A. 
Purpose. The purpose of regular reconciliations of cash and accounts receivable is to ensure revenue transactions are in balance, mitigate fraud, and safeguard general ledger accuracy. Failure to reconcile cash and accounts receivable hampers the Town's ability to produce reliable revenue reports, maintain accurate records, close its books, make timely submissions to the Massachusetts Department of Revenue, Division of Local Services (DLS), and complete audits. In addition, unresolved variances can reduce the amount of free cash certified by DLS and may result in significant deficiency findings by the Town's independent auditor.
B. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
ACCOUNTS RECEIVABLE
Outstanding amounts owed to the Town resulting from the issuance of bills for property taxes, motor vehicle excise taxes and charges for services, i.e., utility bills. (Accounts receivable resulting from invoices issued for police details are addressed in a separate policy.)
ACCOUNTS RECEIVABLE CONTROL ACCOUNT
A record of original entry in which the recordkeeper for the department issuing the bills reduces the total amount committed by amounts collected and abatements and exemptions granted, and increases it by refunds issued.
CASHBOOK
A ledger maintained by the Treasurer that tracks the Town's running balance of cash-on-hand in which is recorded all cash receipts, disbursements, and interest earned on investment of Town funds.
COMMITMENT
For each billing cycle, 1) in the case of a real estate tax commitment, a list of land parcels in the Town subject to the property tax, showing for each parcel the amount of the tax due and the name and address of the person liable for payment, and 2) in the case of a motor vehicle excise tax or utility commitment, a list of the individual accounts, the amount charged for each account and the name and address of the person liable for payment.
GENERAL LEDGER
A bookkeeping ledger that serves as a central repository for accounting data for an organization. Each account maintained by the organization is known as a ledger account, and the collection of all these accounts is known as the general ledger. The general ledger is the backbone of any accounting system which holds financial and nonfinancial data for the organization.
C. 
Applicability. This policy applies to any Town department with the responsibility for the issuance of bills for taxes or charges for services, and/or for the collection of fees; the Town Accountant, or his/her designee; and Treasurer/Collector, or his/her designee.
D. 
Policy.
(1) 
No later than 30 days after the end of each month the following shall occur. A department responsible for the issuance of bills shall reconcile the sum of all receivable balances from the commitment with the accounts receivable control account. Any variance shall be researched and resolved. Upon resolution, the department shall forward the receivables balance to the Town Accountant for comparison with the receivables control account in the general ledger. If the amounts do not match, the department and the Town Accountant shall determine the reasons for any variance (e.g., missing information, errors, and/or timing differences).
(2) 
No later than five days after receiving bank statements, the Treasurer/Collector shall reconcile the cashbook to the bank statements and reconcile any differences between the two. The Treasurer/Collector shall then transmit the reconciled balance to the Town Accountant for comparison to the cash control account in the general ledger. If the amounts do not match, the Treasurer/Collector and the Town Accountant shall determine the reasons for any variance (e.g., missing information, errors, and/or timing differences).
E. 
Procedures. The following internal controls shall be followed to implement this policy:
(1) 
For any billing cycle, a department responsible for the issuance of bills establishes an accounts receivable control account equal to the total commitment by tax or charge.
(2) 
Concurrent with the department's establishment of the accounts receivable control account, the Town Accountant posts the total commitment of tax or charge to an accounts receivable control account in the general ledger.
(3) 
Each subsequent collection, abatement/exemption, refund or transfer (e.g., to tax title in the case of property taxes), by parcel or account, is posted by the department to the commitment book and the department's accounts receivable control account with concurrent notification to the Town Accountant for posting to the accounts receivable control account in the general ledger.
(4) 
On a regular basis as described in the Town of Northfield Revenue Processing Policy, all departments receiving payments, whether pursuant to the issuance of bills or for fees, shall transmit to the Treasurer such amounts collected under the cover of a Schedule of Departmental Payments to Treasurer (a turnover sheet) showing the amounts by category of tax, charge or fee for the period just ended; a copy of which shall concurrently be transmitted to the Town Accountant for posting to the general ledger's revenue accounts and cash control accounts.
(5) 
Pursuant to the Town of Northfield Revenue Processing Policy, all cash receipts and checks are deposited into the bank. Within two days of the receipt of cash and checks, the notification of disbursements made, or notification of interest earned, the Treasurer shall post the transactions to Treasurer's cashbook.
F. 
References.
(1) 
Massachusetts Collectors & Treasurers Association. Treasurer's Manual 2017 and Collector's Manual 2017.
(2) 
MA DOR Division of Local Services Best Practice. Reconciling Cash and Receivables, February 2016.
(3) 
Town of Northfield Revenue Processing Policy.
A. 
Purpose. To establish a policy that sets out procedures for a uniform method for approval, payment and accounting of reimbursements to employees for legitimate business-related expenses.
B. 
Applicability. This policy shall apply to all employees, elected officials, appointed officials, and volunteers of the Town. The term "employee" will be used throughout the policy for all to whom this policy applies.
C. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
APPROVED BUSINESS MEALS
The limit on the amounts authorized to be expended, inclusive of taxes and tip, for breakfast, lunch and dinner that will be paid for with Town funds per a schedule that is established by the Selectboard, and is subject to periodic modification. Reimbursement for alcoholic beverages is prohibited by MGL c. 44, § 58.
BUSINESS MILEAGE
Mileage incurred by an employee in a personal vehicle as part of business travel from Town offices to an outside destination. For in-town business travel by employees, using their personal vehicles, between Town buildings, or about Town, in the performance of their duties, mileage shall be the actual mileage recorded on the vehicle's odometer. If the person is traveling from their home to an outside business location, only the mileage incurred in excess of their normal round-trip commute to the Town Office shall be reimbursable.
