Duties and Responsibilities of Town Treasurers in Massachusetts

Town treasurers in Massachusetts have specific duties such as giving an annual bond for faithful performance, receiving and handling town money, providing reports, being custodians of trust funds, and more. Failure to meet these responsibilities can lead to vacancy in office. The treasurer must follow regulations regarding the handling and disbursement of public funds.

• Town Treasurers
• Massachusetts
• Duties
• Bond Requirements
• Financial Responsibilities

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1. Cash Receipts and Cash Book MCTA Staff School January 17, 2024 Georgia Colivas Treasurer/Collector Town of Medfield Chris Pilla Treasurer Town of Milford

2. Chapter 41 Section 35 Every town treasurer shall give bond annually for the faithful performance of his duties in a form approved by the commissioner of revenue and in such sum, not less than the amount established by said commissioner, as shall be fixed by the selectmen or the mayor and aldermen, and if he fails to give such bond within ten days after his election or appointment, or if within ten days after the expiration of said bond or any renewal of said bond he fails to file a renewal thereof, the selectmen or the mayor and aldermen shall declare the office vacant and the vacancy shall be filled in the manner prescribed by section forty or sixty-one A, as the case may be. He shall receive and take charge of all money belonging to the town, and pay over and account for the same according to the order of the town or of its authorized officers. No other person shall pay any bill of any department; provided, however, this provision shall not prohibit the treasurer from paying such bill by the use of bank treasurer's or cashier's check. He shall have the authority given to an auditor by section fifty-one, and shall annually render a true account of all his receipts and disbursements and a report of his official acts. The bond required herein shall cover the duties of the treasurer with respect to trust funds and funds of retirement systems which are in his custody by virtue of his office, and any such funds, for the purposes of said bond, shall be deemed to be public funds.

3. Instructions on Minimum Bond Amount

5. Chapter 41 Section 46 The Treasurer shall be the custodian of all funds and securities of such trust funds, shall invest and reinvest them and expend therefrom moneys as directed by the commissioners. The Treasurer shall furnish a bond satisfactory to them for the faithful performance of his duties.

6. Chapter 44 Section 53 All moneys received by any city, town or district officer or department, except as otherwise provided by special acts and except fees provided for by statute, shall be paid by such officers or department upon their receipt into the city, town or district treasury. Any sums so paid into the city, town or district treasury shall not later be used by such officer or department without specific appropriation thereof; provided, however, that (1) sums allotted by the commonwealth or a county to cities or towns for highway purposes and sums allotted by the commonwealth to cities, towns or districts for water pollution control purposes shall be available therefor without specific appropriation, but shall be used only for the purposes for which the allotment is made or to meet temporary loans issued in anticipation of such allotment as provided in section six or six A, (2) sums not in excess of twenty thousand dollars recovered under the terms of fire or physical damage insurance policy and sums not in excess of twenty thousand dollars received in restitution for damage done to such city, town or district property may be used by the officer or department having control of the city, town or district property for the restoration or replacement of such property without specific appropriation and (3) sums recovered from pupils in the public schools for loss of school books or paid by pupils for materials used in the industrial arts projects may be used by the school committee for the replacement of such books or materials without specific appropriation.

7. Cash Receipts Departmental turnovers, including collector receipts Online collections (permits, beach passes, school lunch, etc.) State and federal receipts Grants Bond/Note/BAN proceeds Payroll withholdings NSF and returned checks Tailings Trust funds/cemetery

8. Sample Departmental Turnover

9. Departmental turnovers should include: Name of Department making turnover Date of turnover List of payments made, description, ledger account number to be posted, and amounts Total of all items Itemization of cash and checks Total dollar amount of turnover and for what period Signature of department head or representative Signature of Treasurer or representative

10. Turnovers should be counted before the department head or representative leaves your office Individual cash and check totals should equal what is on the turnover Turnovers that are incorrect should be changed only by the department Departments should make their turnovers at least weekly or when the amount is large Sample bylaw: Any department collecting funds on behalf of the Town shall transfer those funds directly to the Town Treasurer on a weekly basis. Any department collecting more than one thousand dollars ($1,000.00) in any period less than one week shall, upon reaching that amount, transfer those funds to the Treasurer on a daily basis.

