vehicle in question in this case.The vehicle is not currently registered but I was able to contact the winning bidder from the Ebay auction,Stephen Antoniadias. Mr Antoniadias stated to me that he had won the bid and then had contacted Joseph Lydick on or about August 18th 2009 about arranging for payment and pick up. Mr Antoniadies stated to me that Mr Lydick had told him that he needed to make payment of the $849.95 in cash to him.Mr Antoniadies staled to me that he was not comfortable in paying him cash and felt like something wasn't right. '. Mr Antoniadias stated that he came to North Andover approximately 2 days later and meet with Mr Lydick at the town DPW yard.He stated that he asked Mr Lydick if he could check out the vehicle and start it up.He stated that Mr Lydick wouldn't let him do anything with the vehicle until he paid him.MrAntoniedias slated that he again told Mr Lydick that he wasn't comfortable paying him cash and that he would rather write a check.He stated that Mr Lydick would not accept anything but cash and began to give him a hard time, stating that if he backed out of the sale it was against the law and he would get it trouble for it. Mr Antoniadias stated that he did not like the way that Mr Lydick was treating him and he believed that something was not above board with the transaction,with the way Mr Lydick was acting and the fact he would only accept cash.Mr Antoniadias staled that he told Mr Lydick that he was no longer interested and that he could"stick the car up his ass"Mr Antoniadies stated that he ended up leaving without the vehicle. Incident Number:2009000023735 Page 7 of 8 PIFormSingle 03112110 '..... - 35 - North Andover Police Department Incident Number:2009000023735 566 Main Street File No: N/A North Andover, Ma.01845.4099 Dispatch Incident Number: NIA (978)683-3168 Print Date: October 27,2010 Incident Report Printed By: dcronin oitirr�;r�r�, l� r,r7 T7(r 0!0,o, iynaa, -!evleis),iq O,pcer ............----------------.....---------............----------------_................ ----------- _.-——---------...........----..... Narrative by:Detective Daniel Cronin Division:Criminal Investigations Division Date&Time Narrative Description Entered by Status Reviewed by Last Edit Date 11/2412009 09:23 Supplement Detective Daniel Cronin Open Lieutenant Paul 11/2412009 Gallagher 1. On Monday 11/16/09,Detective Cronin received a Sprint Blackberry phone from Ray SANTILLI.SANTILLI related that the cellular phone had been issued to Joseph LYDICK by the Town of North Andover.The phone was owned by the town and was not the personal property of LYDICK.Additionally the phone was used in several of the advertisements to auction the surplus equipment. 2. Detective Cronin discovered a voice message left on Thursday 11/12109 at approximately 7:06 p.m.The message was from Tyler MUNROE,This message was left after Detective Barter and Detective Donovan interviewed MUNROE about his purchase of Town surplus from LYDICK. 3. The following is the message;Hey Joe its ah Tyler Munroe aha,courtesy call to you,ah call me in the morning if you can,978-815 -3130,but a couple of detectives came out here today asking all kinds of questions about what I bought from the town,and um how I paid you, why I paid you,in your name,so anyway,heads up,fyi to you, and um,give me a call in the morning and I will give you details if you want,um,you know.I think somebody who I know is making trouble for all of us,because he didn't get a chance to bid on it,or didn't get it or something but an anyway just a courtesy call to you,give me a call when you can,thanks bye. 4. A recording of the message was placed into evidence. Investigation to continue, Detective Daniel Cronin .t /r]Rrfl.rf L` ftiG 4�J+!l'.11}tl 7,(it Cl .......................................................................................................................................... Narrative by:Detective Sean Daley Division:Criminal Investigations Division '... Dale&Time Narrative Description Entered by Status Reviewed by Last Edit Date 1125/2009 09:02 Detective Sean Daley Open 11/252009 On Monday,November 23,2009,while assigned to the Criminal Investigation Division,I was able to identify the buyer from a bill of sale from the Town of North Andover for a 2006 Ford Crown Victoria The buyer was identified as Joseph Duress of New Pon Richey,Florida. I spoke with Mr.Duress and he staled that he paid$4503.00 cash for a 2006 Ford Crown Victoria. Duress stated that he came to North Andover and met Joe Lydick in his office and handed him the cash payment. Duress received a bill of sale and title for the vehicle. Duross taxed me a copy of the vehicle transfer of registration papers from the stale of Florida. Lydick was asked about this payment during an interview and he staled that the payment was made with a check and he assumed that the check was still in a drawer in his office. Sx7na u.<t-14'hN UNV O!"i:er Sigmw-..,-Rvviewiag OfUf-, - ---._...........................................................................---........_....---..............._.............._. Incident Notes: Create User1D: Date&Time No Incident Notes Listed Incident Number:2009000023735 page 8 of 8 PIFormSingle 03/12/10 '.. - 36 - Appendix 5 —Signed Title By Mr. Lydick 0 THE COMMONWEALTH OF .CHUlSETTS�// }���'� TITLE NUM5ER VEHICLE NUMBER _-DAT5 OF_ISSUL ':I' VEHICLE IDENTIFICATION 97 AV397390 1M2N166YXHA090309 01/12/2001 D L'All D BODY MODEL Z C' L jF A 6 MYRS,MODEL YEAR MAKE MODEL NAME MODEL No BODY ST NE'I'LIOED 1 8 7 MACK 0 987 MACK 600 R600 TRACT USED rj v T.TL' S 1A A E ATE T_ E' P" "7- REV TITL YL -PUr-ICHASEDATE F FADING PREV T!TLE 140 PREV TITL TATE 1 9/19 8 80 06 02 2 12/29/191806) 80,000 ACTUAL L M TO, 1:r,7LL-likIll 3� CT ACTUAL MILEAGE If"ME MI " I'll JLING ADDRESS ONLY NORTH ANDOVER TOWN OF 384 OSGOOD ST TITLE TYPE N ANDOVER, MA 01845-2909 BRAND BRAND BRAND BRAND TITLE MESSAGE(S): OWNER(S)NAME AND,,DDRIzSS: NORTH ANDOVER TOWN OF 384 OSGOOD ST N ANDOVER, MA 01845-2909 1:1..Sl LAFNHOLDER: SECOND LIENHOLDER' RELEASE OF FIRST LIEN: RELEASE OF SECOND LIEN: THE FjRS1 LIENIK)LDERS EST IN THE VEHICLE THE SECOND(IF.NH(XDFR'S INTEREST iN THE VEHCLF� DESCRIBED IN THIS CERTIFICATE iS 8EH,_6y RELEASED DESCRIBED IN THIS CERTIFICATE IS HEHEHY RELEASED N%ME: NAME iy AU HUR,"CD SIGNATURC- AUI'HOHt?rL)SIGN�TURF X X fly L ATE RELEASED DATE RELEASE NATE RELEASE THE REGISTRAR OF MOTOR VEHICLES HEREBY CERTIFIES THAT AN APPLICATION FOR A CERTIFICATE OF TITLE FOR THE MOTOR VEHICLE DESCRIBED HEREIN HAS BEEN DULY FILED,PURSUANT TO THE PROVISIONS Of THE LAWS OF THE COMMONWEALTH OF MASS CHUSETT9.BASED ON THE STATEMENTS OF THE APPLICANT AND THE RECORD,';ON FILE k71TH THIS AGENCY.THE APPLICANT NAMED IS THE OWNER OF SAID VEHICLE, THE REGISTRAR OF MOTOR VEHICLES FURTHER CERTIFIES THAT THE VEHICLE IS SUBJECT TO ANY SECURITY INTEREST)SHOWN HEREIN. Daniel A.Grabauskas S' ` �( `�) Registrar of Motor Vehicles CONTROL No. E 26 35731 NOT THE TITI.E NUMBER IN t- 37 - } ( F,deral and Massachusetts laws,e.;ui.e that yw,=;at °h&I,,ikayu i.i conncetion with the transfer ( y t 1,O t,(FMN-. ; of owirrsfli Failure• to uol'1NI�tti: ur provldini a ral'a ,:.t'Inent may result in fines and/or mpriso'IT.ant. ANY ERASURES.WHITE-OU1 b OR GROSS OUTS WILL Vtslr:THE ASSIGNMENT )AN�D ALL ASSIGNMENT6 iii4T FOU.0,,1' '''... lrrs.+v ..__ w >•�h a,.S� �-ob:? ���Jt j�.-.�1..'��k+�OS6`1��,_j'�E..:.:Ltw-Y.l (!�yf(�IT`��'°\ � W" THIS IS r,,ef.OA'iPLETED 91'TH°>ELLEh and UelnerW t•.Ihe atJ:cnasor vJ'Ih thF'zhlcle. It?''• DLar..s,.le,.un .,, rnwt'-take�lppLCatien fora new Certitirale of Tillh ou i.j..tor± I,A 1!,and tde a onnncLd tety with thr rfasse:huLett.RMV and suimna•r Ibo_.:,;n:Ia,,iiU•: _ uwo oerof LwRyn•tm nas r, tah.V im-ilbeo on the rev.-rsv sde of tlts'.e:.il,,w to r,. p,iu Won's.r.,_d �•:'d'raitu•nutted porch,s•r,and lhva hwet) „an ti,r,>,drnot%:.hlNe+nL'.K''.same hieaall4\:rvsy'J.aJ•xlmbrarlLis. 0-L�i^_."_ __ ._._.— _. TL.1=E(„541. —� ObOEAErER OISti LC`.URE�TATEE.IEN7 CAU,104 ONLY CHIF A A BO>'IF THE 00^AIETEA REJnING DIFFc IS FROE1 ACi:'A.!,,.:AG: l -. I JI I�.tic<>,k.rl,,• r•.....In. IC I.J'g d-ieJ r•; k d (110 t.."Ing I I i❑ JI JI mi,.Its li Ih.. 1 I ml I.,• rv.l f •' 51di s. F- J ,NING OCJ UtAt1EP ul...,r` at 1h5,111, 1R vi ar.. I _ •- I 11L Ilu t' I LIS L,EP:NCY • � �•'t iJ ref 5,0�'.1?I,.N'J.,�-I,1 11 I J.L' l'. F"A eE cC TED .1 ,:N J t I t1F .,fl• 1_- 1�..,J:..I sl i @Ir1MC O,u.6,1 1L,ArJh : Lr wda'.I" — Fr�J,f.°-, ,•,t• _—_ _ _ _. ._I gat: Ttu a'1. -dt TcS l•�l c H�tl.1 JTro bilt_n - _N,\ .1 P,e'_a-GI P1G1 ._: .t;ouel . ASr:.• _ _ I ,`al. .^Ui1t. __—__ I I ISF 1 F •.:H1e1 )I... ..P.1. _ —� ._� ..—' _ ._—�l'.T:. ODOMETER ai_CLOSURE ST.TLOEW CAL TIM-ON-Y CHECK A BO",,THE OUOME 74,PE¢DIE DIFEHS FROM AC 111 M1. 5ACC 'I"Jify to tx tJ Lq In.�a ._. --t t I 1 II i Iy 10 eG.. nT [. I. It y...1,lr. .m,t•i., h ( I I lJ\ Ih 11 ,.. 1!U' lull..iI,l,, Inc ;el- J'Wlte ,c1, L 1 1 t tV.Hriu -ODOMPER of! I.1,..v,npc .Jn 1:'t l• t:sCREPAN„r nd,•m n .a.-, �_ l I r "�T,_111, I,.L '-�2 11r \. ,.I:. 10 h: 2rc.vE, R Tlt�r�t._rrrt •.4•S.,crdxa or N•,._, C <L,jb L_. `�h'4nll h,F.iPCNn_nl..: __. •—� _ I 'R,1 ',OH[.., --_-- ',,,. �I`-'N,LD rL ;,h Or F:,S-aU _AI*,-- , ODU'I'LTER DISCLOSURE LTATEMENT CAUTION:ONLY CHECK A HvX IF THE ODOME:rE RR,AOIN:..DIF-,R.I;R-1.Af .irt1_.J •:t Lyt I nryL 4.:J. i.____. _._ r t Ih I..:. 1':IXx�f :In., Ira J sF Lr1nero I N, ❑ no i `d I I ❑ < th III,,,J V I mlr 13 of lE III _ i rJ, 51 I J r > ,' -AMC ODOME ILFI L:. ,L.0 ul Ih tullcm t,sl.t_rr..nls L n (Tn, JI.,C IEPAN(Y Is C..-cl nI.. __-__ 0,JnkH r11 i 0dg.11 I OF UCEfiSEDUE:Lcf 'TN,IE: �... l)= 07a }y +retrta rGS tl.d Vn> 2i tlu nN_�denadti';1,IN_i.un UU. tf ,a Talr ar .v I.•'.F OF PVFwI-.-,FR'.l: F'IIN.ADURE.•, $I41JAiUf.. hUPG1U..:r hR: iD N ODOMETEROISCLL••SURESTA7ENENT CWTION:ONLY CHECK A BOX IF THE ODOMETER READING C FFERS''RO/A AC.UAL I.L.F:GE IoU,heel Iq all kom4111 i --. 1. ! t, c th.L .art; ^ II:.I y I „10:xo L Ic,.a:y: R.' d t ' J x J i he,•I t o dg th d.te r.dn,1 I n In 4 'and ,, It' 1 I 'r Jo Ih eh cle Tu'�` ,t d S JI ARNINI GDOMcTcii 'lIr V.•.I Ih•IOcrl si�.'merd. m��l r. _'I Ilm I'- DI.CE.PANGY IS rJ x' __._.__ r.l•Hl,til^Shift,J:':::10 opin.l U_AL.T_ININ ---_, cnLE: .MIP t" .!'D AL`�I,�-. ":r - 38 - Appendix 6 ® Check Reimbursement, cancelled check, and processed voucher Town of North Andover Mellon Trust ofNewEn0and,NA NO. 023773 120 Main Street UL- North Andover,MA 01845 113 EXPENSE DATE 1090 10!1512009 6 PAY —One Thousand Sixty Eight and 001100"`Dollars CHECK AMOUNT $1,066.00 I To Lydick Joseph THE C!0 Purchasing ` ORDER 120 Main Street OF North Andover,MA 01845 L. u'0 2 3?7 311, 1:0 1 130 2 9 201: 11'5 5 98 i 411' 010000 106800.x' II ' o r 8 m ; > r� z r m Q Iib) aN r it I?Oy o � h z e a !�m ro MW M!?8!OF NICAAA tt}L r Jt 1302920 HI EM"P09 MDR 6131-05 _ —_ .10116109 f js� n M Account Number ; 559814 Serial Number ; 23773 Paid Date 10/19/2009 CPCS Seq Number 4100137463 R/T 000011302920 - 39 - p tv LP c R 7 t1y Accounting Use Only ID!'1 i Department:P.ureh ino Warrant No: L Date:10/07!2009 Batch No: — Date: Vendor Name&Address Description Total Invoice# Account lg'l i `k'o.C' $ 1,068.00 1 1001001.1.4.0483.0000.2.531600 Joseph Lydick vehicle auction fees 21 Linlew Drive Derry,NH 03038 I I $1,068.00 I hereby certify that all goods,materials,and(or)services have been received,and puchased in compliance with Massachusetts General Laws. - - 40 - Bank of America I Online Banking I Transactiop Image Print Bank of America 01Ih- ul MyAccess Checking-3124 :Transaction Details j Transaction Details: Description: CHECKCARD 0902 PAYPAL -'EBAY INC 402-935-7733 CA 24492159245849381463508 Posting date: 09/03/2009 Amount: $221.00 1 Type: Check Card Account number: MyAccess Checking-3124 Cardholder name: 30SEPH G LYDICK '.. Merchant Category: Professional Service Expense Category: Professional Services &Membership Organizations Merchant Category 8999 Code: I Additional Details: My Description: i - 41 - Bank of America I Online Banking I Transaction Image Print Bank of America Oiiliyie Banking MyAccess Checking-3124:Transaction Details Transaction Details: Description: CHECKCARD 1003 PAYPAL':EBAY INC 402-935-7733 CA 24492159276849187045113 Posting date: 10/05/2009 Amount: $847.00 Type: Check Card Account number: MyAccess Checking-3124 Cardholder name: JOSEPH G LYDICK Merchant Category: Professional Service Expense Category: Professional Services&Membership Organizations Merchant Category 8999 Code: Additional Details: My Description: - 42 - My eBay Account:My Account Page I of 2 OaKii-I'mer;" Buy Sell My eBay Community Help HI,townofnorlhandoverl(Sign out) Site Map All Categories Search I Advanced Search Catagorlas• Motors Stores Dally Dual t=>My e8ay>My Account My eBIy townofnorthandover(6) Activity Messages Account My Account Close My Account Account Summary c,2: Invoices Latest invoice amount(Sep-15-09): US$847.00 ISelect Invoice 1 Credits,payments and refunds applied to latest Invoice: -US$1147.00 • Credits us$O.DU You can set preferences to download your • Payments -US$847.DO Invoices periodleally. US$ Gerunds us Amount due as of Oct-07-09: us$0.00 New activity not applied to invoice: us$0.00 Current Balance: us$0.00 View All account activity I Fees I Credits Payments and refunds Payment methods for Seller Foes Automatic payment method-PayPal Change Backup payment method-None You can make a one-time payment using PayPal or another payment method. Your PayPal Account Information R Now to PayPal? Already have a PayPal account? Paypal makes selling on eBay sale and easy.As a Link your existing PayPal account to save time when you buy and sell buyer,Paypal speeds up your checkout and allows you to pay items.To make things even easier,linking your PayPal account adds a seller without revealing your credit card information. your PayPal addresses to your eBay address book =Sign Up Link My a Pal`Account- PayPal.The safer,easier way to pay. ;11 Pay with your debit card,credit card,bank account or cash balance,Learn more Recent Feedback(View all feedback) Request Feedback Revision P; -43 - Account Activity for townofnorthandover Printer Friendly Page 1 of I Account Status for town ofnorthandover (E878210101001-USD) Current balance:$0.00 Payments&Refunds Title number Date v Tra saacetion Debits Credits typ PayPal Payment--Automatic Sep-30-09 09:12:47 PDT Payment -$847.00 Monthly Billing--Thank you Account Activity for townofnorthandover Page 1 of 1 erc. Buy Sell My eBay Community Help - Hi,lownofnorthandoverl(Sign out) Site Map All Cale Dries 'z'SeaYoti� Advanced Search '.. doah For Clunsaro Categories, Motors Stores Daily Deal l_ t.nr•rm»_J '.... Home>My spay> My Account> Seller Account> Account Activity Account Activity Account to: E878210101001-USD f show Details 1 Account Summary rF Invoices Latest Invoice amount(Aug-15-09): US$270.00 - Credits,payments and refunds applied to latest invoice: -US$49.00 Select Invoice 'Go I • Credits -US$49.DO referen. -_to download You n set _..._. .. f Payments us$D.DO your invo ces periodically. • Refunds US$O.OD Amount due as of Aug-24.09: US$221.00 New activity not applied to invoice, US$847.01) Current Balance: US$1,068.00 All Account Activity Fees Credits Payments&Refunds Customize view 14 Print Aug-16-09 to Aug-24.09 There are no transactions to display for the selected date range.You can change the date range by using the"Customize view"link from above. Hide Z—arrount fees/credits Page 1 of 1 Back to too About eBay I Announcements I Security Center I Resolution Center I eBay Toolbar I Policies I Government Relations I Site Map I Hall) Cops Fight 9 1995-2009 oBay Inc.All luohts ILSUVed.Dcsy Tt'd uademari s and brands are the pioporty of thav rcSpeUr e owners.Use of Uhl,Web site mmsututes acceptance of the e6zy User Agreement and Pdvacv Policy. eBay orndal timeli -44 - Account Activity for townofilorthandover Page 1 of 1 >: , o-� Buy Sell My eBay Community. Help WWI Hi,townofnorthandoverl(Sign out) Site Map �— All Categories Search: Advanced Search Daily St t M i Cate ores r Motors ores aea eCsaysogurilyt� � Y Dl ,- t`tpaplut��CvntAr.