BUSINESS TRAVEL EXPENSES
Expenses incurred for either in-state and out-of-state travel, e.g., plane tickets, airport parking, shuttle fees, hotel accommodations, meals, conference/training fees, parking, tolls, taxis and ride sharing (e.g., Uber or Lyft). This does not include mileage incurred by an employee for in-town travel or travel to other Massachusetts municipalities in the performance of regular, daily tasks.
IN-STATE TRAVEL
An employee's travel to other locations in the state other than in-town travel or travel to other Massachusetts municipalities in the performance of regular, daily tasks.
IRS MILEAGE RATE
A rate published annually by the Internal Revenue Service that reflects the average cost per mile of operating a motor vehicle capturing the costs of gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation.
JOB RELATED EXPENSES
Pre-authorized expenses incurred in purchasing items required for the performance of an employee's duties. Reimbursement of expenses incurred by employees pursuant to provisions of collective bargaining agreements shall be governed by such agreements.
D. 
Policy.
(1) 
Town employees are expected to make every effort to prepay all business travel expenses (e.g., plane tickets, hotel accommodations, conference/training fees, etc.) by check through the accounts payable process.
(2) 
Business travel expenses incurred during in-state travel require the pre-approval of the employee's department head or his/her designee. Evidence of advance approval must be included with an employee's request for reimbursement. The Town Administrator shall determine the form by which approvals are obtained. In the case of elected officials, appointed officials and volunteers, approving authorities shall be the chairperson of the respective Boards and Committees on which the individual serves.
(3) 
Out-of-state business travel requires the pre-approval of the employee's department head and the Town Administrator. Evidence of advance approval must be included with an employee's request for reimbursement. The Town Accountant shall determine the form by which approvals are obtained. In the case of elected officials, appointed officials and volunteers, approving authorities shall solely be the chairperson of the respective boards and committees on which the individual serves.
(4) 
For business travel requiring the use of a vehicle, including travel between Town buildings in the course of a day, employees shall make reasonable efforts to use municipal vehicles instead of their personal vehicles.
(5) 
Before paying for job-related expenses out-of-pocket (e.g., office supplies, public works materials, food), Town employees should make every effort to procure such items from businesses where the Town has an account and will invoice the Town for purchases.
(6) 
Prior to the purchase of job-related expenses out-of-pocket, an employee shall obtain the authorization of his/her supervisor. Such authorization may be verbal or written.
(7) 
An employee may not be reimbursed for sales tax incurred. To avoid incurring sales tax, an employee can obtain a certificate from the Town Treasurer stating the Town is exempt from sales tax for presentation to a business at the time of purchase of a job-related item.
(8) 
When reserving overnight accommodations for business-related travel, employees are expected to stay at "average rate" facilities utilizing a conference rate or a group rate when available.
(9) 
Employees shall be reimbursed for room rates and basic internet service only. Examples of charges that will not be reimbursed include, but are not limited to, "wet-bar" expenses, gym fees, laundry and movies.
(10) 
Reimbursement for eligible expenses incurred for overnight accommodations will be only for actual expenses incurred.
(11) 
When making travel reservations, employees are expected to secure the lowest available fares for airplane, train, or other vehicle transportation. Airplane travel should be at economy, coach, or other lower travel rates.
(12) 
Rental cars should be limited to mid-class or smaller vehicles, unless the number of persons attending requires a larger vehicle.
(13) 
The Town will reimburse employees for approved business meals per a schedule authorized by the Selectboard. Reimbursement for alcoholic beverages is prohibited by MGL c. 44, § 58.
(14) 
The following expenditures incurred by an employee in the course and scope of their duties shall not be reimbursed:
(a) 
Massachusetts sales tax not including hotel/motel and meals excise taxes;
(b) 
Alcoholic beverages including liquor, beer and wine;
(c) 
Flowers and gifts for employees or others, in certain cases (see Municipal Expenditures: Proper Public Purposes in City and Town, Volume 19, No. 2, a publication of the Massachusetts Department of Revenue, Division of Local Services);
(d) 
Charitable contributions;
(e) 
Political contributions;
(f) 
The personal portion of any trip;
(g) 
Family expenses, including those of a partner when accompanying employee on Town business, child care or pet care;
(h) 
Entertainment expenses, including theatre, shows, movies, sporting events, sightseeing tours, golf, spa treatments, etc.;
(i) 
Nonmileage personal automobile expenses including repairs, insurance, gasoline, traffic citations;
(j) 
Personal losses incurred while on Town business;
(k) 
Expenses paid for by any other organization;
(l) 
Valet services;
(m) 
Mileage while traveling as a passenger in a privately owned car;
(n) 
Personal travel insurance;
(o) 
Medical or hospital expenses;
(p) 
Theft, loss or damage to personal property while on Town business; and
(q) 
Personal toilet articles, reading material, or personal telephone calls while on Town business.
(15) 
If it is determined that an employee knowingly and purposefully falsified a request for reimbursement, the Town may take disciplinary action up to and including termination.
E. 
Procedures.
(1) 
Requests for reimbursement shall be on a form prescribed by the Town Accountant accompanied by required supporting documentation.
(2) 
Expenses incurred that are eligible for reimbursement shall include:
(a) 
Business mileage;
(b) 
Business travel expenses; and
(c) 
Job-related expenses.
(3) 
On January 1 of each year, that Town Administrator shall distribute to all employees a schedule of the limits on the amount of reimbursement for travel-related expenses as established by a schedule adopted by the Selectboard, which shall be subject to periodic modification.
