I was interested to read in todays Boston Globe that Merrill Lynch has agreed to repay the City of Springfield for nearly $14 million in investment losses, as well as the City’s legal fees.  The losses were reportedly related to “collateralized debt obligations,” which are securities linked to bonds and loans, including subprime mortgages, according to the Globe. Read the rest of this entry »

Here we are at the start of the MMA trade show and annual conference. TLB will be updating our blog throughout the event to let you know how things are going here. Thanks for visiting Thevenin, Lynch, Bienvenue, LLP at MMA. We hope you enjoy your time.

TLB provides auditing and financial services to Massachusetts municipalities - please ask us how we can help you!

Many cities and towns throughout Massachusetts have received loans from the Massachusetts Water Pollution Abatement Trust (MWPAT) for a variety of capital projects.  Until recently, it wasn’t clear that these communities were considered loan recipients of federal financial assistance. Read the rest of this entry »

As part of our municipal audit procedures TLB has always incorporated procedures to evaluate the validity of budget encumbrances at year-end. TLB has noted in many communities and school districts year-end encumbrances practices and procedures are being followed without an understanding of the concepts underlying the encumbrance process. For our fiscal year 2007 municipal audits we have spent additional effort with our clients to ensure they understand what constitutes a valid encumbrance for annual operating budgets. Read the rest of this entry »

Many municipalities have applied for the employer reimbursement provided for under Medicare Part D.  Most assumed the reimbursement, administered by the federal Department of Health and Human Services (HHS), was not subject to the audit requirements provided for under the Single Audit Act.  This includes several state comptroller and revenue offices, who have been advising their cities and towns that there was no Single Audit Act requirement.  As TLB understands it this guidance is in question. Read the rest of this entry »

As part of our fiscal year 2007 Massachusetts municipal audits, TLB has updated its school department internal control and compliance questionnaire and has been reviewing procedures at a number of school departments.  The results of what we have been finding indicates various levels of understanding (or misunderstanding) of a Massachusetts School Committees responsibility for monitoring the school department budget.  As auditors, TLB does not provide legal advice, however, does have a responsibility to test compliance with terms of laws, regulations, contracts, etc in connection with performing an audit in accordance with Government Auditing Standards.  To follow is our understanding of certain provisions of MGL with respect to School Department budgets. Read the rest of this entry »

With municipalities receiving significant Medicare Part D reimbursements in fiscal year 2007 and 2008, and with the tax rate setting season upon Massachusetts municipalities, TLB has been fielding several questions regarding the proper accounting treatment of these reimbursements. The Government Accounting Standards Board (GASB) has issued a Technical Bulletin concerning these reimbursements, effective for financial statements issued after June 30, 2006. Read the rest of this entry »

If your community has already issued permanent debt on its school construction project when it receives a lump-sum payment reimbursement from the Massachusetts School Building Authority the Town must set up a reservation of general fund balance according to Informational Guideline Release (IGR) 06-101 issued by the DLS. Read the rest of this entry »