#1 2009-11-11 10:15:10
I was unable to watch the Selectmen's meeting on Tuesday night, but watched the clip here on this site. When Mr. Gaines spoke to the BOS about the upcoming event to raise money for the Social Services of the Council on Aging, it raised a question in my mind. Mr. Gaines did not mention that it was being sponsored by the Friends of the Elderly, which is a non profit organization that raises funds and supports the Council on Aging.
Is this event beign sponsored by the Friends of the Elderly or is this being sponsored by the Council on Aging? Does anyone know?
I'm not sure that a town department (Council on Aging and Social Services) can raise funds and then just use it for it's own benefit. I could be way off base, but if the Council on Aging raises funds, it would need to be deposited into a special fund set up by town meeting vote and if there is no such account, it would go to the general fund of the town, would it not, and then it could/would be used for any town expense.
This is why you have groups such as the Friends of the Elderly and Friends of the Library. As a non-profit, it can raise funds and use those funds for the purpose to which it was incorporated (to support the Library or support the Council on Aging).
I thought it was strange that Mr. Gaines did not say that this was an event sponsored by the Friends of the Elderly, but rather he said it was being organized by the Social Services of the Council on Aging. If the Social Services agency is a legal non-profit division of the Council on Aging, then I could understand that they are able to raise funds. But, if it is soley being sponsored by the "Council on Aging" , then my assumption is that any money raised would have to go into the general fund of the town.
Perhaps, I'm incorrect, but I don't remember voting at town meeting to set up any depository account for the benefit of funds being raised by the Social Services of the Council on Aging.
Years ago, town meeting established an account for the library to which special donations could be accepted and those moneys "earmarked" for the library. It happened because someone died and left a bequest to the library. From thence on donations made to the library can go into this special account should the donor specify that the donation go to "the town" and be used soley for libraray expenditure. This would be the same account to which Jane Donahue suggested that people send their private donations when Dick Wheeler was doing his paddlethon. (Perhaps the answer to infamous "town of Wareham account" referenced as a special account of MJ Pillsbury. Do your homework, Robt.)
However, I have not seen any speical account set up for the Council on Aging and that would have had to have been voted at town meeting. So if the Friends of the Elderly are not sponsoring this event, and the Council on Aging and Social Services is, where do they put the funds? It would have to go into the general budget account of the town, as best I understand it.
Just asking, not meant to start any controversy, but based on my knowledge of town govt., a question that I needed to ask. Is this event being sponsored by the Friends of the Elderly? If so, Larry Gaines should have given them credit for it. If not, then Larry Gaines might need to check to be sure that he is following the correct procedure for raising funds for the Council on Aging.
You can't just raise funds, cash the checks, and put money in a "kitty" to disperse for the needs of the elderly. I could very well be off base on this and that's fine with me. Hopefully so. But I wouldn't want this to come back and bite Larry Gaines if the town was audited by DOR. So to my original question, is this event being sponsored by the Friends of the Elderly? Or Council on Aging?
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#2 2009-11-11 10:35:59
These events are not sponsored by the friends of the elderly. The checks are made out to the COA.
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#3 2009-11-11 11:48:05
From what I understand fund raising of this type is legal. Exactly how the funds are overseen I'm not sure but generally whatever you have raised is made available to the group who raised it.
What is not legal is to use any funds budgeted to ones department, commission. etc to fund the fundraiser. At least that's what I've been told. Makes it very difficult to actually have a fundraiser.
Of course I'm not a lawyer. Not as in notalawyer but as in I am not in the legal profession so am just sharing what I understand to be the case.
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#4 2009-11-11 11:54:06
I'm glad that the Council on Aging can raise funds. However, it would seem to me that like the library,they would need to have a special depository account with the Town Accountant to which these funds are deposited. I don't ever remember establishing such an account via town meeting such as we had to do for the library. I guess that's where my concern is. Does this separate fund need to be established or can the Town Treasurer just do it?
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#5 2009-11-11 12:42:48
I think we did it at the April town meeting and I think it was in the "group" of articles at the beginning of the meeting where they all get voted on at once. I think it was for a revolving account. There was no discussion because it's a good thing to have in place. There were several COA articles if I recall correctly that were passed without discussion. People support the COA and what it does for our seniors.
Does anyone have a better memory than I??
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#6 2009-11-11 14:15:20
Molly is correct last April the town meeting voted that the monies in the revolving account would be turned over to the COA instead of the town. The COA could then decide what to do with that money. I would assume the money made from fund raising would go into that account. I’m not sure people realize how much money goes into this account.
All of the money from the social day center goes into that account. Someone told last year that was about $40,000. The social day care charges $35.00 a day. I’m not sure how many people attend I would guess between 6-10., four days a week, you do the math. When Debbie Bell was the director of the COA she wrote and received money from grants that paid for almost all of the staff at the COA. Because Marcia has been unable to get any grants. I have been told that she is using the money from the social day center and the revolving account to pay for the staff at the COA. If she isn’t using the money to pay for the staff where is that money going? Think of much good that money could do if it were used for out seniors that are in need.