� Home>My eBay> My Account> Seller Account> Account Activity Account Activity Account ID: E878210101001-USD [Show Detalls] i Account Summary ?, Invoices Latest invoice amount (Aug-15-09): US$270.00 Credits,payments and refunds applied to latest invoice: -US$270.00 Select Invoice Go • Credits -US$49.00 _ ......,...__, .__ _...__.. _.... .. Payments -U$221.00 You can set preferences to Refunds us$0,00 download your invoices periodically. Amount due as of Sep-02-09: US $0.00 New activity not applied to invoice: U5$847.00 Current Balance: US$847.00 All Account Activity Fees Credits Payments&Refunds Customize view a� Print Aug-16-09 to Sep-02-09 Title Item number Date Transaction type Debits Credits PayPal Payment-- Automatic Monthly Aug-30-09 07:32:28 PDT Payment -$221.00 Billing--Thank you Hide Zero-amount fees/credits Page 1 of 1 I Back to top About eBay I Announcements Security Center I Resolution Center I eBay Toolbar I Policies I Government Relations I Site Map I Help Copyright C 1995-2009 eBay Inc.All Rights Reserved.Designated trademarks and brands are the property of their respective owners.Use of this Web site constitutes acceptance of the eBay User Agreement and Privacy Policy. eBay official time - 45 - Account Activity for towiofiiorthandover Page 1 of 1 : � n'. Buy Sell My eBay Community Help Hi,townofnorthandoverl(Sign out) Site Map All Categories Search:- Advanced search Categories T Motors Stores Daily Deal tR o{ ou�tori� Home>My eBay> My Account> Seller Account> Account Activity Account Activity Account ID: E878210101001-USD [Show Detalls 1 Account Summary ^' Invoices Latest invoice amount (Sep-15-09): US$847.00 Credits,payments and refunds applied to latest invoice: US$0.00 Select invoice e credits us$0.00 You can set preferences to • Payments us$0,00 download your invoices • Refunds Us$0.00 periodically. Amount due as of Sep-29-09: US$847.00 New activity Current Balance: to invoice: ---- —US $847.00 -- -- — — -----.j All Account Activity Fees Credits Payments&Refunds Customize view j eLO Print j Download [ collapse All 7 Sep-16-09 to Sep-29.09 There are no transactions to display for the selected date range.You can change the date range by using the "Customize view"link from above. Hide Zero-amount fees/credits Page 1 of 1 Back to to About eBay j Announcements(Security Center i Resolution Center i eBay Toolbar j Policies j Government Relations j Site Map j Help Copyright ry 1995-2009 eBay Inc.All Rights Reserved.Designated trademarks and brands are the property of their respective owners.Use of this Web site constitutes acceptance of the eBay User Agreement and Privacy Policy. eBay official time - 46 - Appendix 7 — Memorandum Of Vehicle Inventory TOWN OF NORTH ANDOVER, MASSACHUSETTS OFFICE OF TOWN ACCOUNTANT 120 MAIN STREET, 01845 NORTH Ottt�eo �6gti0 O A A�R�T�O�PP`y�y I �SSACHUS�� Lyne M Savage Telephone(978)688-9523 j Budget Director/Town Accountant email Isavage(a),townofnorthandover.com MEMORANDUM June 23, 2009 To: All Departments From: Lyne Savage, Town Accountant/Budget Director Subject: Vehicle Inventory The last few months Joe Lydick has been conducting a fiscal inventory of all the town vehicles. He has come across several vehicles that are still listed on my inventory data base that no longer appears to be owned by the town. Several things could have contributed to this problem; the vehicle was traded in or surplused without notification to my office. Moving forward any and all vehicles that are either being purchased, transferred between departments, traded in or surplused to be sold later at auction needs to complete the attached form. Depending on the reason for completing the form all areas need to be filled out completely. Filling this form out completely and accurately when ever a vehicle is purchased, transferred or surplused will enable the Accounting Department to correctly account for all town vehicles. Also with the purchase of a new vehicle the inventory control card should have a copy of the purchase invoice along with the title for the vehicle attached when turned over to the Accounting Department. The titles will be kept on file at Town Hall. If anyone has any questions please do not hesitate to give me a call, your cooperation is greatly appreciated. - 47 - Appendix 8 — Accounts Payable Procedures TOWN OF NORTH ANDOVER,MASSACHUSETTS OFFICE OF TOWN ACCOUNTANT 120 MAIN STREET,01845 NORTH Of T49b I6 ys a oL O p Airs f �9SS�CHUS���y Lyne M Savage Telephone(978)688-9523 Budget Director/Town Accountant email isnva e a townornorthandover com MEMORANDUM July 16,2008 To: Mark Rees,Town Manager From: Lyne Savage,Budget Director/Town Accountant Joe Lydick,Purchasing Director Subject: New Accounts Payable Process To be come more efficient and ensure that we are meeting all the requirements for MGL Chapter 30B, I am proposing a change to the processing of accounts payable. Presently all departments submit approximately 80%of their invoices to accounts payable on a manual voucher form and the other 20%is put through on purchase orders. The accounts payable clerk inputs the manual vouchers then into the system.These vouchers require the A/P clerk to manually confirm if they are with in the budgeted amount allocated to those departments line item, if they are not the department is require to issue a budget transfer to cover the amount before it can be processed, q g this creates a delay for processing the payments and is very inefficient. The new process requires that all purchases that exceed $4,999 must be done on a purchase order. This would solve two problems(1)Minimize manual vouchers which are time consuming and less efficient and(2) make sure that each department is following MGL Chapter 30B requirements. Additionally,all purchases of supplies and services between$5,000 and$25,000 require 3 quotes, and must be awarded to the lowest bidder,these quotes must be forwarded to purchasing before the requisition will be approved in order to confirm that MGL 30B requirements have been met. These quotes are then attached to the purchase order and filed for our records. - 48 - The new process for purchases over$4,999 would require each department to input a requisition into the system,which then goes through the following approval process. 1. Division Director—Purchase Approval 2. Purchasing Director—30B requirements 3. Town Accountant—Funding Approval 4. Accounts Payable Clerk—Issue PO# Presently we do not know of these purchases until after the fact. These procedure changes will also help the departments manage their budgets more efficiently and eliminate the need for writing u manual vouchers which is very time consuming. For any purchases made from$.01 -$4,999 each department must use best value business practices to determine which item they will purchase then they will complete one voucher per invoice. I - 49 - Appendix 9 ® Purchasing Director Job Description Position Title: Position Code: Effective Date: Director of Purchasing B-12 February 1, 2008 Reports To: Division: Previous Revision Date: Town Manager& Superintendent of Finance Schools Position Summary: (Purpose of Job) Position is responsible for overseeing all purchasing functions for municipal and school departments. Position will ensure the Town engages in cost effective purchasing procedures and contract management, and is in compliance with Massachusetts laws governing procurement of supplies, services, materials, equipment, construction projects, telecommunications, and utilities. Principal Responsibilities: 1. Ensures the Town engages in cost effective purchasing procedures and contract management. 2. Ensures compliances with Massachusetts laws governing procurement of supplies, services, materials, equipment, construction projects,telecommunications,and utilities. 3. Serves as an advisor to all departments engaged in purchasing activity. 4. Oversees invitation to bid processes, including the drafting of requests for proposals (RFP) and request for qualifications (RFQ). 5. Coordinates contract documents with Town Counsel insuring proper language,insurance requirements, etc. 6. Coordinates, as needed, procurement issues with Town Accountant. 7. Serves as a liaison to regulatory agencies, vendors and contractors. 8. Receives, investigates, and mediates purchasing complaints. 9. Administers intergovernmental purchasing agreements in cooperation with other agencies. 10. Maintains records and prepares reports, as required. 11. Assumes additional responsibilities, as necessary. Note: The purpose of this job description is to provide an outline of the more significant work elements of the position and to organize and present the information in a standard manner. It is not intended to describe all the elements of the work that may be performed by every individual in this classification,nor should it serve as the sole basis for Management and/or Human Resources decisions and actions. Position Title: Director of Purchasing Position Code: B-12 - 50 - Education: BA/BS in business or another related management field. Special License/Certification: Certified as a Massachusetts Certified Public Purchasing Official (MCPPO) or obtain certification within three (3) years of hire. Experience: Minimum of five (5)years of related purchasing experience,prefereably in a municipal/school setting. Required Skills, Knowled1le and Abilities: Thorough knowledge of municipal procurement procedures with respect to MGL c30B and public construction; have high level analytical skills; have excellent communication and technical writing skills; computer proficiency; and the ability to manage a large number of tasks and projects simultaneously. Understanding of school procurement issues is desirable. Contacts: Maintains regular contact with all other municipal departments, school department and various schools, state procurement officials,and vendors. Supervisory Responsibility (Also Positions Supervised): None Special Environmental Conditions: None - 51 - Appendix 10 — Town Organizational Chart Town of North Andover Organizational Chart Citizens of North Andover Town Meiling Finance Board of School Committee Selectmen Committee Legal Town Superintendent Mana er of Schools School Assistant Town Manager/HR Director Purchasin Elder Services Veterans Services InformalionTech. Youth/Rec Services Stevens Estate FacilBies M ml Stevens Library Outside Audit '.. Community Fi6Direct Police Ler Public Town Development Plannin Communications M mt Stree tslSidewalks Conservation Health Ins ectionalServ. Water BoardotA als - 52 - Appendix 11 ® 2007 Management Letter TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2007 Certified Public Accountants To the Honorable Board of Selectmen Town of North Andover,Massachusetts I SULLIVAN, ROGERS&COMPANY, LLC Corporate Place 1,Suite 204•99 South Bedford Street 01 Burlington,Massachusetts 01 803 P•781-229-5600 F•781-229-5610 www.sullivan-rogersxom Cnnfed Pu6G<Anoumm�u In planning and performing our audit of the financial statements of the Town of North Andover, Massachusetts(Town)as of and for the year ended June 30, 2007, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States,we considered the Town's internal control over financial reporting (internal control)as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly,we do not express an opinion on the effectiveness of the Town's internal control. "I A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize,record,process,or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency,or a combination of significant deficiencies,that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above. However,during our audit we became aware of several matters that are opportunities for strengthening internal controls and operating efficiency. Our comments and recommendations concerning those matters are summarized in the memorandum that accompanies this letter. This letter does not affect our report dated January 4,2008, on the financial statements of the Town. The Town's written responses to the matters identified in our audit have not been subjected to the audit procedures applied in the audit of the financial statements and,accordingly,we express no opinion on them. This communication is intended solely for the information and use of management,the Board of Selectmen and others within the organization and should not be used by anyone other than these specified parties. January 4,2008 - 53 - TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2007 TABLE OF CONTENTS i Page Commentsand Recommendations .............................................................................................................................. 1 Reconciliationof Cash ................................................................................................................................................ 1 I AccountsReceivable Software.....................................................................................................................................2 School Rental and Preschool Revolving Funds............................................................................................................3 I DepartmentalCash Receipts ........................................................................................................................................4 Boardof Health .............................................................................................................................................................. 5 StudentActivities ........................................................................................................................................................... 6 PhysicalInventory of Capital Assets ............................................................................................................................. 7 Performance Bonds........................................................................................................................................................ 8 j Special Education Program-Form 1-9 Employment Verification ................................................................................ 9 RiskAssessment and Monitoring................................................................................................................................. 10 Financial Policies and Procedures Manual ................................................................................................................... 