(4) 
Mileage reimbursement for authorized use of a personal vehicle for the performance of regular, daily tasks or travel to attend other activities (e.g., conferences, training or seminars) shall be based on the IRS mileage rate in effect at the time the vehicle is used. Requests for reimbursement shall be accompanied by a map, Google maps or equivalent, showing the beginning and ending destinations and the mileage.
(5) 
Requests for reimbursement must be accompanied by original, itemized receipts. When an employee pays by personal check, a copy of the canceled check must also be attached to the reimbursement form. When an employee uses his/her credit card or debit card, the customer copy of the credit/debit card receipt or a copy of the credit/debit card statement showing the charge must also accompany the request for reimbursement.
(6) 
Original receipts must indicate the date and time, name of business, location, amount paid and business purpose (handwritten by the employee).
(7) 
A request for reimbursement form must be signed by the employee and submitted to the department head or his/her designee for review, approval and signature.
(8) 
Prior to signing the reimbursement form, the department head or his/her designee shall review the request for reimbursement form to ensure that the costs incurred comply with this policy. If questions arise, the department head shall seek clarification and additional documentation, if needed, from the employee before signing the form.
(9) 
Requests for reimbursement should be submitted no later than one month after expenses have been incurred. Requests for reimbursement for June expenses must be made by July 14.
(10) 
If documentation (e.g., credit card statements, cancelled checks) required of an employee to accompany requests for reimbursement will not be received until after the close of a fiscal year (June 30), the employee, through his/her department head, shall submit a request to the Town Accountant to have the current fiscal year's funds needed to cover the reimbursement encumbered so they will carry over into the next fiscal year and be available to cover the reimbursement request when submitted.
(11) 
Upon signing the request for reimbursement form, the department shall submit the reimbursement form and its attachments to the Town Accountant to be paid in the next accounts payable cycle.
F. 
References.
(1) 
Statutes.
MGL c. 41, § 52
MGL c. 44, § 58
MGL c. 268A, § 3
(2) 
Municipal Expenditures: Proper Public Purposes in City and Town, Volume 19, No, 2, a publication of the Massachusetts Department of Revenue, Division of Local Services.
A. 
Purpose.
(1) 
The purpose of this policy is to formalize the process the Town must follow to comply with state statutes that govern a municipality's procurement of goods and services and to identify parties that are subject to such compliance.
(2) 
It is recognized that as of the date of adoption of this policy, the Town has yet to implement a purchase order/encumbrance system that is referenced below as a component of the policy. Further, it is recognized that in the absence of such a system there is: 1) no formal internal control mechanism to validate that a prospective purchase is budgeted for, appropriate and legal; and 2) the unexpended balance of budget reports is likely overstated because, at any given time, they do not capture the obligation to ultimately pay for goods and services on order. Consequently, it is agreed that, by adoption of this policy, there is a commitment to implement a purchase order/encumbrance system effective a date to be determined by the Selectboard upon recommendation by the Town Administrator.
B. 
Applicability. This policy applies to all employees, boards and commissions of the Town.
C. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
CHIEF PROCUREMENT OFFICER
(1) 
Pursuant to MGL c. 30B, § 2, the purchasing agent appointed by the Selectboard, or otherwise designated by charter or local bylaw for the appointment of a Chief Procurement Officer, to procure all supplies and services for the Town.
(2) 
Pursuant to MGL c. 30B, § 19, the Chief Procurement Officer of a governmental body is authorized to delegate procurement powers and duties to other employees of the governmental body.
ENCUMBRANCE
Triggered by the issuance of a purchase order to a vendor; the reservation of a portion of an appropriation to insure that funds are available to pay an invoice from the vendor upon receipt for the good or service ordered.
INTERNAL CONTROL
Procedures put in place to safeguard assets, promote accountability, increase efficiency, and stop fraudulent behavior.
SOUND BUSINESS PRACTICE
Practice that ensures the receipt of favorable prices by periodically soliciting price lists or quotes.
D. 
Policy. It shall be the policy of the Town as follows:
(1) 
The Town Administrator shall serve as the Chief Procurement Officer of the Town.
(2) 
With the exception of those requiring the Selectboard's signatures, the Town Administrator shall be the signatory on all Town contracts including purchase orders at the time a purchase order system is implemented.
(3) 
As Chief Procurement Officer of the Town, the Town Administrator may delegate his/her powers and duties to one or more employees of the Town. Such delegation shall be in writing, signed by the Chief Procurement Officer, and state the activity or function authorized and the duration of the delegation. A delegation may be in specific or general terms, may be limited to a particular procurement or class of procurements, and may be conditioned upon compliance with specified procedures. A delegation may be revoked or amended whenever the Chief Procurement Officer determines that revocation or amendment is in the best interests of the Town. A delegation of powers or duties by the Chief Procurement Officer and any revocation or amendment thereof shall not take effect until a copy of the same has been filed with the Office of the Inspector General of the Commonwealth.
(4) 
It shall be the policy of the Town that all employees shall procure goods and services pursuant to sound business practices and in compliance with all applicable laws and regulations of the Commonwealth and Town Bylaws, including ethics provisions that govern the conduct of public officials and employees.
(5) 
It shall be the policy of the Town that all current department heads designated by the Chief Procurement Officer to solicit bids for goods and services shall, within six months of the implementation of this policy, pursue, if they have not already done so, all training opportunities and certifications offered by the Commonwealth in the area of procurement that is pertinent to their daily operations including the following:
(a) 
MGL c. 30B - procurement of supplies and services;
(b) 
MGL c. 149 - building (vertical) construction;
(c) 
MGL c. 7C, §§ 44-58 - designer services; and
(d) 
MGL c. 30, § 39M - Non-building (horizontal) construction.