11. Scenarios

12. Collector Turnover Must make turnover to Treasurer at least weekly Collector can use a standardized form or computer printout of receipts Collector receipts must be recorded by year and type

13. Who gets turnover sheets? Treasurer s office Town Accountant/City Auditor s office Department Department may use an internal numbering system to track their own receipts Departments should turn over ALL receipts no department should wait to turn over funds until they have $10.00 in quarters to roll or $25.00 in dollar bills to band

14. Cashbook The cashbook is a record of all funds received by the municipality The cashbook is a permanent record The cashbook should show a breakdown of all receipts, disbursements, and cash balances

15. Sample Cashbook Town of Milford

16. Why is the Cashbook Important? The Treasurer needs to maintain control over all cash for budgeting and expense purposes. Cash needs to be available for payable and payroll warrants, debt service, school assessments, etc. Bank reconciliations need to be done on a timely basis, preferably shortly after the end of each month. Daily reconciliations are useful for depository and checking accounts to correct banking errors

17. Bank Reconciliation The Treasurer s office is required to reconcile all bank accounts. Monthly reconciliations should be provided to the Town Accountant/City Auditor. The Accountant/Auditor should balance to the Treasurer.

18. Reconciliation TREASURER'S CASH RECONCILIATION August 31, 2019 BEGINNING BALANCE 8/1/2019 820,455.36 632,166.04 256,109.65 90,244.76 255,715.49 3,187,967.48 ENDING BALANCE 8/31/2019 933,931.04 1,117,530.06 ------------------------------------------------ August RECEIPTS 113,475.68 228,300.05 954.32 179.56 August WARRANTS TRANSFERS IN TRANSFERS OUT per Bank statement 933,931.04 1,117,530.06 Difference/ Outstanding DESCRIPTION TD Bank Savers Bank Savers Bank MMDT Blue Hills Bank Bartholomew & Co., Inc. Country Bank for Savings Country Bank for Savings Unibank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings UniBank for Savings Country Bank for Savings People's Bank Unibank for Savings Unibank for Savings Bartholomew & Co Easthampton Savings UniBank Escrows 791028871 UniBank UniBank UniBank UniBank UniBank UniBank UniBank Unibank UniBank UniBank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Unibank Ambulance - ComStar Treasurer Deposit Account 15-month CD Treasurer Account 15 month CD Master Trust Funds Sewer Betterment & Privilege Fee Sewer Betterment & Privilege Fee 7 day CD Vendor payables General Fund Account PAYROLL CHECKING Sale of Cemetery Lots Public Access Education Law Enf. Acct - Federal Law Enf.Drug Account On-Line payments Deputy Collector On-Line Performance Bond Account Rehab Recapture Clerk Online online permits General Fund Lockbox Cultural Council EV Charging Station OPEB Trust General Fund Lockbox Nexamp Escrow A & J Loconto Ceppetelli Escrow Fay Mtn Farm First City Development Corp LSE Aquila, LLC Hilltop Solar LLC Nature's Classroom Webster 5 Cent Savings SolarFlair Sunset City Sound North Wing Split Borrego - Gunter Solar NexampGriffin NexampSampson HealthWise TJA Solar Elias Hanna Pegasus Motors Nexamp/Griffin Road #2 Curtis Hill Estates Old Spencer Rd Zero Point Development Robinson Prop Hldngs Rain for Rent Otis Land Management Self Storage St Josephs Solar (landscaping) Brookfield Road Solar (Infinity) Zero Point Colburn Road OLM LLC 100 Sturbridge Rd Valley Green Grow/VGG Four Score LLC Zero Point Definitive Plan Lambs Farm Estates Tree House Brewing Freedom Energy Systems All Granite Solar 508 International Property Solutions Hammond Rd Special Permit Ted's Modifications VGG BETA Lunar Meadows Four Score Site Plan North Sturbridge Rd Solar Pecore Plumbing & Heating Site Plan Gunter LLC Boucher Dr Gunter LLC Horne Homestead Rd Carpenter Hill Rd. Solar (Borrego) MTD Micromolding HVAC Control TJA Solar Definitive Plan LNG Project VGG Definitive Plan Osgood/Fitzgerald Definitive Plan Masonic Woods Way Subdivision Charlton Orchards Definitive Plan GAIR LLC Jennings Rd Ext Charlton Optical Site Plan East End LLC Charlton Realty 299 Sturbridge Rd Doug Monson - 157 Worcester Road Kid Power 221 Sturbridge Rd Green Gold Landscaping 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 257,063.