1 1 Financial Systems Disaster Recovery Plan ................................................................................................................... 12 New Accounting and Financial Reporting Requirements for Other Post-Employment Benefits(OPEB) ................. 13 - 54 - Comments and Recommendations Reconciliation of Cash Comment We identified the following deficiencies related to the reconciliation of cash: - Individual bank account reconciliations were not performed timely during the fiscal year. - Cash was not reconciled timely between the Treasurer's cashbook and the general ledger during the fiscal year. Subsequent to year-end,the Town contracted with a consulting firm to reconcile cash as of June 30,2007. This reconciliation was not complete until December 2007,six months after the close of the fiscal year. Failure to perform these critical internal control functions in a timely manner inhibits the Town's ability to ensure that cash transactions are properly recorded,summarized and processed through the accounting system. Therefore,financial reports generated from the accounting system cannot be relied upon and the opportunity for fraudulent activity exists. Recommendation We recommend that the Treasurer/Collector's office implement procedures to perform all bank account reconciliations, including the investigation and resolution of reconciling items,no later than 30 days after the end of the previous month. We recommend that procedures be implemented to reconcile cash between the Treasurer's cashbook and the general ledger no later than 30 days after the end of the previous month. Management's Response Beginning in fiscal 2008,the Treasurer discontinued using a separate cash book(Quickbool<s)and began using the same software as the Town Accountant(BudgetSense)to reconcile cash. This has significantly streamlined the process of the cash reconciliation between the Treasurer and the Town Accountant. Cash is now being reconciled in a timely manner. The Treasurer's office has also implemented a procedure manual summarizing each step required to reconcile cash. - 55 - 1 Accounts Receivable Software Comment The Town utilizes Govern software to maintain its detailed accounts receivable balances. We identified the following related to the use of this software: >- The Town is still working with the first version of the software. Since the Town began using Govern (approximately four years ago)there have been approximately 10 updates,which the Town has not implemented. >- Detailed accounts receivable reports cannot be printed from the system. >- The "Balancing A/R"report generated from Govern does not foot across. The conditions identified above create difficulties and inefficiencies when reconciling the detailed accounts receivable balances to the general ledger. In addition,over the past several years,the Town has had significant employee turnover in the Treasurer/Collector's office. As a result,employees in the Treasurer/Collector's office may not have a full understanding of the use and capabilities of the software. Recommendation We recommend that the Town obtain the necessary updates to the most current version of the Govern software. We also recommend that procedures be implemented to obtain all software updates in a timely manner. We recommend that management evaluate the costibenefit of providing training on the Govern software to the current employees of the Treasurer/Collector's office. Management's Response We are getting a new server April200S.As part of the new server implementation,we are upgrading Govern to the latest version and getting trained on the new version. Govern created a new report entitled "Tax Receivers Detail(as of date)"report. This report contains all necessary detail(map, lot, owners name,amount billed,abated interest,payments,refunds and balance due). The totals of this report match the "Tax Receivers Totals(as of date)report. I The Treasurer has made Govern aware that then: "Balancing A/R"report doesn't foot properly. They are working together to resolve this issue. - 56 - 2 School Rental and Preschool Revolving Funds Comment The following table identifies the fiscal year 2007 activity of the preschool and school rental revolving funds: Pre-School School Rental Revenues 140,573 50,537 Expenditures 38,314 Net change in fund balance 102,259 50,537 Based on the activity for each program as identified above, it does not appear that expenditures are being properly allocated and charged to the Pre-School program and no expenditures are being charged to the school rental fund.As a result,expenditures may have been erroneously recorded to another fund.This is a breakdown in internal control. Recommendation We recommend that the Town implement procedures to ensure that all expenditures(direct and indirect)of the preschool revolving fund and school rental revolving fund are properly recorded and allocated to those funds. Management's Response The School Rental Fee and Preschool Revolving Accounts did not have a budget in FY07. Revenues received for school rentals and preschool tuition were properly deposited in the respective revolving account. Both the School Rental Fee Revolving Account and Preschool Revolving Account have budgets entered into the BudgetSense software.We are assigning appropriate expenses to these accounts and expect the FY08 balance in the Rental Fee Revolving Account to be at or close to zero,and the balance in the Preschool Revolving account to be approximately$108,000.The North Andover School Committee has approved an FY09 budget for the Preschool Revolving account that projects a June 30,2009 balance of$37,083. Procedures are now in place to ensure that all expenditures(direct and indirect)of the preschool revolving fund and the school rental revolving fund are properly recorded and allocated to those funds. - 57 - 3 Departmental Cash Receipts Comment Cash receipts are collected by various departments. We identified that many departments do not turn over their cash receipts to the Treasurer on a weekly basis. Holding cash and checks at the departmental level is a weakness in internal controls. The lack of timely turnovers to the Treasurer not only increases the risk of theft, misplacement,or misappropriation,but has a negative impact on cash flows and investment income and potentially delays the cash reconciliation process,which negatively impacts the financial reporting process. Recommendation We recommend that all Town departments deposit and/or turn over cash receipts to the Treasurer weekly(at a minimum). Implementation of this recommendation will strengthen internal controls over cash receipts and financial reporting,and will improve cash flows. Management's Response Management will implement a procedure requiring all departments to turn over their departmental receipts to the Treasurer's office no later than Monday for the prior week's receipts. - 58 - 4 Board of Health Comment We reviewed the internal controls related to the Board of Health Department(the Department)and noted the following deficiencies: -There is no formal policy and procedures manual that details the various aspects of the Department's activities. Such a manual would define, improve and standardize procedures and eliminate inconsistencies in the processes surrounding the Department's activities. It would also enhance the Town's ability to train and supervise new staff in the event of employee turnover. -There are no procedures in place to reconcile pre-numbered receipts issued to customers to cash receipts collected by the department. -There are no procedures in place to reconcile the Department's internal records of cash receipts(maintained in Quicken)to the Town's general ledger. -Cash receipts are kept in a locked filing cabinet before being turned over to the Treasurer.However,all Board of Health employees have access to the filing cabinet key. The current condition does not adequately safeguard assets. -Cash receipts are not turned over to the Treasurer on a weekly basis. The lack of timely turnovers to the Treasurer not only increases the risk of theft,misplacement, or misappropriation,but has a negative impact on cash flows and investment income and potentially delays the cash reconciliation process, which negatively impacts the financial reporting process. Recommendation We recommend that the Department prepare a formal, detailed financial policies and procedures manual for the Department's activities. We recommend that the Department implement procedures in which pre-numbered receipts are reconciled to cash receipts collected on a daily basis. We recommend that the Department implement procedures to reconcile internal records of cash receipts to the general ledger monthly. We recommend that cash receipts be kept in a secure location with limited access to only the appropriate personnel(i.e.,Department Head). We recommend that the Department turn over cash receipts to the Treasurer on a weekly basis (at a minimum). Management's Response The recommendations put forward are acceptable to the Health department. We will work with the Town Accountant to prepare a formal, detailed financial policies and procedures manual which will be distributed to all Community Development departments.Numbered receipts will be purchased in triplicate and will be consistent through out all Community Development Departments. All receipts will be kept in a secure place, and turned over to the Treasurer's office on a weekly basis. - 59 - S Student Activities Comment We reviewed the internal controls related to the middle school and high school student activity funds and identified the following deficiencies: » There are no procedures in place to reconcile the total individual student activity fund balances (maintained in the CAP software)to the book balances of the student activity fund checking and agency bank accounts.Performance of this reconciliation provides assurance that the student activity funds' balances are properly recorded. » There are no procedures in place to reconcile student activity fund balances per the CAP software to the balances recorded in the general ledger.Performance of this reconciliation provides assurance that the student activity funds'balances are properly recorded. Recommendation We recommend that procedures be implemented to reconcile the total individual student activity ftllld balances to the total book balances of the checking and agency bank accounts monthly. We recommend that procedures be implemented to reconcile the CAP software balances to the Town's general ledger balances monthly. Management's Response The school department business office now runs monthly reports from the CAP software for each individual activity account and sends the report to the appropriate advisor for reconciliation. Monthly reports including reconciliation of deposits to the agency account are sent to the treasurer's office.The school business office will work with the town treasurer to develop a process of monthly reconciliation to arrive at an agreed-upon end of year reconciliation by June 30,2008. - 60 - 6 Physical Inventory of Capital Assets Comment The Town maintains a perpetual inventory of its capital assets and records capital asset activity(additions, deletions, depreciation,etc.)on its general ledger for financial reporting purposes. However, the Town does not perform an annual physical inventory of its capital assets to reconcile with the perpetual inventory records. The performance of an annual physical inventory of capital assets would: >- Detect errors and/or irregularities with the perpetual inventory,thereby improving the accuracy of financial reporting of capital assets I >- Provide additional safeguards over the Town's capital assets Reconunendation We recommend that,at a minimum, the Town perform a physical inventory of its capital assets annually.The inventory could either be performed at the departmental level or centrally by a management-level employee(s) that possess significant knowledge of the Town's financial operations. We recommend that the physical inventory be reconciled with the perpetual inventory records maintained by the Accounting department and that all variances be investigated, resolved and corrected timely. Management's Response With the purchase of the new financial software this will allow management to implement and perform annual inventory of capital assets by function on a sample basis for the close of fiscal year 2009 - 61 - 7 Performance Bonds Comment The Treasurer/Collector's Office maintains performance bond deposits, totaling approximately$4,140,000, for various Highway Department,Planning Board and Conservation Commission purposes, These are escrow accounts that must be returned to the original owner upon satisfactory completion of each individual project.The Treasurer/Collector accounts for these deposits using spreadsheets that are submitted to the individual departments for their review at least twice per year. Consistent with prior years, there are no procedures in place to reconcile the outstanding balances of these deposits between the records maintained by the Town Accountant(general ledger),Treasurer/Collector and the appropriate departments. The lack of performing these reconciliations increases the likelihood that irregularities and/or errors could occur and not be detected and corrected timely,which is a weakness in internal controls. Also consistent with prior years, 13 individual passbook accounts are maintained for some of these deposits and are not updated frequently. The use of passbooks is inefficient. Recommendation We recommend that the Town implement procedures to reconcile the outstanding balance of performance bond deposits between the Town Accountant(general ledger),Treasurer/Collector and originating departments. Any discrepancies between the records of these departments should be appropriately adjusted in a timely manner. We recommend that the Treasurer/Collector close the individual passbooks and include the deposits as part of the Master Trust accounts already established and maintained by the Treasurer/Collector. Management's Response The performance bond balances are directly tied into the general ledger cash balances. Therefore,our implementation of the merger between the Treasurer's cash book and the general ledger will alleviate any discrepancies on a timely basis. The Treasurer continues to send a copy of the bond balances to the departments.The departments have never indicated that their balances didn't agree. In the next year our department plans on comparing the bank balances with our Excel worksheet,the hard copy files and the department's files. We agree that the use of passbooks is inefficient and have discontinued this process.The above referenced accounts are so old we are working on contacting the owner asking that they in turn contact the planning, highway or conservation department. Once we hear from the department that the work has been completed satisfactorily,we will return these funds. - 62 - 8 Special Education Program- Form 1-9 Employment Verification Comment The School Department does not maintain Form 1-9 Employment Eligibility Verification Forms for all of its employees that work on the Special Education program.We noted many instances where the employees'files either had incomplete or missing Form 1-9s. The Immigration Reform and Control Act of 1986(IRCA)requires employers to verify the employment eligibility status of newly hired employees.