(6) 
It shall be the policy of the Town that all new employees designated by the Chief Procurement Officer to solicit bids for goods and services shall, within six months of their date of hire, pursue all training opportunities and certifications offered by the Commonwealth in the area of procurement that is pertinent to their daily operations including those described in the Subsection D(5)(a) through (d) above.
(7) 
The Town shall comply with all purchasing-related record retention requirements as promulgated by state statute and regulations.
E. 
Procedures. The following procedures shall be followed in the procurement of goods and services:
(1) 
Subject to delegation of authority by the Chief Procurement Officer, each Town department head shall be responsible for the procurement of goods and services of the department.
(2) 
Upon the implementation of a purchase order/encumbrance system, the purchase of any good or service in excess of $1,000 shall require the issuance of a purchase order.
(3) 
Until that time that a purchase order/encumbrance system is implemented, if a good or service of any amount is on order and anticipated to be delivered and/or invoiced after the close of a fiscal year, each department must initiate a request to the Town Accountant to carry forward funds from the current year's budget so they are available to pay invoices when submitted.
(4) 
Upon the implementation of a purchase order/encumbrance system, only those good or services on order of an amount or $1,000 or less shall be subject to the language in the subsection above.
(5) 
For all purchases, vendors shall be instructed to transmit invoices to the department that generated the order.
(6) 
Pursuant to Massachusetts General Laws, the solicitation of bids for any good or service in an amount less than that requiring competitive procurement, must be made on the basis of sound business practices, i.e., to the extent practicable be made competitively by seeking at least three quotations based on a common specification.
(7) 
The solicitation of bids for goods or services in excess of thresholds established by Massachusetts General Laws, except those exempt from competitive bidding by statute, must adhere to the requirements of such laws.
(8) 
In the case of procurement of those goods or services exempt from competitive bidding by statute, to the extent practicable, efforts shall nonetheless be made to solicit competitive quotations from at least three vendors/firms.
(9) 
The procurement of a good or service which is estimated to cost in excess of thresholds requiring competitive bidding pursuant to Massachusetts General Laws may not be split into multiple procurements in order to evade the requirements of such laws.
(10) 
Upon the implementation of a purchase order/encumbrance system, The Town Accountant shall establish a hierarchy of approvals of purchase order requisitions that, at a minimum, shall include:
(a) 
The department head of the requisitioning department if the requisition was initiated by one of his/her designees;
(b) 
The Town Accountant or his/her designee; and
(c) 
The Town Administrator.
(11) 
A department head shall submit a request to the Chief Procurement Officer to award a bid that requires competitive procurement pursuant to Massachusetts General Laws, and such request shall be accompanied by evidence that competitive quotes were sought in compliance with such laws governing the good or service being procured.
(12) 
Upon the implementation of a purchase order/encumbrance system, if the procurement is for a good or service that calls for the signing of a detailed contract in addition to a purchase order, a copy of the proposed contract shall accompany the requisition for a purchase order and include signature blocks for the Town Accountant (to certify the availability of funds), and for the Town Administrator, unless the signatures of the Selectboard is required.
(13) 
The Town Administrator, in consultation with Town Counsel, shall develop a template for a standard contract for the procurement of goods and services that shall include provisions that will protect the interests of the Town and will be subject to modification to meet the needs of any particular procurement.
(14) 
Pursuant to Massachusetts General Laws, competitive bids may be waived in instances where it is demonstrated that only one vendor can provide a good or service at a threshold amount of established by statute, referred to as a sole source procurement. In such a case, a department head seeking to make a sole source procurement shall seek approval from the Chief Procurement Officer in the form of a memorandum presenting evidence that there is only one vendor who can provide the good or service.
(15) 
Pursuant to Massachusetts General Laws, whenever the time required to procure a good or service would endanger the health or safety of the people or their property due to an unforeseen emergency, the Chief Procurement Officer may authorize an emergency procurement that does not comply with statute. A record of each emergency procurement shall be maintained, documenting the basis for the determination that an emergency exists, the name of the vendor providing the good or service, the amount and type of contract, and a list of the supplies or services purchased under the contract. The record of the emergency procurement must be submitted as soon as possible to the Secretary of State for publication in the Goods and Services Bulletin.
F. 
References.
(1) 
Statutes.
MGL c. 30B
MGL c. 149
MGL c. 7C, §§ 44 through 58.
MGL c. 30, § 39M
MGL c. 268A
MGL c. 66, § 8
(2) 
Publications of the Commonwealth of Massachusetts, Office of Inspector General:
The Chapter 30B Manual: Procuring Supplies, Services and Real Property
Designing and Constructing Public Facilities
Charts on Procurement Procedures
Model Designer Selection Procedures for Municipalities and Other Local Public Agencies
Code of Conduct for Public Employees
A. 
Purpose. The purpose of this policy is: 1) to safeguard Town assets by ensuring that payments to the Town in the form of cash, check, credit card, and other forms of payment for property taxes, excise taxes, charges for services, fees, and federal and state government receipts are properly and timely secured, recorded, and deposited in Town bank accounts; and 2) to maximize cash flow to finance Town expenditures and maximize interest income.
B. 
Applicability. This policy applies to the head of each Town department that receives payments including, but not limited to, fees, taxes, and charges for service; the Treasurer/Collector; and the Town Accountant. For the purposes of this policy, the titles of department head or Treasurer/Collector shall refer to that position or his/her designee, unless specified otherwise. It also applies to the role of the Town Administrator's regarding surety bonds.