Mature had a good question where can the public go to find out how much money is in the revolving account, where does the money come from, and what is the money being spent on.
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#7 2009-11-11 15:44:57
Chapter 44: Section 53E1/2. Revolving funds
Section 53E1/2. Notwithstanding the provisions of section fifty-three, a city or town may annually authorize the use of one or more revolving funds by one or more municipal agency, board, department or office which shall be accounted for separately from all other monies in such city or town and to which shall be credited only the departmental receipts received in connection with the programs supported by such revolving fund. Expenditures may be made from such revolving fund without further appropriation, subject to the provisions of this section; provided, however, that expenditures shall not be made or liabilities incurred from any such revolving fund in excess of the balance of the fund nor in excess of the total authorized expenditures from such fund, nor shall any expenditures be made unless approved in accordance with sections forty-one, forty-two, fifty-two and fifty-six of chapter forty-one.
Interest earned on any revolving fund balance shall be treated as general fund revenue of the city or town. No revolving fund may be established pursuant to this section for receipts of a municipal water or sewer department or of a municipal hospital. No such revolving fund may be established if the aggregate limit of all revolving funds authorized under this section exceeds ten percent of the amount raised by taxation by the city or town in the most recent fiscal year for which a tax rate has been certified under section twenty-three of chapter fifty-nine. No revolving fund expenditures shall be made for the purpose of paying any wages or salaries for full time employees unless such revolving fund is also charged for the costs of fringe benefits associated with the wages or salaries so paid; provided, however, that such prohibition shall not apply to wages or salaries paid to full or part-time employees who are employed as drivers providing transportation for public school students; provided further, that only that portion of a revolving fund which is attributable to transportation fees may be used to pay such wages or salaries and provided, further, that any such wages or salaries so paid shall be reported in the budget submitted for the next fiscal year.
A revolving fund established under the provisions of this section shall be by vote of the annual town meeting in a town, upon recommendation of the board of selectmen, and by vote of the city council in a city, upon recommendation of the mayor or city manager, in Plan E cities, and in any other city or town by vote of the legislative body upon the recommendation of the chief administrative or executive officer. Such authorization shall be made annually prior to each respective fiscal year; provided, however, that each authorization for a revolving fund shall specify: (1) the programs and purposes for which the revolving fund may be expended; (2) the departmental receipts which shall be credited to the revolving fund; (3) the board, department or officer authorized to expend from such fund; (4) a limit on the total amount which may be expended from such fund in the ensuing fiscal year; and, provided, further, that no board, department or officer shall be authorized to expend in any one fiscal year from all revolving funds under its direct control more than one percent of the amount raised by taxation by the city or town in the most recent fiscal year for which a tax rate has been certified under section twenty-three of chapter fifty-nine. Notwithstanding the provisions of this section, whenever, during the course of any fiscal year, any new revenue source becomes available for the establishment of a revolving fund under this section, such a fund may be established in accordance with this section upon certification by the city auditor, town accountant, or other officer having similar duties, that the revenue source was not used in computing the most recent tax levy.
In any fiscal year the limit on the amount that may be spent from a revolving fund may be increased with the approval of the city council and mayor in a city, or with the approval of the selectmen and finance committee, if any, in a town; provided, however, that the one percent limit established by clause (4) of the third paragraph is not exceeded.
The board, department or officer having charge of such revolving fund shall report to the annual town meeting or to the city council and the board of selectmen, the mayor of a city or city manager in a Plan E city or in any other city or town to the legislative body and the chief administrative or executive officer, the total amount of receipts and expenditures for each revolving fund under its control for the prior fiscal year and for the current fiscal year through December thirty-first, or such later date as the town meeting or city council may, by vote determine, and the amount of any increases in spending authority granted during the prior and current fiscal years, together with such other information as the town meeting or city council may by vote require.
At the close of a fiscal year in which a revolving fund is not reauthorized for the following year, or in which a city or town changes the purposes for which money in a revolving fund may be spent in the following year, the balance in the fund at the end of the fiscal year shall revert to surplus revenue unless the annual town meeting or the city council and mayor or city manager in a Plan E city and in any other city or town the legislative body vote to transfer such balance to another revolving fund established under this section.
The director of accounts may issue guidelines further regulating revolving funds established under this section.
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#8 2009-11-11 15:56:49
"to which shall be credited only the departmental receipts received in connection with the programs supported by such revolving fund. "
Should we then understand that if this revolving fund was voted for the purpose of Social Day Care, then all money going into this account can only be from social day care receipts? And that the only expenditures made from this account can be used to support social day care?
To answer Marny, you can submit a request for information to the town accountants office.
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