• As a result,the Department of Homeland Security has created the Form 1-9,and it requires that employers complete Section 2,Employer Review and Verification, of the form within three business days of hire. Employers must also obtain genuine supporting identification documentation,as listed on the back of the 1-9 forms,which verifies the national origin and/or citizenship status of the employees. Employers who do not comply with the IRCA requirements could face legal, financial,and public relations risks. Recommendation i We recommend that the School Department implement procedures to maintain Form 1-9 Employment Eligibility Verification Forms for all employees. Procedures must also be implemented to ensure that the Form 1-9s maintained in the personnel files are completed fully and supported by adequate identification documentation,as listed on the back of the 1-9 forms. Management's Response At the time of the audit,the school department was not properly filing and maintaining 1-9 Eligibility Verification Forms. Since that time we have made the following changes. • The School Department now does maintain an accurate record of the Form 1-9 Eligibility Verification Forms for all employees.These forms are kept in a separate file in the payroll office and should not be kept in the employee's personnel file. • The Director of Personnel is now responsible for completing the Form 1-9 for each new employee.The employee completes his/her section of the form and the Director of Personnel verifies that he/she has received the acceptable forms)of ID before completing and signing the form. The forms are then filed in the payroll office. - 63 - 9 Risk Assessment and Monitoring Comment When internal controls are initially implemented,they are usually designed to adequately safeguard assets. However,over time,these controls can become ineffective due to changes in technology, operations,etc. In addition,changes in personnel and structure,as well as the addition of new programs and services, can add risks that previously did not exist. As a result, all municipalities must periodically perform a risk assessment to anticipate, identify,analyze and manage the risk of asset misappropriation,Risk assessment(which includes fraud risk assessment), is one element of internal control. The risk assessment should be performed by management-level employees who have extensive knowledge of the Town's operations. Ordinarily,the management-level employees would conduct interviews or lead group discussions with personnel who have knowledge of the Town's operations, its environment, and its processes. The risk assessment process should consider the Town's vulnerability to misappropriation of assets, It should also address operations that involve heightened levels of risk When conducting the assessment,the following questions should be considered: • What assets are susceptible to misappropriation? • What departments receive cash receipts? • What departments have movable inventory? • What operations are the most complex? • How could assets be stolen? i • Are there any known internal control weaknesses that would allow misappropriation of assets to occur • and remain undetected? • How could potential misappropriation of assets be concealed? • What prior internal control.issues could still continue to be problematic? Once the areas vulnerable to risks have been identified, a review of the Town's systems,procedures,and existing controls related to these areas should be conducted, The Town should consider what additional controls(if any) need to be implemented to reduce risk. After risk has been assessed,periodic monitoring of the identified risk areas must be performed in order to evaluate the controls that have been implemented to mitigate the risks, Since control-related policies and procedures tend to deteriorate over time,the monitoring process ensures that controls are fully operational and effective. Recommendation We recommend that management develop and implement a risk assessment program to periodically anticipate, identify, analyze,and manage the risk of asset misappropriation.The risk assessment program should be formally documented and become part of the Town's financial policies and procedures manual. We recommend that management develop and implement a monitoring program to periodically evaluate the operational effectiveness of internal controls. The monitoring process should be documented in order to facilitate the evaluation of controls and to identify improvements that need to be made. Management's Response Management will work on developing and implementing a fraud risk assessment program during fiscal year 2009. - 64 - to Financial Policies and Procedures Manual Comment We believe that preparation of a formal policy and procedures manual would improve and standardize the Town's financial policies and procedures. Without formalized written policies and procedures,the Town is inherently subject to everyday inconsistencies in its operations. It is also difficult to measure performance and efficiencies without a baseline. The number of such inconsistencies can be minimized by the written codification of policies and procedures and insistence on adherence to them. Such a manual should include policies and procedures relative to all financial functions and processes, including, but not limited to,the following: • Budgeting • Financial reporting • Accounts receivable • Cash receipts • Purchasing • Accounts payable • Cash disbursements • Payroll • Personnel(i.e.,hiring,payroll and related changes,etc.) • Administration of grants • Administration of student activity funds • Month-end and year-end closing procedures • Risk assessment and monitoring The manual should also clearly define the objectives,responsibilities and authorizations for all employees/job positions. The use of written policies,procedures,and job descriptions in conjunction with specific assignment of responsibilities would increase supervisory personnel's effectiveness. Such written documents would decrease the time spent on supervision of clerical personnel and in attempts to define job responsibilities on each occasion of employee turnover. Recommendation We recommend that management develop and implement a formal financial policies and procedures manual. Management's Response Management presently has started documenting information for the Financial Policies and Procedure Manual. We will continue documenting various procedures to complete this recommendation in fiscal year 2009. - 65 - 11 Financial Systems Disaster Recovery Plan Comment The Town has property insurance; however it does not have a plan of action in case its offices should be destroyed by a fire,natural disaster such as a flood or tomado,or a bombing or other terrorist act. Such a disaster could strike at any time,perhaps without warning. In that case,the Town would have to act quickly to take steps critical to assessing and recovering from loss of, or damage to, its premises;furniture and equipment; and electronic data. A well-thought out and documented disaster recovery plan would help Town personnel act quickly and appropriately at a time when the stress and disruption of a disaster might adversely affect then'memory, emotions, and judgment. It would also help others take charge in place of managers who might be lost, injured, or otherwise unavailable at the time of the crisis. As part of developing a disaster recovery plan,arrangements should be made for protection of files and for use of backup space,equipment and furniture,or services should a disaster occur. In addition,while developing the plan,management personnel could take the opportunity to reassess the adequacy of its property insurance and to learn about some of the financial assistance that might be available to the Town after a disaster so that such assistance could be requested as quickly as possible. I Recommendation We recommend management develop and implement a financial systems disaster recovery plan. The disaster recovery plan should be documented and at least one copy stored in a secure, off-site location.We suggest that the documentation include the following: • A list of key contacts,including all employees and their emergency contacts,insurance companies, key suppliers and customers, and ilnportant professional services such as restoration specialists, • A current schematic showing how the computer system is designed and connected. • A current,complete set of documentation for all of the operating systems and application software (including version numbers). • A copy of the schedule for the off-site storage of backup data and programs. • A list of safety and community services that might be needed. • A list of pre-arranged temporary alternative work sites. • A list of probable equipment and supplies that would be needed for recovery operations and related vendors. The disaster recovery plan should be reviewed,updated, and tested at least annually. This will allow the disaster team members to assess the plan's continued appropriateness and feasibility in light of current conditions and to become familiar with implementing each step of the plan so that they could act more quickly and decisively at the time of the disaster. Management's Response Management will work on developnlg and implementing a Financial Systems Disaster Recovery Plan during fiscal year 2009. - 66 - 12 New Accounting and Financial Reporting Requirements for Other Post-Employment Benefits(OPEB) Comment The Town provides OPEB (i.e.,health insurance)to its qualified retirees. Consistent with other Massachusetts municipalities,the Town's OPEB expenditures are financed on a pay-as-you-go-basis from annual appropriations and the Town's current financial statements do not report the financial impact of OPEB until the benefits are paid. During fiscal year 2007,the Town had approximately 140 retirees that received such benefits.For the year ended June 30,2007,the cost of these benefits totaled approximately$383,000. The Governmental Accounting Standards Board(GASB)has issued Statement No.45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes the standards for the measurement, recognition,and display of other postemployment benefits (OPEB)expense/ expenditures and related assets, liabilities,note disclosures and required supplementary information in the audited financial statements of state and local governments. As part of determining OPEB amounts and disclosures,the Statement requires,at a minimum, a biannual OPEB actuarial valuation. Implementation of this statement will improve financial reporting by: i • Recognizing the cost of benefits in periods when the related services are received by the employer • Providing information about the actuarial accrued liabilities for promised benefits associated with past services and whether and to what extent those benefits have been funded • Providing information useful in assessing potential demands on the employer's future cash flows. Given the significant dollars spent on the Town's OPEB plans,the measurement of OPEB under the new standard will have a significant impact on the Town's financial statements.Additionally,the Town,for first time ever,will have the information and ability to evaluate the long-term financial implications of its OPEB obligations. The Town's required implementation date of GASB Statement No. 45 is fiscal year 2009. Recommendation We recommend that management familiarize itself with the requirements of GASB Statement No.45 and prepare for its implementation. Management's Response Management will issue an RFP for contract services to complete the GASB Statement#45 implementation so that the Town can meet the required implementation date of fiscal year 2009. 13 - 67 - Appendix 12 — 2008 Management Letter TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2008 Certified Public Accountants To the Honorable Board of Selectmen Town of North Andover,Massachusetts (� ,� SULLIVAN, ROGERS &COMPANY, LLC Corporate Place 1,Suite 204•99 South Bedford Street Burlington,Massachusetts 01803 P'781-229-5600 F 781-229-5610 s«Nwsullivan-rogers.com Cnnfied PublicAcroumm�n In planning and performing our audit of the financial statements of the Town of North Andover,Massachusetts (Town)as of and for the year ended June 3D, 2008, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States,we considered the Town's internal control over financial reporting(internal control)as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Town's intemal control. Accordingly,we do not express an opinion on the effectiveness of the Town's internal control. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency,or a combination of control deficiencies,that adversely affects the entity's ability to initiate,authorize,record,process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or a combination of significant deficiencies,that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses.We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above. However,during our audit we became aware of several matters that are opportunities for strengthening internal controls and operating efficiency. Our comments and recommendations concerning those matters are summarized in the memorandum that accompanies this letter. This letter does not affect our report dated December 8,2008,on the financial statements of the Town. The Town's written responses to the matters identified in our audit have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly,we express no opinion on them. This communication is intended solely for the information and use of management,the Audit Committee,the Board of Selectmen and others within the organization and should not be used by anyone other than these specified parties. December 8,2008 - 68 - TOWN OF NORTH ANDOVER,MASSACHUSETTS MANAGEMENT LETTER JUNE 30,2008 TABLE OF CONTENTS Page Commentsand Recommendations ................................................................................................................................. 1 PreschoolRevolving Fund ............................................................................................................................................. I StudentActivity Funds ................................................................................................................................................... 3 Treasurer's Office-Vendor Bank Account Reconciliation............................................................................................4 Treasurer's Office-Old Outstanding Checks ................................................................................................................. 5 PayrollTesting ................................................................................................................................................................ 