C. 
Policy.
(1) 
The head of each department that receives payments is responsible for adhering to procedures established by this policy to ensure that all receipts are recorded accurately, kept secure from loss or theft, and turned over timely to the Treasurer/Collector.
(2) 
The Town Administrator shall ensure that surety bonds are maintained for all individuals responsible for handling payments to indemnify the Town from potential loss or theft.
(3) 
Each department must turn over payments at a minimum on a weekly basis and must do so immediately whenever cash receipts exceed $250. Notwithstanding the above, at month-end, departmental staff will turn over all revenues no later than 11:00 a.m. on the last business day of the month.
D. 
Procedures. The following internal controls shall be followed to implement this policy:
(1) 
Receipt of payments.
(a) 
Upon the receipt of a cash payment, the receiving department shall compare the amount paid to the amount shown on the remittance and any discrepancy shall be noted at that time.
(b) 
Town department receiving payments must issue a receipt for each payment using prenumbered receipt books, regardless of whether the payer requests a receipt. A copy of each receipt shall be maintained by the department.
(c) 
All departments must identify the form of payment (check, cash or credit card) on the departmental copy of each receipt issued.
(d) 
Any check received for payment shall be immediately endorsed "For Deposit Only" using a stamp or by handwriting.
(e) 
Each department receiving payments shall secure them in a locked cashbox or safe until turned over to the Treasurer/Collector.
(f) 
Notwithstanding any delegation of responsibility, each department head is accountable for insuring that the processing, recording, record retention, and turnover of payments to the Treasurer/Collector is performed in accordance with this policy. To the extent practicable, segregation of duties should be adhered to with separate individuals responsible for: 1) receiving payments, 2) recording payments, and 3) turning payments over to the Treasurer/Collector.
(2) 
Turning over revenues.
(a) 
All payments received by a Department shall be turned over to the Treasurer/Collector in the time frame prescribed in this policy under the cover of a Schedule of Departmental Payments to the Treasurer (also known as a Turnover Sheet consisting of the Treasurer's copy, Form AD-9 and the Accountant's copy, form AD-10), or equivalent, with each form signed solely by the head of the Department. All receipts should tie back to the numbered receipt book and the turnover sheet. An employee so authorized by the head of the department shall deliver the turnover package to the Treasurer/Collector's office in person. At no time shall the employee leave a turnover package in the Treasurer/Collector's office unattended.
(3) 
Receiving turnovers.
(a) 
Upon the receipt of a turnover package, the Treasurer/Collector shall count the payments, to the extent practicable, in the presence of the authorized employee. Any variance between the amount counted and the amount on the turnover sheet shall be reconciled and corrections to the Turnover Sheet shall be made and initialed by both parties.
(b) 
Following the reconciliation of any discrepancies between the count and the Turnover Sheet, the Treasurer/Collector shall sign and date each of the forms AD-9 and AD-10, or equivalent. The Treasurer/Collector's office shall provide a copy of the signed form AD-9 to the department that generated the turnover to be retained by that department as a record of the transaction. In turn, the department shall transmit the signed form AD-10 to the Town Accountant. The Town Accountant shall not accept any turnover that is not signed by a Treasurer/Collector.
(c) 
As frequently as possible but not greater than weekly, the Treasurer/Collector will complete a turnover of all the collections processed for taxes and other committed receivables. The turnover form will report all the collections summarized by receipt type, which must reconcile to the bank deposits for the same period.
(d) 
Within two days of receipt of cash and checks, the Treasurer/Collector shall enter all amounts received that day into the Treasurer's cashbook, and to the Town's financial management software accounting module for review by the Town Accountant; and create a deposit package and deposit the payments at the bank. The Town Accountant shall not post the entries to the accounting module unless the forms AD-10 supporting those entries are signed by the Treasurer/Collector. Until the deposit is completed, the Treasurer/Collector will ensure that all receipts are secured at all times, either in a cash drawer or in a safe overnight if circumstances delay the daily deposit to the following day.
(e) 
The head of each department that has turned over payments to the Treasurer/Collector shall review the Town Accountant's monthly revenue reports to verify all payments to the Treasurer/Collector have been posted to the correct revenue account in the general ledger. Any discrepancies should be reported to the Town Accountant.
(4) 
Insufficient funds.
(a) 
Upon notification from the bank of the deposit of a check with insufficient funds, or an invalid or otherwise unpaid electronic funds transfer (EFT), the Treasurer/Collector will enter a reversal of the amount in question to the appropriate account in the general ledger and notify the department responsible for the turnover. The Treasurer/Collector will also make an entry to the cashbook reversing an earlier posting of the receipt.
(b) 
The Treasurer/Collector, pursuant to MGL c. 60, § 57A, will notify the payer in writing of the bounced check or rejected EFT and require payment of the original amount plus a $25 penalty to be due in 10 days and in the form of cash, money order, or certified check.
(c) 
The head of the department receiving the original payment shall, if requested, assist the Treasurer/Collector in pursuing the amount owed. If the original payment was for a license or permit, the department shall suspend the license or permit until the original amount and penalty has been paid pursuant to MGL c. 40, § 57.
(5) 
Reconciliation.
(a) 
In accordance with the Town of Northfield Cash and Receivables Reconciliations Policy, the Treasurer/Collector will reconcile the cashbook with bank statements and provide a summary of cashbook balances to the Town Accountant monthly.
(6) 
Audit.
(a) 
All cash management activity is subject to review by the Town Accountant and Northfield's independent auditor at any time deemed necessary.
