DUTIES AND RESPONSIBILITIES OF THE TREASURER



DUTIES AND RESPONSIBILITIES OF THE TREASURER

Duties and responsibilities of a municipal treasurer are defined by statute. 24 VSA 1571

1. Responsible for accounting for and handling of all town money

2. Collect current taxes if a separate collector of taxes is not elected

3. Collect receipts for water and sewer

4. Collects all other general receipts not otherwise designated by statute

5. Invests all Town funds except for trust funds

6. Pays Town expenses after warrants or orders are approved

7. Maintains records of all receipts (paid to town and school district) and all monies paid out for the town and school district. The account records must be kept in such a way that they are “open to the inspection of persons interested.” 24 VSA 1571(a)

May also be responsible for:

1. Preparation of annual proposed budget

2. Preparation of report of actual cash expenditures

3. Short-term borrowing

4. Application for/use of gifts and grants

5. Investment decisions

Miscellaneous

1. Appoint an Assistant – If don’t appoint an Assistant, Selectboard may direct Treasurer to do so by written request.

2. Relationships with other Town Officers

a. Selectboard – As an elected official, the Selectboard does not have authority over the Treasurer. As long as the treasurer maintains the financial records of the Town in a lawful, clear and accurate manner according to accounting standards, the Selectboard does not have the power to require the Treasurer to conform to the board’s ideas or methods of record keeping. (24 VSA 872 Annotation 13D).

The Selectboard has the authority to hire a bookkeeper and if so that individual usually takes over routine accounting tasks performed by the treasurer (ie payroll, preparing & mailing tax bills, posting to journals/ledgers, paying bills (accounts payable).

If your town has a manager form of government, the manager will have many of the responsibilities of the selectboard with regard to interacting with the treasurer.

b. Tax Collector – The Treasurer can also be the Tax collector of current taxes if so voted by the Town. If the town votes to have the Treasurer as Tax Collector, they must vote that each year. If town has a Town Manager, voters may decide to have him or her act as tax collector. In that case once it is voted to have TM as tax collector that remains until a vote is taken to change that.

c. Delinquent Tax Collector – The Treasurer can also be voted the Delinquent Tax Collector. In which case within 15 days of the date or dates on which taxes become delinquent, the treasurer must issue a warrant for the amount of unpaid taxes. NOTE: If Treasurer is not the Delinquent Tax Collector, he/she cannot issue the warrant (32 VSA § 4791 Annotation (2)

d. Town Clerk – Same person can be both Clerk and Treasurer but must run for each office separately.

e. Town Auditors – Treasurer must settle with the auditors 5 days prior to the annual town meeting (24VSA § 992 & § 1578) in case the Treasurer is not reelected. If Treasurer refuses to do so he/she will not be eligible for reelection. This would be Willful neglect which can result in a $1,000 fine, a year in prison or both (13VSA § 3006)

f. Cemetery Commissioners – Selectboard handles town cemetery matters unless voters decide to have a cemetery commission. Treasurer is responsible for accounting for Cemetery Commission funds. More information see Digging Deep Publication by SOS office

g. School District Treasurers – The town treasurer is also the town school district treasurer unless the district elects its own treasurer. The accounting for school funds must be kept separate from the town’s funds. The school treasurer “shall keep the financial records of cash receipts and disbursements, and shall make those records available to the school board or supervisory union board when requested to so.” School treasurer deposits all checks and pays out monies drawn on order of the board. The school treasurer may invest and reinvest all monies received by the district with the approval of the school board directors 16 VSA 426(c). The town collects property taxes for both the town and school district. Within 20 days of having received school tax money, the town must transfer the money received to the school district’s account.

h. Board of Abatement – Treasurer is a member of the Board of Abatement. 24 VSA 1533.

Internal Controls

Internal Control is a process for which management is ultimately responsible for.

- Management needs to believe that internal control is important, and should lead by example. Encourage (maybe even require) attendance at education sessions.

- Regularly assess potential risks

--That all assets and liabilities exist and all transactions actually occurred.

--All transactions that occurred have been recorded and that they were recorded in the correct fund and financial period.

- Adopt financial policies

- Written procedures

- Have segregation of duties

- Authorization of transactions

- Have good records

- Reconcile accounts and provide timely financial statements

- Cash/checks and records should be kept in a secure location

- Document policies and procedures

- Make deposits (especially cash) in a timely fashion

- Financial Management Questionnaire – State Auditor’s website – must be completed by Treasurer and reviewed by the Select Board annually.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download