6 Boardof Health ............................................................................................................................................................... 7 PerformanceBonds ......................................................................................................................................................... 8 Special Education Program- Form I-9 Employment Verification................................................................................ 9 Risk Assessment and Monitoring.................................................................................................................................. 10 i i Financial Policies and Procedures Manual ................................................................................................................... 11 Financial Systems Disaster Recovery Plan...................................................................................................................12 New Accounting and Financial Reporting Requirements for Other Post-Employment Benefits(OPEB) ................. 14 I - 69 - Comments and Recommendations Preschool Revolving Fund Comment The following table presents the fiscal year 2008 and 2007 activity of the preschool revolving fund: Difference Increase Difference Increase 2008 2007 (Decrease) Revenues 139,740 140,573 (833) Expenditures (319,906) (38,314) 281,592 Net change in fund balance (180,166) 102,259 (282,425) I Fund balance at beginning of year 209,237 209,403 (180,166) Fund balance at end of year $29,237 $209,403 $(180,166) Our prior year management letter identified that it did not appear that expenditures were being properly allocated to the Pre-School program and,as a result,expenditures may have been erroneously recorded to other funds. We identified the following regarding the fiscal year 2008 expenditures. • Indirect costs(utilities,custodial,principal,secretary and nurse)were allocated to the Pre-School program for the Atkinson,Franklin, Sargent and Thomson schools. However,only the Franklin and Sargent schools offer the pre-school program. The amount of indirect costs charged to the Pre-School program related to the Atkinson and Thomson schools totaled$18,809.66 and$18,557.55,respectively. • It is unclear why custodial and secretarial costs are included in the indirect cost allocation since a portion of custodial and secretarial costs are charged directly to the program. The amount of indirect custodial and secretarial costs charged to the Pre-School program totaled$13,787 and$6,749,respectively. • Employee benefits were not charged to the program. • In addition,based on the fiscal year 2008 activity recorded to pre-school revolving fund,it does not appear that the fee structure is designed to cover the cost of the program. Recommendation We recommend that procedures be implemented to ensure that all expenditures(direct and indirect)of the preschool revolving fund are properly recorded and allocated to those funds. We recommend that the Pre-School program's fee structure be designed to recover all program costs(direct and indirect). 1 - 70 - i Management's Response The School Department has implemented the necessary procedures to ensure that all expenditures (direct and indirect)of the preschool revolving fund are properly recorded and allocated to the preschool revolving fund. The fee structure of the Pre-School program is approved by the School Committee and is determined after comparison with similar pre-school programs in the area.Expenditures from the preschool revolving fund in normal years,are slightly less than the total revenues for that year. i i I 2 - 71 - Student Activity Funds Comment During last year's audit,we evaluated the systems of internal control related to the School Department's student activity fund and identified two control deficiencies. During fiscal year 2008, controls were implemented to resolve one of these deficiencies. However, the following deficiency remains unresolved: -There are no procedures in place to reconcile the total individual student activity fund balances(maintained in CAP software)to the balances recorded in the general ledger. Performance of this reconciliation provides assurance that the student activity funds'balances are properly recorded. We also identified that the reconciliation of the total individual student activity fund balances to the book balances of the student activity fund checking and agency bank accounts contained an unknown variance of $2,729. Recommendation We recommend that procedures be implemented to reconcile the total individual student activity fund balances (as maintained in CAP software)to the Town's general ledger balances monthly. We recommend that procedures be implemented to investigate and resolve all variances no later than 30 days after the end of the previous month. Management's Response The School Department has implemented procedures to reconcile the total individual student activity fund balances (as maintained in CAP software)to the Town's general ledger balances at the end of each month. The School Department has implemented procedures to investigate and resolve all variances as soon as possible, and no later than 30 days after the end of the previous month. 3 - 72 - Treasurer's Office-Vendor Bank Account Reconciliation Comment The vendor account's bank to book reconciliation includes amounts that have not been investigated and/or resolved timely. These amounts total approximately$4,000. Proper internal controls require the timely and appropriate resolution of reconciling items. Recommendation We recommend that the Treasurer/Collector's office implement procedures to investigate and resolve all reconciling items,no later than 30 days after the end of the previous month. Management's Response In the future we will resolve these(make necessary transfers)in a timelier manner. I i I 4 - 73 - Treasurer's Office-Old Outstanding Checks Comment The vendor and payroll outstanding checklists maintained by the Treasurer include many checks greater than three(3)months old totaling approximately$93,000. Typically,checks greater than three(3)months old reflect checks that have been void, lost,misplaced or stolen.There is currently no process/procedure in place to investigate and resolve the status of these checks. Recommendation We recommend that the Treasurer/Collector's office implement monthly procedures to investigate and resolve outstanding checks greater than three(3)months old. Implementation of this recommendation will strengthen internal controls over cash disbursements. Management's Response Going forward,with checks that are on our new accounting system,we will send out letters on a quarterly basis to vendors as well as employees so that we put an end to this problem. As for the checks that have been outstanding for greater than three years,we plan on following MGL Ch 200A S9A for abandoned property, These procedures include: sending a letter to the last known address,publishing the list and sending the list to the state treasurers'office. 5 - 74 - Payroll Testing Comment We selected a sample of 25 individual payroll transactions and identified the following deficiencies: • Nine(9)instances where the employee timesheet was not signed by the supervisor. Supervisory reviews of timesheets reduce the potential for inaccurate reporting of time and improper payroll charges. • Ten(10)instances where the employee timesheet was not signed by the employee. Employee signatures on timesheets provide evidence that they agree with the number of hours worked and provides an adequate audit trail. Recommendation We recommend that procedures be implemented to ensure that timesheets are signed by the appropriate parties. Management's Response We will implement a mandate to all departments that all timesheets/timecards are to be signed by both the supervisor and employee. i 6 - 75 - Board of Health Comment During last year's audit,we evaluated the systems of internal control related to the Board of Health Department (the Department)and identified five control deficiencies. During fiscal year 2008,the Town implemented controls to resolve four of these deficiencies.However,the following deficiency remains unresolved: There is no formal policy and procedures manual that details the various aspects of the Department's activities. Such a manual would define,improve and standardize procedures and eliminate inconsistencies in the processes surrounding the Department's activities. It would also enhance the Town's ability to train and supervise new staff in the event of employee turnover. Recommendation We recommend that the Department prepare a formal,detailed financial policies and procedures manual for the Department's activities. Management's Response In June 2007 the Health Department Administrative Assistant created an Administrative Reference Manual.The following list of topics were addressed by that document: Septic Files, Septic System Pumping Records, Septic Logbook,Title V Reports,Assessors Reports,Board of Health Agenda,Website Changes,Cash Receipts Log, Accounts Payable,Binder Files,Department Regulations and Coversheets. Among the topics were financial related items such as "cash receipt log" and"accounts payable".Management will update this manual as needed with any standardized policies or procedures prescribed by the accounting department. Future plans to create additional manuals for various department positions are being considered for this coming year to assist in better operations of the Health Department. i 7 - 76 - Performance Bonds Comment The Treasurer/Collector's Office maintains performance bond deposits,totaling approximately$3,810,000, for various Highway Department,Planning Board and Conservation Commission purposes.These are escrow accounts that must be returned to the original owner upon satisfactory completion of each individual project. The Treasurer/Collector maintains most of these accounts in a Master Trust account that identifies each individual deposit. The remainder of these accounts(12)are maintained in individual passbook accounts. Consistent with prior years,there are no procedures in place to reconcile the outstanding balances of these deposits between the records maintained by the Town Accountant(general ledger),Treasurer/Collector and the appropriate departments. Although the Treasurer/Collector provides a list of these deposits to the appropriate departments,there is no confirmation/response from the department that indicates that the balances agree to the departments'records. The lack of performing these reconciliations increases the likelihood that irregularities and/or errors could occur and not be detected and corrected timely,which is a weakness in internal controls. In addition,there are no procedures in place to follow-up on projects to determine whether projects have been j completed and the conditions of the individual deposit agreements have been met. As a result,some of the performance bond deposits date back as far as 1992. Recommendation We recommend that the Town implement procedures to reconcile the outstanding balance of performance bond deposits between the Town Accountant(general ledger),Treasurer/Collector and originating departments quarterly(at a minimum).Any discrepancies between the records of these departments should be investigated and resolved in a timely manner. In addition,we recommend that the applicable department head sign off and return the reconciliation to the Treasurer/Collector. We recommend that the Treasurer/Collector close the individual passbooks and include the deposits as part of the Master Trust accounts already established and maintained by the Treasurer/Collector. We recommend that the Town implement procedures requiring regular monitoring of contractor's compliance with the terms of performance bond agreements,so that the deposits held by the Town can be released when they are legally due. Management's Response During fiscal year 2009,the Treasurer sent a copy of the bond balances to each of the departments asking the departments to compare them to their records. The Treasurer then set up a meeting with each department to discuss any variances and to inquire about the possibility of closing out some of the older bonds.Moving forward each month a report listing current bonds and amounts will be forwarded to each department. The department will be required to attest to the accuracy of the report and return to the Treasurer with in 10 days of receipt. The Treasurer's performance bond balances are directly tied into the general ledger cash balances. So there are no discrepancies between the Town Accountant and the Treasurer. The Treasurer is not a signer on any of the passbooks and therefore is not authorized to close any out. We will consult with our Auditors on how to address this issue of the old passbooks. Passbooks have not been used a bond securities since 1995. 8 - 77 - Special Education Program- Form 1-9 Employment Verification Comment In prior years'audits,we identified that the School Department was not maintaining Form 1-9 Employment Eligibility Verification Forms for all of its employees that work on the Special Education program. Although improvement has been made in this area,we identified two instances where the employees'files were missing Form I-9's. The Immigration Reform and Control Act of 1986(IRCA)requires employers to verify the employment eligibility status of newly hired employees. As a result,the Department of Homeland Security has created the Form 1-9,and it requires that employers complete Section 2, Employer Review and Verification, of the form within three business days of hire. Employers must also obtain genuine supporting identification documentation,as listed on the back of the 1-9 forms, which verifies the national origin and/or citizenship status of the employees. Employers who do not comply with the 1 RCA requirements could face legal,financial, and public relations risks. I Recommendation We recommend that the School Department implement procedures to maintain Form 1-9 Employment Eligibility Verification Forms for all employees.Procedures must also be implemented to ensure that the Form I-9's maintained in the personnel files and supported by adequate identification documentation,as listed on the back of the 1-9 forms. Management's Response The School Department performed an internal audit and has identified some long-time employees missing 1-9 Forms. We have established a procedure to obtain the necessary documentation and correct the deficiency. We now have procedures in place to maintain Form 1-9 Employee Eligibility Form files for all employees. Director of Personnel,we are currently working to assure that every employee's 1-9 Form is complete and filed. 