E. 
References.
(1) 
Statutes.
MGL c. 40, § 57
MGL c. 41, § 35
MGL c. 41, § 57
MGL c. 44, § 69
MGL c. 60, § 5
(2) 
Town of Northfield Cash and Receivables Reconciliations Policy.
(3) 
Massachusetts Collectors & Treasurers Association: Treasurer's Manual and Collector's Manual.
A. 
Purpose. To mitigate the risk of fraud and ensure the Town disburses cash only for valid legal liabilities, this policy establishes guidelines for the expenditure of Town funds.
B. 
Applicability. This policy shall apply to Town department heads, chairs of boards and committees who submit requests for expense and/or payroll disbursements; the Town Accountant with responsibility for reviewing invoices to be paid and preparing accounts payable warrants; the Treasurer/Collector and Financial Assistant with responsibility for administering payroll including maintaining data on employees' compensation and pay rates, and posting accounts payable and payroll transactions to the cashbook; and the Town Administrator serving as personnel officer of the Town per Town bylaw; and the Selectboard with responsibility to review, approve and sign payroll and accounts payable warrants.
C. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
ACCOUNTS PAYABLE
Money owed by an organization to its suppliers shown as a liability on the organization's balance sheet.
ACCOUNTS PAYABLE WARRANT
A written order by one party that instructs or authorizes another party to pay a specified recipient a specific amount of money for goods or services rendered.
BALANCE SHEET
A statement of financial position or statement of financial condition. It is a summary of the assets, liabilities and net equity of an organization as of a specific date, such as the end of its fiscal year.
ENCUMBRANCE
Triggered by the issuance of a purchase order to a vendor; the reservation of a portion of an appropriation to ensure that funds are available to pay an invoice from the vendor upon receipt for the good or service ordered.
GENERAL LEDGER
A bookkeeping ledger that serves as a central repository for accounting data for an organization. Each account maintained by the organization is known as a ledger account, and the collection of all these accounts is known as the general ledger. The general ledger is the backbone of any accounting system which holds financial and nonfinancial data for the organization.
IRS FORM W-9
An Internal Revenue Service form most commonly used in a business-contractor arrangement. Businesses (e.g., municipalities) can use Form W-9 to request information from contractors they hire. When a business pays a contractor in excess of $600 during a tax year, the business is required to file IRS Form 1099-MISC, a variant of Form 1099.
PAYROLL WARRANT
A written order by one party that instructs or authorizes another party to pay wages and salaries to employees.
D. 
Policy. The following shall be policy of the Town:
(1) 
Prior to payment, all disbursements of the Town shall be subject to review and approval by the Town Accountant to ensure that they are:
(a) 
For a legitimate public purpose;
(b) 
In compliance with applicable federal and state statutes and regulations;
(c) 
In the case of vendor payments, authorized by adopted operating or capital budgets, Revolving Funds, grant agreements or state statute;
(d) 
In the case of payroll expenditures, only for employees occupying positions that are authorized by the annual operating budget, adopted capital budgets, Revolving Funds or grant agreements;
(e) 
In the case of payroll expenditures, based on time and attendance records reviewed and approved by the appropriate department head or chair of a Town Board or Committee, and supported by provisions of existing collective bargaining agreements or the adopted annual compensation schedule for nonunion personnel; and
(f) 
If applicable, supported by language in underlying contracts of purchase orders.
(2) 
Every disbursed check shall include language on its face that reads "Void if not cashed within one year of issuance."
(3) 
No check or wire transfer shall be made until accounts payable and payroll warrants are signed by the Town Accountant and the Selectboard.
(4) 
A majority of Select Board members must approve the warrant unless the Select Board designates one of its members to review and approve bills or payment warrants, with a report provided at the next scheduled meeting of the Board. They may sign the warrant in advance of a duly posted meeting, during the meeting, or alternatively, Selectboard members may travel to town hall individually to sign the warrant on nonmeeting days.
(5) 
Vendor payments must be based on original invoices and made only to entities with valid IRS Form W-9s on file.
(6) 
As a tax-exempt organization, the Town will not pay sales tax on any expense, including reimbursement of sales tax to an employee for costs incurred in the performance of his/her duties (see Town of Northfield Employee Reimbursements Policy). (If employees expend their own funds in the performance of their duties, they should obtain from the Town Accountant, for presentation to a vendor, a copy of a certificate showing the Town is an organization exempt from sales tax.)
E. 
Procedures.
(1) 
Accounts payable. The following procedures shall be followed in processing accounts payable disbursements:
(a) 
Upon the implementation of a purchase order/encumbrance system, any purchase of a good or service in excess of $1,000 shall require a purchase order pursuant to the Town of Northfield, Procurement Policy which shall result in the encumbrance of funds to pay the vendor when its invoices are received.
(b) 
Until that time that a purchase order/encumbrance system is implemented, if a good or service of any amount is on order and anticipated to be delivered and/or invoiced after the close of a fiscal year, each department must initiate a request to the Town Accountant to carry forward funds from the current year's budget so they are available to pay invoices when submitted. Upon the implementation of a purchase order/encumbrance system, only those good or services on order of an amount or $1,000 or less shall be subject to the language in the subsection above.
(c) 
Accounts Payable warrants are to be prepared by the Office of the Town Accountant on a biweekly basis.
(d) 
The Town Accountant shall determine the schedule by which departments shall transmit invoices for inclusion in each biweekly warrant.
(e) 
The transmittal of invoices to the Town Accountant shall be made under a standard cover sheet prescribed by the Town Accountant.
(f) 
An original invoice shall be required for payments to be made. The Town Accountant shall have the authority to set standards by which electronic transmittals from vendors will be acceptable in lieu of hard-copy original invoices.
(g) 
No invoice shall be paid prior to the delivery of the good or service reflected in the invoice.
(h) 
Each invoice shall be reviewed and signed by the head of the department transmitting the invoice indicating it is approved for payment. In the case of a board or committee, the invoice shall be signed by the chair upon approval by the majority of its members.
(i) 
Upon receipt of invoices, the Office of the Town Accountant shall review them. An invoice that does not comply with the policies and procedures described herein shall be removed from the batch.
(j) 
The Office of the Town Accountant shall identify any invoice from a vendor or individual who owes money to the Town and is delinquent in those payments. That invoice shall be removed from the batch, and the vendor or individual shall be contacted and informed that payment is being withheld pending resolution of outstanding amounts owed to the Town.
(k) 
Upon completion of review by the Office of the Town Accountant, all batches shall be compiled under the cover of an accounts payable warrant for final review, approval, and signature by the Town Accountant and the Selectboard.
(l) 
Assigned copy of the accounts payable warrant shall be transmitted to the Treasurer/Collector. Upon receipt of the signed warrant the Treasurer/Collector shall issue checks and wire transfers (when applicable) to pay invoices included in the warrant. The Treasurer/Collector shall, within two days of issuance of checks and wire transfers, post the disbursements to the Treasurer's cashbook.
(m) 
Upon the Treasurer/Collector's notification to the Town Accountant that checks/wire transfers have been issued, the Town Accountant shall post the disbursements to the general ledger.
(2) 
Payroll. The following procedures shall be followed in processing payroll disbursements:
(a) 
Payroll shall be processed biweekly by the Office of the Treasurer/Collector.
(b) 
Biweekly payroll shall be based on time and attendance records reviewed and approved by the appropriate department head or Board or Committee Chair, and supported by provisions of existing collective bargaining agreements or the adopted annual compensation schedule for nonunion personnel.
(c) 
Employees shall be paid biweekly by direct deposit.
(d) 
For payroll purposes, the work week runs from Sunday through Saturday.
(e) 
The Town's Office of Treasurer/Collector shall be responsible for maintaining a database of active Town employees and all retirees, including salaries, pay rates, stipends, weekly work hours, earned leave time, benefit options, and withholdings. Any change to an employee's employment status, work hours, leave accrual rate, or compensation rate may only be made by the Town's Office of Treasurer/Collector based on a document signed by the Town Administrator.
(f) 
All data required to run a biweekly payroll must be transmitted to the Town's Office of Treasurer/Collector no later than 10:00 a.m. on the Monday following the end of the biweekly period. If Monday is a holiday, the deadline is 9:00 a.m. of the Friday preceding the end of the pay week, or as otherwise directed by the Treasurer/Collector.
(g) 
Upon satisfactory review of the payroll report by the Treasurer/Collector, the Office of the Town Accountant will generate a payroll warrant requiring the signature of the Selectboard.
(h) 
A signed copy of the payroll warrant shall be transmitted to the Treasurer/Collector. Upon receipt of the signed warrant the Treasurer/Collector shall issue checks and make direct deposits to pay employees included in the warrant. Each employee shall receive a pay stub that, at a minimum, shows gross and pay net of withholding and deductions for the week and year-to-date, accrued leave time, and leave time used for the week and year-to-date.
(i) 
The Treasurer/Collector shall, within two days of issuance of checks and direct deposits, post the disbursements to the Treasurer's cashbook.
(j) 
Upon the Treasurer/Collector's notification to the Town Accountant that checks/direct deposits have been issued, the Town Accountant shall post the disbursements to the general ledger.
(3) 
Emergency disbursements. If the need arises for a check to be issued to a vendor or an employee outside the regular accounts payable or payroll cycles, the head of the department, board or committee requesting the check shall submit the request in writing to the Town Administrator explaining the basis for the request including a statement of the extraordinary circumstances that require the check to be issued off-cycle. If the Town Administrator approves the request, the Town Accountant shall be instructed to generate an emergency warrant to authorize the Treasurer/Collector to make the payment. Payment shall not be issued by the Treasurer/Collector until the warrant is signed by the Selectboard.
(4) 
Petty cash. To mitigate any risks of illegal expenditures, violations of procurement laws, or instances of expenditures exceeding appropriations, no petty cash accounts are authorized.
(5) 
Prior fiscal year bills. Invoices presented for payment after the end of a fiscal year for goods or services ordered in the prior fiscal year for which no funds were encumbered shall constitute unpaid bills of the prior fiscal year. No payment shall be made until such bills are submitted to the next scheduled Town Meeting. Such submission shall seek approval to pay the invoice, pursuant to Massachusetts General Laws by a four-fifths vote of Annual Town Meeting and a nine-tenths vote of Special Town Meeting, and shall identify the funding source for the payment.
(6) 
Audit. All disbursement activity is subject to audit by Northfield's independent auditor.
F. 
References.
(1) 
Statutes.
MGL c. 4, § 7(26)
MGL c. 41, §§ 41, 41A, 41B, 41C, 42, 43, 52, 56
MGL c. 44, §§ 56, 58, 64
MGL c. 30B
MGL c. 66, §§ 6A through 8
(2) 
Commonwealth of Massachusetts, Office of the Secretary of State, Municipal Records Retention Schedule (https://www.sec.state.ma.us/arc/arcpdf/Municipal Retention Schedule 20200406.pdf).
(3) 
Town of Northfield Bylaw, Town Administrator - Responsibilities and Duties.