9 - 78 - Risk Assessment and Monitoring. Comment When internal controls.are initially implemented,they are usually designed to adequately safeguard assets. However,over time, these controls can become ineffective due to changes in technology, operations,etc. In addition,changes in personnel and structure,as well as the addition of new programs and services,can add risks that previously did not exist.As a result, all municipalities must periodically perform a risk assessment to anticipate,identify,analyze and manage the risk of asset misappropriation. Risk assessment(which includes fraud risk assessment),is one element of internal control. The risk assessment should be performed by management-level employees who have extensive knowledge of the Town's operations.Ordinarily,the management-level employees would conduct interviews or lead group discussions with personnel who have knowledge of the Town's operations, its environment,and its processes. The risk assessment process should consider the Town's vulnerability to misappropriation of assets. It should also address operations that involve heightened levels of risk. When conducting the assessment,the following questions should be considered: • What assets are susceptible to misappropriation? • What departments receive cash receipts? • What departments have movable inventory? • What operations are the most complex? • How could assets be stolen? • Are there any known internal control weaknesses that would allow misappropriation of assets to occur and remain undetected? • How could potential misappropriation of assets be concealed? • What prior internal control issues could still continue to be problematic? Once the areas vulnerable to risks have been identified, a review of the Town's systems,procedures,and existing controls related to these areas should be conducted. The Town should consider what additional controls(if any) need to be implemented to reduce risk. After risk has been assessed,periodic monitoring of the identified risk areas must be performed in order to evaluate the controls that have been implemented to mitigate the risks. Since control-related policies and procedures tend to deteriorate over time,the monitoring process ensures that controls are fully operational and effective. Recommendation We recommend that management develop and implement a risk assessment program to periodically anticipate, identify,analyze,and manage the risk of asset misappropriation. The risk assessment program should be formally documented and become part of the Town's financial policies and procedures manual. We recommend that management develop and implement a monitoring program to periodically evaluate the operational effectiveness of internal controls. The monitoring process should be documented in order to facilitate the evaluation of controls and to identify improvements that need to be made. Management's Response Management is working on developing and implementing a fraud risk assessment program. 10 - 79 - Financial Policies and Procedures Manual Comment We believe that preparation of a formal policy and procedures manual would improve and standardize the Town's financial policies and procedures.Without formalized written policies and procedures,the Town is inherently subject to everyday inconsistencies in its operations. It is also difficult to measure performance and efficiencies without a baseline. The number of such inconsistencies can be minimized by the written codification of policies and procedures and insistence on adherence to them. Such a manual should include policies and procedures relative to all financial functions and processes, including, but not limited to,the following: • Budgeting • Financial reporting • Accounts receivable • Cash receipts • Purchasing • Accounts payable • Cash disbursements • Payroll • Personnel(i.e.,hiring,payroll and related changes,etc.) • Administration of grants • Administration of student activity funds • Month-end and year-end closing procedures • Risk assessment and monitoring The manual should also clearly define the objectives,responsibilities and authorizations for all employees positions. The use of written policies,procedures, and job descriptions in conjunction with specific assignment of responsibilities would increase supervisory personnel's effectiveness. Such written documents would decrease tll e time spent on supervision of clerical personnel and in attempts to define job responsibilities on each occasion of employee turnover. Recommendation We recommend that management develop and implement a formal financial policies and procedures manual. Management's Response Management presently has in place the following procedure manuals: •Accounts Payable • Payroll In fiscal year 2010 we will work on completing the financial policies and procedures for the following: •Accounts Receivable • Cash Receipts 11 - 80 - i Financial Systems Disaster Recovery Plan Comment The Town has property insurance;however it does not have a plan of action in case its offices should be destroyed by a fire,natural disaster such as a flood or tornado,or a bombing or other terrorist act. Such a disaster could strike at any time,perhaps without warning. In that case,the Town would have to act quickly to take steps critical to assessing and recovering from loss of,or damage to,its premises; furniture and equipment; and electronic data. A well-thought out and documented disaster recovery plan would help Town personnel act quickly and appropriately at a time when the stress and disruption of a disaster might adversely affect their memory,emotions,and judgment. It would also help others take charge in place of managers who might be lost, injured,or otherwise unavailable at the time of the crisis. As part of developing a disaster recovery plan,arrangements should be made for protection of files and for use of backup space,equipment and furniture,or services should a disaster occur. In addition,while developing the plan, management personnel could take the opportunity to reassess the adequacy of its property insurance and to learn about some of the financial assistance that might be available to the Town after a disaster so that such assistance could be requested as quickly as possible. Recommendation We recommend management develop and implement a financial systems disaster recovery plan. The disaster recovery plan should be documented and at least one copy stored in a secure,off-site location. We suggest that the documentation include the following: • A list of key contacts,including all employees and their emergency contacts,insurance companies,key suppliers and customers,and important professional services such as restoration specialists. • A current schematic showing how the computer system is designed and connected. • A current,complete set of documentation for all of the operating systems and application software(including version numbers). • A copy of the schedule for the off-site storage of backup data and programs. • A list of safety and community services that might be needed. • A list of pre-arranged temporary alternative work sites. • A list of probable equipment and supplies that would be needed for recovery operations and related vendors. The disaster recovery plan should be reviewed,updated,and tested at least annually.. This will allow the disaster team members to assess the plan's continued appropriateness and feasibility in light of current conditions and to become familiar with implementing each step of the plan so that they could act more quickly and decisively at the time of the disaster. Management's Response The Department of Information Technology conducts regular backups of all system data to external media for remote storage. These operations are tested at least semi annually to ensure data is properly written and can be correctly restored. 12 - 81 - The Department will document system design, backup processes, applications,and operating systems in use. The Department will engage with Management and other stake holders to collect and document the personnel,processes and resources recommended to develop a living continuity of operations plan. The School department has a tape backup,and backs up the data on the network drive daily and stores the tape back up in a safe in the business office. I I I i �I I I 13 - 82 - New Accounting and Financial Reporting Requirements for Other Post-Employment Benefits(OPEB) Comment The Town provides OPEB (i.e., health insurance)to its qualified retirees. Consistent with other Massachusetts municipalities,the Town's OPEB expenditures are financed on a pay-as-you-go-basis from annual appropriations and the Town's current financial statements do not report the financial impact of OPEB until the benefits are paid. During fiscal year 2008,the Town had approximately 217 retirees that received such benefits. For the year ended June 30,2008,the cost of these benefits totaled approximately$1,136,000. The Governmental Accounting Standards Board(GASB)has issued Statement No.45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes the standards for the measurement, recognition,and display of other postemployment benefits(OPEB)expense/ expenditures and related assets, liabilities,note disclosures and required supplementary information in the audited financial statements of state and local governments. As part of determining OPEB amounts and disclosures,the Statement requires,at a minimum, a biannual OPEB actuarial valuation. Implementation of this statement will improve financial reporting by: • Recognizing the cost of benefits in periods when the related services are received by the employer • Providing information about the actuarial accrued liabilities for promised benefits associated with past • services and whether and to what extent those benefits have been funded • Providing information usefiil in assessing potential demands on the employer's future cash flows. Given the significant dollars spent on the Town's OPEB plans,the measurement of OPEB under the new standard will have a significant impact on the Town's financial statements. Additionally,the Town, for first time ever,will have the information and ability to evaluate the long-term financial implications of its OPEB obligations. The Town's required implementation date of GASB Statement No.45 is fiscal year 2009. Recommendation We recommend that management familiarize itself with the requirements of GASB Statement No. 45 and prepare for its implementation. Management's Response We have presently issued a contract with Alliance Benefit Group to complete GASB Statement No 45 implementation prior to the close of fiscal year 2009. 14 - 83 - Appendix 13 ® 2009 Management Letter TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2009 Powers & Sullivan 3 ' Certified Public Accountants 100 Quunnapowitt Parkway,Suite 101 Wakefield,MA 01880 T.781-914-1700 F.78 1-914-1701 www.powersandsullivan.com To the Honorable Board of Selectmen Town of North Andover, Massachusetts: In planning and performing our audit of the financial statements of the governmental activities,the business- type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts'(the Town)as of and for the year ended June 30, 2009, in accordance with auditing standards generally accepted in the United States of America,we considered the Town's internal control over financial reporting (internal control)as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control.Accordingly,we do not express an opinion on the effectiveness of the Town's internal control. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses.We did not identify any deficiencies in internal control that we consider to be material weaknesses as defined above. However,during our audit we became aware of other matters that are opportunities for strengthening internal controls and enhancing operating efficiency. The memorandum that accompanies this letter summarizes our comments and suggestions concerning those matters. This communication is intended solely for the information and use of management, and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. The Town's written response to the matters identified in our audit has not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly,we express no opinion on it. Zvl�w 11 November 30,2009 - 84 - TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30,2009 TABLE OF CONTENTS PAGE Prior Year Comments and Recommendations ...................................................................................................... 1 PreschoolRevolving Funds ................................................................................................................................... 2 StudentActivity Funds ........................................................................................................................................... 2 Treasurer/Collector's Office-Vendor Bank Account Reconciliation ...................................................................... 3 Treasurer/Collector's Office-Old Outstanding Checks ......................................................................................... 3 PayrollTesting ....................................................................................................................................................... 4 Boardof Health ...................................................................................................................................................... 4 PerformanceBonds ............................................................................................................................................... 4 Special Education Program- Form 1-9 Employment Verification .......................................................................... 6 RiskAssessment and Monitoring ........................................................................................................................... 6 Financial Policies and Procedures Manual ............................................................................................................ 6 Financial Systems Disaster Recovery Plan ........................................................................................................... 7 New Accounting and Financial Reporting Requirements for Other Post-Employment Benefits (OPEB).............. 7 Current Year Comments and Recommendations .................................................................................................. 8 Other Post-employment Benefits Actuarial Valuation ............................................................................................ 9 Integration of Accounts Receivable Software ....................................................................................................... 10 I - 85 - Prior Year Comments and Recommendations - 86 - i Preschool Revolving Funds Prior Year Comment The prior year management letter indicated that it did not appear that expenditures were being properly allocated to the Pre-school program and that it did not appear that the fee structure was designed to recover the cost of the program. It was recommended that policies and procedures be implemented to ensure that all expenditures of the preschool program (direct and indirect)are properly recorded and allocated to the preschool revolving fund. Additionally, it was recommended that the preschool program's fee structure be designed to recover all program costs(direct and indirect). Current Status-Partially Resolved. -Polices and procedures were implemented to ensure that all direct and indirect program costs are charged to the revolving fund. However, the fiscal 2009 activity resulted in a net loss of$35,224 and resulted in a fund balance deficit totaling$5,988. Recommendation i We recommend that the preschool program's fee structure be designed to recover all program costs(direct and indirect). Management's Response With the increase in enrollment for the 2009-2010 school year, expenses including the deficit will be covered, and as we move forward, tuition will be increased to offset any increases in expenses. Student Activity Funds Prior year comment The prior year management letter identified that there were no procedures in place to reconcile the total individual student activity fund balances (maintained in CAP software)to the balances recorded in the general ledger. Performance of this reconciliation provides assurance that the student activity balances are properly recorded. It was also noted that the reconciliation of the total individual student activity fund balances to the book balances of the student activity fund checking and agency bank accounts contained an unknown variance of$2,729. It was recommended the procedures be implemented to reconcile the total individual student activity fund balances (as maintained in CAP software)to the Town's general ledger balances at the end of each month. It was also recommended that procedures be implemented to investigate and resolve all variances no later than 30 days after the end of each month. Current Status-Resolved.- Monthly student activity reports are provided to the Treasurer/Collector and Town Accountant by the School Department. Procedures are in place to reconcile the bank balances to the general ledger balance and to reconcile the general ledger balance to the School Department's balances. 2 - 87 - Treasurer/Collector's Office-Vendor Bank Account Reconciliation Prior Year Comment The prior year management letter identified that the vendor account's bank to book reconciliation included amounts that had not been investigated and/or resolved timely. The amounts totaled approximately$4,000. It was recommended that procedures be implemented that require investigation and resolution of reconciling items within 30 days of the end of the previous month. Current Status-Resolved.-Procedures have been implemented to investigate and resolve reconciling items on a timely basis. Treasurer/Collector's Office-Old Outstanding Checks Prior Year Comment The prior year management letter identified that the vendor and payroll outstanding checklists included many checks greater than three (3)months old totaling approximately$93,000,Typically, checks greater than three (3) months old reflect checks that have been void, lost, misplaced or stolen.There is currently no process/procedure in place to investigate and resolve the status of these checks. It was recommended that the Treasurer/Collector implement monthly procedures to investigate and resolve outstanding checks greater than three (3)months old. To do so, the stale checks should be reclassified to tailings and removed from the outstanding check lists. For all uncashed checks greater than three years old,the Treasurer/Collector should follow the Massachusetts abandoned property law (MGL Chapter 200A, Section 9A)to bring them back into fund balance as miscellaneous revenue. Current Status-Partially Resolved-The Treasurer/Collector indicated that a procedure has been put in place to notify individuals of uncashed checks via phone call. However, the uncashed checks have not been moved to tailings and procedures have not been implemented to bring the uncashed checks back into fund balance. Management's Response The total outstanding checks equal $23,503.We have stopped payment and reissued$9,658.79.The remaining checks are in various stages of being resolved. This resolution process which is in conformity with MGL CH200A will be completed by May 1, 2010. 3 - 88 - Payroll Testing Prior Year Comment The prior year management letter identified instances where employee timesheets were not signed by the supervisor or the employee. It was recommended that procedures be implemented to ensure that timesheets are signed by the appropriate parties. Current Status- In our testing we noted no instances in which payroll was not signed off and authorized by a supervisor. However,we did note that the policies and procedures for school and non-school payroll are not the same. Nonschool employees,whether salaried or hourly, are required to complete and submit a signed time sheet.We noted no signed time sheets for any full-time or part-time school employees. Recommendation We recommend that payroll processing procedures be the same for all departments of the Town.We also, recommend that, at a minimum, all hourly/part-time employees prepare an individual time sheet/cost allocation sheet for each payroll period. Board of Health Prior Year Comment The prior year management letter identified that there was no formal policy and procedures manual detailing the various aspects of the Department's activities. It was recommended that the Department prepare a formal, detailed financial policies and procedures manual for the Department's activities. Current Status—Resolved-We were provided with a formal policy manual detailing the various activities of the Department. Performance Bonds Prior Year Comment The prior year management letter identified that the Treasurer/Collector maintains performance bond deposits, totaling approximately$3,800,000,for various Highway Department, Planning Board and Conservation Commission purposes.These deposits are escrow accounts that must be returned to the original owners upon satisfactory completion of each individual project. It was noted that no procedures were in place to reconcile the outstanding balances of the deposits between the records maintained by the Town Accountant(general ledger),Treasurer/Collector and the appropriate departments. Additionally, although the Treasurer/Collector provides a list of these deposits to the appropriate departments,there is no confirmation/response from the department that indicates that the balances agree to the departments'records. The lack of performing these reconciliation procedures increases the likelihood that irregularities and/or errors could occur and not be detected and corrected timely. 4 - 89 - The following recommendations were made to address the comments: Recommendation-That the Town implement procedures to reconcile the outstanding balance of performance bond deposits between the Town Accountant (general ledger), Treasurer/Collector and originating departments quarterly(at a minimum). Current Status-Partially Resolved.-The Treasurer/Collector reconciles the bank balances to the general ledger on a monthly basis.The Treasurer/Collector also maintains spreadsheets detailing all of the security deposits in the Town's possession.There are currently no procedures in place to reconcile the spreadsheets to the bank balances. Recommendation-That the applicable department head sign off and return a copy of the reconciliation to the Treasurer/Collector. Current Status- Unresolved.-We were not provided with documentation indicating that this procedure had been completed. Recommendation-That the Treasurer/Collector closes the individual passbooks and includes the deposits as part of the master trust account already established and maintained by the Treasurer/Collector. Current Status- Unresolved.-The Treasurer/Collector is not an authorized signer on the passbooks and therefore was unable to close the old passbooks and deposit them into the master trust account. Management's Response There are two reconciliations that must take place to address this finding.The first reconciliation is between the department(Planning, Conservation, Zoning Board and Public Works)records and the current bond balance recorded by the Treasurer/Collector. This reconciliation has and continues to take place.The second reconciliation is between the current bond balance and the bank statement to record interest earnings. This reconciliation is currently on going and is expected to be completed by February 15,2010. The pass book bonds,which have not been accepted since 1993, are in both the name of the person or organization posting the bond and the Town of North Andover necessitating approval by both parties to transfer them into the master trust account. The Treasurer/Collector will attempt to contact the person or organization to determine if they will authorize the transfer. Apart from the accounting, management will design processes and procedures to either return outstanding balances to the person or organization posting the bond or to take the necessary steps to foreclose on the bond and complete, to the extent possible, the outstanding work. 5 - 90 - Current Year Comments and Recommendations 8 - 93 - Other Post-Employment Benefits Actuarial Valuation Comment Now that the Town has met the requirements for implementation of GASB Statement No.45,Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, it is time to acknowledge the requirements necessary to stay in compliance with the GASB and obtain the information necessary to complete the Town's annual audit. For financial reporting purposes, an actuarial valuation is required at least biennially for OPEB plans with a total membership (including employees in active service, terminated employees who have accumulated benefits but are not yet receiving them, and retired employees and beneficiaries currently receiving benefits)of 200 or more, ' or at least triennially for plans with total membership of fewer than 200. This means that an updated actuarial valuation dated July 1, 2010 will have to be obtained in order for the Town to remain compliant with GASB Statement#45, for fiscal years of 2011 and 2012.This is two years after the original July 1, 2008 valuation which can be used for the fiscal years 2009 and 2010 audits. Recommendation We recommend that the Town work with their actuarial firm to assure that information needed for the next valuation report is provided in ample time for the fiscal year 2011 audit. Management's Response Management has already received a quote from a consultant to prepare updated actuarial valuations as of July 2010 in order to remain in compliance with the GASB Statement No.45,for fiscal years 2011 and 2012,which is two years after the original July 1, 2008 valuation which is being used for the 2009 and 2010 audit years. 9 - 94 - Integration of Accounts Receivable Software Comment We believe that the Town should eliminate the use of a stand-alone accounts receivable system and shift toward an integrated system.An integrated system would eliminate redundant processing and improve the Town's access to information.An integrated system would mean that customer payments would only be keyed into a system once.Analysis and other reviews could be performed online by the appropriate levels of management based on real-time data entry.Additionally, integrated systems would allow security features to ensure that only authorized personnel would be allowed to enter, modify,or change data. Other approved users would have the ability to look up data but not to originate or change it. Recommendation We recommend that the Town perform a review of the accounting system and implement this recommendation to obtain a streamlined system capable of generating data on a timely basis. Management's Response The Treasurer has obtained a quote from Unifund for them to install Revenue Sense, software that will work seamlessly with Budget Sense. The quote has been entered into the Capital Improvement Plan online program pending approval. 10 - 95 - Appendix 14 ® Select North Andover Charter and Bylaws Town Charter, Town of North Andover, MA http://www.townofnorthandover.com/Pages/NAndoverMA Clerk/TOWNCHARTER.pdf 1FCItemID= S029CC745 CHAPTER 3 BOARD OF SELECTMEN 3-2-2 The Board of Selectmen shall cause the laws and orders for the government of the town to be enforced and shall cause an up-to-date record of all its official acts to be kept. 3-2-3 The Board of Selectmen shall serve as the chief goal-setting and policy-making agency of the town and, as such, shall not normally administer the day-to-day affairs of the town,but shall instead regularly direct the Town Manager to help it in carrying out its administrative duties, and make recommendations to the town meeting relating to actions required to be taken by that body. I CHAPTER 4 THE TOWN MANAGER Section 3 Duties 4-3-2 He shall devote his full working time to the duties of his office; he shall not become a candidate for, or hold, any elective office during his term of appointment; and he shall not engage in any business activity during his term, except with the written consent of Board of Selectmen. He shall: (a) Attend all meetings of the Board of Selectmen, except when excused, and he shall have the right to speak but not to vote. (b) Assemble, prepare, and present to the Board of Selectmen all annual operating and capital budgets of the town and be responsible for the development and annual revision of the capital improvements program. (c) Be responsible for seeing that the budget is administered and expended as adopted by the town meeting and in accordance with general law, this charter, and by-law. (d) Keep the Board of Selectmen informed regarding all departmental operations, fiscal affairs, general problems, and administrative actions, and to this end shall submit quarterly reports to the board. (e) Keep the board informed regarding the availability of state and federal funds and how such funds might relate to unmet short-range and long-range needs. (f) Solicit and prepare applications for grants. (g) Be responsible for the day-to-day administration of the town's personnel system. (h) Be responsible for the purchasing of all town services and departments, except those of the school department. (I)Make recommendations to the Board of Selectmen regarding vacancies in town offices and boards to be filled by the Board of Selectmen. 