(4) 
Town of Northfield Employee Reimbursements Policy.
(5) 
Town of Northfield Procurement Policy.
(6) 
Town of Northfield Collective Bargaining Agreements.
A. 
Purpose.
(1) 
Despite best efforts to insure annual operating and capital budgets adopted at Town Meeting will provide funding adequate to cover anticipated costs, costs arising from emergency or unforeseen circumstances do arise that outstrip the capacity of current budgets to finance them. After the annual operating budget or capital budgets are adopted, the task then falls to periodically monitor actual expenditures in comparison to the adopted budget, and also revenues compared to estimates. The objective is to identify potential budgetary shortfalls or revenue deficits and give staff and elected and appointed officials the opportunity to identify preemptive actions to preclude them.
(2) 
Monthly reporting is the mechanism by which monitoring of the budget is done to identify rates of spending that may indicate expenditures may exceed budget or revenues will not meet estimates, thus requiring adjustments to spending or the budget.
(3) 
The purpose of this policy is to:
(a) 
Identify those with responsibility to generate, review and act on monthly reports.
(b) 
Describe alternative approaches to budget adjustments.
B. 
Applicability. This policy applies to the Town Administrator in managing the process of monthly reporting; the Town Accountant who manages the general ledger, the source of budget reports; department heads given their responsibility to manage their respective operating and capital budgets; the Finance Committee given its role in developing the annual budget; and the Selectboard in its role as the chief executive body of the Town.
C. 
Definitions. As used in this section, the following terms shall have the meanings indicated:
DEPARTMENTAL REVENUE
Those amounts collected by a department as a result of fees charged for the delivery of selected services, e.g., building permit or inspection fees.
ENTERPRISE FUND
A separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. Revenues and expenses of the service are segregated into a fund with financial statements separate from all other governmental activities.
GENERAL FUND
The primary fund used by a government entity to account for general government services. This fund is used to record all revenues and expenditures that are not associated with special-purpose funds, e.g., Enterprise Funds and Grant Funds. The activities being paid for through the General Fund constitute the core administrative and operational tasks of a municipality.
GENERAL LEDGER
A bookkeeping ledger that serves as a central repository for accounting data for an organization. Each account maintained by the organization is known as a ledger account, and the collection of all these accounts is known as the general ledger. The general ledger is the backbone of any accounting system which holds financial and nonfinancial data for the organization.
NONDEPARTMENTAL SPENDING
Expenditures that are Town-wide in nature and not attributable to any particular department. Examples are retirement (pension contributions), workers' compensation, unemployment insurance, health insurance, life insurance, Medicare, and property and liability insurance.
D. 
Policy. It shall be the policy of the Town as follows:
(1) 
Pursuant to MGL c. 41, § 58, administrative staff shall generate the following for distribution to department heads, the Selectboard and the Finance Committee:
(a) 
Monthly reports of actual spending fiscal year-to-date compared to budget for all departmental and nondepartmental spending by a fund, e.g., General and Enterprise, and for capital projects voted under special articles.
(b) 
Monthly reports of estimated departmental revenues, by account, for the General Fund, and any Enterprise Fund, as compared to annual estimates for each account.
(2) 
At a minimum, on a quarterly basis, and more frequently if circumstances call for it, the Town Administrator shall make a report to the Selectboard and the Finance Committee of spending fiscal year-to-date versus budget for operating and capital budgets, revenues versus estimates, the identification of potential budgetary shortfalls, and proposed alternatives to remedy such shortfalls.
E. 
Procedures.
(1) 
By the middle of the month following the previous month's end, the Town Accountant shall generate and distribute the following to each department, including the Town Administrator with responsibility for nondepartmental spending:
(a) 
A report of its operating budget, by line item, showing, at a minimum, the amount budgeted, expenditures year-to-date and the unexpended balance.
(b) 
A report of each capital project budget under the department's management showing, at a minimum, the amount budgeted, project expenditures-to-date and the unexpended balance.
(c) 
A report of departmental revenues by account showing, at a minimum, fiscal year estimates, amounts collected fiscal year-to-date, and revenues collected as a percentage of estimates.
(2) 
Concurrent with the distribution of reports to department heads, the Town Accountant shall distribute a consolidated monthly report to the Selectboard and the Finance Committee for all departments and capital projects.
(3) 
Upon receipt of monthly budget reports, department heads shall review such reports and analyze rates of spending year-to-date and make best effort to forecast future spending and the adequacy of the budget to fund total projected spending for the fiscal year in the case of operating budgets, and total project spending in the case of capital project budgets. In the case of departmental revenues, they shall make a best effort to forecast collections through fiscal year-end compared to estimates. Upon the identification of the potential inadequacy of operating or capital budgets, or potential revenue shortfalls, department heads shall timely notify the Town Administrator of such concerns. The Town Administrator shall timely perform an independent analysis of any problematic budget to corroborate a department head's concern.
(4) 
If the Town Administrator corroborates potential budgetary shortfalls, he/she shall make a report to the Selectboard and the Finance Committee of the likelihood of such shortfalls and propose solutions that include, but not be limited to, any and all of the following:
(a) 
Curtailing of spending to bring the budget in line with projections accompanied by a presentation of its effects on service delivery or project scope.
(b) 
A transfer from the Finance Committee Reserve Fund.
(c) 
A supplemental appropriation at a future Special Town Meeting.
(d) 
A year-end interdepartmental budgetary transfer pursuant to MGL c. 44, § 33B requiring approval by the Selectboard and the Finance Committee.
F. 
References.
(1) 
Statutes.
MGL c. 41, § 58