0) Be responsible for the administrative functions of recreation, historical preservation, services for the elderly, and veteran's services. (k) Develop, keep, and annually update a full and complete inventory of all property of the town, except school property, both real and personal. (1) Distribute, or cause to be distributed, copies of the warrant and Finance Committee report for all town meetings to the residences of all registered voters. (m) Negotiate collective bargaining contracts on behalf of the Board of Selectmen, unless the board shall have designated another negotiator. - 96 - (n)Perform such other duties as may be required by this charter, by-law, or vote of the Board of Selectmen. Section 7 Responsibilities for Disbursements 4-7-1 Warrants for the payment of town funds,prepared and signed by the town accountant in accordance with general law procedures, shall be submitted to the Town Manager, and his approval thereof shall be sufficient authorization for payment by the director of the division of finance or his designee; provided,however, that at least three selectmen shall approve all warrants in the manager's absence or in the event of a vacancy in his office. GENERAL BYLAWS OF THE TOWN OF NORTH ANDOVER http://www.townofnorthandover.com/Pages/NAndoverMA WebDocs/townb ly aw.pdf?FC1temID=S02 B17C9E Chapter 3 ACCOUNTANT, TOWN § 3.1. Duties. (HISTORY:Adopted by the Town of North Andover as Chapter 4,§4.8 of the General Bylaws.Amendments noted where applicable.] § 3.1. Duties. It shall be the duty of the Town Accountant to inspect all bills presented against the town; to see that they have the approval of the officer,board or committee contracting the same, and are in proper form; to indicate the account to which they are chargeable; and, if there are funds, to transmit said bill with his certificate to the Town Manager, who shall draw his warrant on the Town Treasurer authorizing payment boards, and committees receiving and expending money; to investigate the conditions of all funds and trust funds held for the benefit of the town. He shall verify the amount of funds in the hands of the town officers, boards and by personal applications at banks of deposit, shall ascertain the amounts held therein to the credit of the town. He shall report to the town in detail under each department all receipts and expenditures by the town for the previous financial year. Chapter 61 TOWN PROPERTY, SALE OF ]HISTORY:Adopted of the Town of North Andover as Ch.5,Sec.5.7 of the General Bylaws.Amendments noted where applicable.] § 61-1 Authority § 61-1 Authority. Any board or officer in charge of any department of the town may, with the approval of the Selectmen, sell or otherwise dispose of any personal property of the town within its possession or control which has become obsolete or which is no longer required for use of such department, provided that the records of the Selectmen shall contain full information concerning the request of such department head for authority to dispose of such property, and their reasons for approving such request. - 97 - Appendix 15 ® MGL Town Accountant Duties MGL- Town Accountant Duties • PART I ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182) • TITLE VII CITIES, TOWNS AND DISTRICTS • CHAPTER 41 OFFICERS AND EMPLOYEES OF CITIES, TOWNS AND DISTRICTS • Section 50 Powers and duties Previous I Next Section 50.The auditors of a town shall examine the books and accounts of all its officers and committees intrusted with the receipt, custody or'expenditure of money,and all original bills andwouchers on which money has been or may be paid,from its treasury.They shall have free access to such,books,accounts, bills''and vouchers as often as once a month for the purpose of examination, and'shall examine the same at leastonce in each year, and annually report in writing the result of their examinations.They shall, at least once in each year,`verify i • PART I ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182) • TITLE VII CITIES, TOWNS AND DISTRICTS • CHAPTER 41 OFFICERS AND EMPLOYEES OF CITIES, TOWNS AND DISTRICTS • Section 51 Accounts payable; notice to creditors; part payments «Previous`I Next>, Section 51. An auditor may,notify a person to whom money Is due from the town that a.certai,n designated amount, which may be,either the,whole,or alp' part of the money so`due, is payable to him'upon application town'. officer named In the notice, and, unless payment is refused upon such application, no interestshall accrue on said designated amount after the giving of the notice.A,part payment authorized by this section shall not affect a right oftender, lien or other provision of law for the recovery of the amount of the debt,or interest or costs thereon,' remaining due; but if the part payment is • PART I ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182) • TITLE VII CITIES, TOWNS AND DISTRICTS o CHAPTER 41 OFFICERS AND EMPLOYEES OF CITIES, TOWNS AND DISTRICTS • Section 52 Approval of bills Previous'I Next Section 52.Ali accounts rendered to or kepi in the departments ofany=city shall be subject to the inspection of the city;auditor or officer having imilar duties, and in towns they shall be subject to the inspection of the selectmen. The,auditor orofficer having similar;duties,for the selectmen,'may;require`any,person presenting for settlement an account or-ciaim,aganst the city or town to make oath before him'or them, in such form as he or'they.may . Prescribe.as to the accuracy of such account or claim.The wilful making of a false oath shali'be punishable as perjury.The,iuditor or officer having similar duties in cities, and the selectmen In`towns,shall approve the' payment of all bilis or pay,rolls of all departments before they are paid by'the treasurer, and may disallow and refuse to approve for payment, In whole or in part; any claim as fraudulent, unlawful or excessive; and in that case the auditor or,officer having similar duties, or the selectmen, shall file with the city or town treasurer a written statement of:the reasons for the refusal; and the treasurer shall not pay any clairn or bill so,disallowed.This section shall not abridge the powers conferred on town accountants by sections fifty-five to sixty-one, inclusive. - 98 - ® PART I ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182) ® TITLE VII CITIES, TOWNS AND DISTRICTS ® CHAPTER 41 OFFICERS AND EMPLOYEES OF CITIES, TOWNS AND DISTRICTS ® Section 55 Appointment; tenure; powers and duties Previous'`I Next Section 55:Any town may authorize the selectmen to appoint a town accountant,who shall perform the duties and possess the powers of town auditors as defined in sections fifty to fifty-three, inclusive. In towns so authorizing the appointment of a town accountant the office of town auditor,may, if the town so vote, beabolished, In towns which have accepted chapter thirty-one or corresponding provisions of earlier laws, the appointment.of the town accountant shall be subject to the civil service rules.The town accountant;shall be sworn to the faithful . performance of his duties, shall hold no other town office involving the receipt or disbursement'of'money, shall hold office for three years and until a successor is qualified; provided, however, that�at�the discretion of the appointing authority,a person may be appointed to the position of town accountant fora term of not more than five years and until a successor is qualified.The town clerk, if he holds no other office involving the receipt or, disbursement of money, may be appointed to the position of town accountant. II i - 99 - I / / D Of1W t; 2011 JANUARY JANUARY IMPORTANT DATES JULY �j 451 S M T W T F S 1 New Year's S M T W T F S 1 da,L 17 Marlin Luther King,Jr.Day(US) j FEBRUARY 1 2 2 3 4 5 6 7 8 3 Lunar New Year 3 A/Al 5 6 7 8 9 9 10 11 12 13 14 15 5 Anniversary of the Constitution(M) 7 CCU 12 Lincoln's Birthday(US) 10 11 12 13 14 15 16 16 17 18 19 20 21 22 14 Valentine's Day 17 G) 19 20 21 22 23 21 Presidents'Day(US) 23 24 25 26 27 28 29 22 Washington's Birthday(US) 24 25 26 27 28 29 30 30 31 24 Flag Day(M) 31 MARCH 7 Eastern Orthodox Lent begins FEBRUARY 9 Ash Wednesday AUGUST 13 Daylight Saving Time begins S M T W T F S 17 St.Patrick's Day 20 Spring begins S M TIN T F S 1 2 3 4 5 21 Benito Juarez'Birthday(M) 1 2 3 4 5 6 6 7 8 9 10 11 12 A1111 7 8 9 10 11 12 13 C. 17 Palm Sunday 4 6, 13 14 15 16 17 18 19 19 Passover' 14 15 16 17 18 19 20 22 Good Friday 20 21 22 23 24 25 26 22 Earth Day 21 (:2)23 24 25 26 27 27 28 24 Easter 28 29 30 31 da .z�°b c2 24 Eastern Orthodox Easter 25 Faster Monday(C) 27 Administrative Professionals Day(C,US) MAY ,�Cjt2z-,, 12-- MARCH 1 Labor Day(M) SEPTEMBER 1 Holocaust Remembrance Day S M T W T F S 5 Battle of Puebla(M) S M T W T F S 1 2 3 4 5 8 Mother's Day(C,US) 1 2 3 10 Mother's Day(M) 6 7 8 9 10 11 12 21 Armed Forces Day(US) 4 j/01on("6 7 8 9 10 13 14 15 16 17 18 19 23 Victoria Day(C) 11 13 14 15 16 17 30 Memorial Day,Observed(US) 20 21 22 23 24 25 26 JUNE 18 19- !20 21 22 23 24 27 28 29 30 31 14 Flag Day(US) 25 C6>2 7 28 29 30 19 Father's Day 21 Summer begins 24 St.Jean Baptiste(Ou6bec) APRIL JULY 1 Canada Day OCTOBER 4/(nde andence/D,�V,,,(,t,,Jg),,�/f�////,/ S M T W T F S AUGUS? S M T W T F S 1 Holiday(C) 1 2 1 Firs Civic t of Ramadan 1 3 4 5 6 7 8 9 31 AV al Fitr 2 3 ' 4 5 6 7 8 10 11 12 13 14 15 16 1E E DER 9 41001P 12 13 14 15 lff) 17 18 19 20 21 22 23 11 PatriotDay(OS) 16 7 X18 19 20 21 22 15 Declaration of independence(M) 24 25 26 27 28 29 30 1 6 Independence Day(M) 23 25 26 27 28 29 23 Autumn begins 30 31, 29 Rosh Hashanah* OCTOBER MAY 8 Yom Kippur' NOVEMBER S M T W T F S 10 Thanksgiving(C) S M T W T F S 12 Day of the Race(M) 1 2 3 4 5 6 7 16 National Boss Day(US) 1 2 3 4 5 8 9 10 11 12 13 14 24 United Nations Day 6 (D 8 9 10 T/40/111 12 31 Halloween 15 16 17 18 19 20 21 NOVEMBER 13 14 15 16 17 18 19 22 23 24 25 26 27 28 1 All Saints Day(M) 20 22 23 24a,02& 26 2 Day of the Dead(M) 29 30 31 6 Daylight Saving Time ends 27 28, 29 30 7 (Eid)al Adha 8 Election Day(US) 14 Veterans Day(USYP, 11 Remembrance Day(C) JUNE 20 Revolution Anniversary(M) DECEMBER S M T W T F S ol /T,1ar,1,qivingf,,oj&,� S M T W T F S 26 First of Muharram 1 2 3 4 DECEMBER 1 2 3 5 6 7 8 9 10 11 Pear u" 7 Pea'rl Harbor Remembrance Day(US) 4 5' 6 7 $ 9 10 12 13 14 15 16 17 18 12 Virgin of Guadalupe(M) 11 (g) 13 14 15 16 17 21 Winter begins 19 20 21 22 23 24 25 21 Hanukkah' 18 19 20 21 22 ,"25/0% 24 26 27 28 29 30 25 Christniat," 25 27 28 29 30 31 26 Boxing Day(C) 26 Kwanzaa begins 2011 0 1.-,7 0,AJ JANUARY IMPORTANT DATES JULY JANUARY M T W T F S 1 New Year's S M T W T F 17 Martin Luther King,Jr.Day(US) 1 1 2 FEBRUARY p „ 2 3 4 5 6 7 8 3 Lunar New Year 3 i� 5 6 7 $ 9 9 10 11 12 13 14 15 5 Anniversary of the Constitution(M)1 10 11 12 13 14 15 16 2 Lincoln's Birthday(US) 16 17 18 19 20 21 22 14 Valentine's Day 17 019 20 21 22 23 23 24 25 26 27 28 29 22 Washington's Birthday(US) 24 25 26 27 28 29 30 30 31 24 Flag Day(M) 31 MARCH 7 Eastern Orthodox Lent begins FEBRUARY 9 Ash Wednesday AUGUST 9k m 13 Daylight Saving Time begins S M T W T F S 17 St.Patrick's Day S M T W T F S 20 Spring begins —Z 1 2 3 4 5 21 Benito Juarez'Birthday(M) 1 2 3 4 5 6 f � - 6 7 8 9 10 11 12 APRpalm Sunday 7 9 10 11 12 13 13 14 15 16 17 18 19 19 Passover' 14 5, 16 17 18 19 20 20 21 22 23 24 25 26 22 Earth Dayday 21 22 23 24 25 26 27 27 28 24 Easter 28 29 30 31 24 Eastern Orthodox Easter ` 25 Faster Monday(C) 27 Administrative Professionals Day(C,US) MARCH I Labor Day(M) SEPTEMBER S M T UV T F S 1 Holocaust Remembrance Day 5 Battle of Puebla(M) S M T W T F S 1 2 3 4 5 B Mothers Day(CLS) 1 2 3 6 7 8 9 10 11 12 210 Mother's orrces(ay(US) 4 00� 6 7 8 9 10 13 14 15 16 17 18 19 23 Victoria Day(C) 11 V 13 14 15 16 17 �✓ 20 21 22 23 24 25 26 JUNE emorial Day,observed(us) 18 20 21 22 23 24 ( f 27 28 29 30 31 14 Flag Day(US) 25 27 28 29 30 19 Father's Day 21 Summer begins 24 St.Jean Baptiste(Quebec) JULY APRIL 1 Canada Day OCTOBER M T W T F S AUGUS ` e S M T W T F 1 2 1 Civic Holiday(C) 1 1 First of Ramadan 3 4 5 6 7 8 9 31 ( V al Fitr 10 11 12 13 14 15 16 SEP AV 2 3 q 12 13 14 15 51,44ir0r014y a ).„ 9 f 17 18 19 20 21 22 23 15 Patriot Declaration of ndependence(M) 16 17 19 20 21 22 24 25 26 27 28 29 30 16 Independence Day(M) 23 25 26 27 28 29 23 Autumn begins 30 1 29 Rosh Hashanah" OCTOBER MAY 0 Yom Kippur" NOVEMBER 44i/C01yfifl"y11 S M T ICI T F S giving(C) S M T W T F S 12 Day of the Race(M) 1 2 3 4 5 6 7 16 National Boss Day(US) 1 2 3 4 5 8 9 10 11 12 13 14 24 United Nations Day 6 8 9 10 % 0/1 12 15 16 17 18 19 20 21 NOVEMBERen 13 14 15 16 17 18 19 22 23 24 25 26 27 28 1 All saints Day(M) 20 1 22 23 1 6 2 Day of the Dead(M) 29 30 31 6 Daylight Saving Time ends 27 28 29 30 7 (Eid)at Adha B Election Day(LIS) JUNE 11 Remembrance Day(C) DECEMBER 20 Revolution Anniversary(M) S M T W T F S �°' rs ofVNluhar�am M T W T F S 1 2 3 4 DECEMBER 1 2 3 5 6 7 8 9 10 11 7 PearlrHarbor Remembrance Day(US) 4 5 6 7 8 9 10 12 13 14 15 16 17 18 12 Virgin of Guadalupe(M) 11 12 13 14 15 16 17 19 20 21 22 23 24 25 21 Hanukkah' 18 )20 21 22 , -24 26 27 28 29 30 25 Q400 25 ty��/'27 28 29 30 31 26 Boxing Day(C) 26 Kwanzaa begins � �LFpl INTEROFFICE MEMORANDUM TO: Mark Rees,Town Manager DATE: May 23,2011 FR: Bruce Thibodeau,Director of Public Works CC: Lyne Savage,Town Accountant Tim Willett,Operations Manager RE: FEMA/MEMA Pre-Disaster Mitigation Grant for Rea's Pond Pumping Station Please find attached the contract documents for the above referenced grant in the amount of$99,992.62 for your approval and signature. Please sign where indicated in blue ink, have the Proof of Authorized Signature notarized, and return to me to be sent out. Once we have the signed copies back from the state I will send to you Lyne. The grant is the result of your work to receive funding from FEMA for pre-disaster mitigation funds along the Shawsheen River through Congressman Tierney's Office. Since flood studies done through the Army Corps showed that the Shawsheen flooding is due to the Merrimack River during flood events the funds were not needed along the Shawsheen. However, MEMA/FEMA allowed the Town to use the funds at another location that could cause a disaster during flood events. This is at the Rea's Pond Pumping Station located on Great Pond Road adjacent to both Rea's Pond and Lake Cochichewick,which experiences sewer surcharging during extensive rain events. In the past five years we have experienced five surcharge events that required 11 days of pumping with vacuum trucks to prevent sewerage overflows into the Town's water supply. The scope of work in summary will allow us to identify the sources of the surcharging,investigate and analysis alternatives,recommend a solution, and prepare the mitigation plan to move forward to seek construction funding. The total project cost is$133, 349.52 and will be funded by the grant and $33,356.90 of Town funds. The Town Funds are available from sewer system improvement accounts. The work will begin in when the executed state contract is received back and will take 9 months to complete. If you should have any questions, or need any additional information,please do not hesitate to contact me. i HOUSE OF REPRESENTAI"IVES STATE HOUSE,BOSTON,MA 02133-1054q - QFMCE b JOHN ® KEENAN CHAIRMAN 7TH ESSEX SALEM Committee on Telecommunications, Utilities and Energy 1 I, ROOM 473-B, STATE HOUSE TEL: (617) 722-2263 (1 FAX: (617) 722-2239 April 29, 2011 E-Mail: John.KeenanOdMAhouse.gov i i i Mr. Mark Rees Town of North Andover 120 Main Street North Andover, MA 01845 Dear Mr. Rees, It is my pleasure to extend my congratulations to you and the Merrimack Valley Mayors and Managers Coalition for your recent award of the $50,000 federal grant from the U.S. Department of Commerce's Economic Development Administration. I commend your Coalition, along with the Merrimack Valley Planning Commission, for securing this competitive grant. In light of this time of economic hardship, it is encouraging to know of your strategic approach to integrate clean energy initiatives into a regional master plan. This philosophy enables the kind of fiscal responsibility that not only helps our communities sustain economic viability,but fosters a collaborative working environment to achieve our clean energy goals. It is with similar foresight that I hope our Commonwealth can enhance energy efficiency and affordability. Once again, 1 congratulate you and thank you for your efforts. Best Regards, I _ Representative John D. Keenan Chairman,,Committee on Telecommunications, Utilities, and Energy State House, Room 473-B Boston, MA 02133