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 257,063.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 90,424.32 255,715.49 3,187,967.48 90,424.32 255,715.49 3,187,967.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 207.06 4,321,020.07 4,329,353.27 1,796,481.21 801,641.86 8,540.26 5,138,542.09 804,385.77 4,892,786.38 232,951.86 17,542.59 18,363.89 -804,385.77 o/s 0.00 -82,951.86 o/s 0.00 0.00 0.00 0.00 7,648.91 dit 282.80 dit 0.00 0.00 60.00 dit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,665,286.62 100,000.00 17,542.59 18,363.89 569,560.64 49.67 11.92 12.48 0.00 4,892,786.38 150,000.00 17,542.59 18,363.89 751,641.86 49.67 11.92 12.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.01 0.00 0.01 307,207.42 108,967.43 95,000.00 147,009.87 4,316.34 9,016.00 1,099,962.33 3,906,025.60 131,043.03 10,073.40 2,032.43 81.16 161.48 453.15 326.97 242,345.46 425,000.00 100,000.00 1,032.43 13,250.45 19,040.83 96,000.00 147,091.03 4,477.82 9,466.00 1,100,289.30 3,648,277.73 5,492.62 5,601.54 18,758.03 96,000.00 147,091.03 4,417.82 9,466.00 1,100,289.30 3,648,277.73 5,492.62 0.00 0.00 3.15 0.00 500,093.33 2,055.00 0.00 0.00 0.66 68.42 0.00 7,546.96 0.00 0.00 93.33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 68.42 68.42 847,268.78 2,144,000.84 22,274.83 847,268.78 1,900,942.22 22,289.96 847,268.78 1,900,942.22 22,289.96 506,848.05 15.13 750,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.29 5.93 2.48 4.63 4.71 5.91 1.45 1.38 0.98 0.13 0.46 16.89 14.79 0.10 1.14 1.06 0.00 0.61 0.00 0.29 0.54 0.03 1.37 0.20 0.00 2.78 0.00 0.60 0.00 0.00 431.18 8,723.47 3,653.03 6,816.35 6,926.06 8,701.36 2,128.18 2,034.41 1,446.91 185.67 683.84 24,862.24 21,767.86 149.13 1,681.01 1,562.32 431.47 8,729.40 3,655.51 6,820.98 6,930.77 8,707.27 2,129.63 2,035.79 1,447.89 185.80 684.30 24,879.13 21,782.65 149.23 1,682.15 1,563.38 431.47 8,729.40 3,655.51 6,820.98 6,930.77 8,707.27 2,129.63 2,035.79 1,447.89 185.80 684.30 24,879.13 21,782.65 149.23 1,682.15 1,563.38 0.00 0.00 0.00 897.59 0.00 466.71 816.30 51.29 2,020.02 291.91 0.00 4,092.93 1.84 883.34 336.95 1,055.95 5,393.56 1,156.08 1,283.99 3,630.39 1,058.82 40.46 11,061.16 2,158.12 4,684.14 85.78 37.34 1,658.72 1,700.21 898.20 0.00 116.80 620.19 51.32 2,021.39 292.11 0.00 4,095.71 1.84 883.94 845.56 1,056.67 3,537.10 1,156.87 2,812.39 3,632.86 1,059.54 40.49 5,564.94 1,781.31 4,687.32 85.84 37.37 1,659.85 1,701.37 0.00 1,478.17 16.55 437.08 0.00 175.65 1,899.59 586.48 0.00 10,247.09 718.03 746.94 2,004.08 36,073.36 4,686.76 1,428.63 898.20 0.00 116.80 620.19 51.32 2,021.39 292.11 0.00 4,095.71 1.84 883.94 845.56 1,056.67 3,537.10 1,156.87 2,812.39 3,632.86 1,059.54 40.49 5,564.94 1,781.31 4,687.32 85.84 37.34 1,659.85 1,701.37 0.00 1,478.17 16.55 437.08 0.00 175.65 1,899.59 586.48 0.00 10,247.09 718.03 746.94 2,004.08 36,073.36 4,686.76 1,428.63 350.20 196.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 492.00 0.00 1,860.00 0.00 472.95 0.00 0.00 0.00 5,500.00 378.25 0.00 0.00 0.00 0.00 0.00 0.00 378.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 148.00 0.00 0.00 0.00 0.00 0.00 1,000.61 0.72 3.54 0.79 2,001.35 2.47 0.72 0.03 3.78 1.44 3.18 0.06 0.03 1.13 1.16 0.00 1.24 0.01 0.30 0.00 0.12 1.29 0.40 0.00 6.96 0.58 0.51 1.36 24.49 3.18 1,428.63 0.00 1,855.18 16.54 436.78 0.00 175.53 1,898.30 586.08 0.00 10,240.13 865.45 746.43 2,002.72 36,048.87 4,683.58 0.00 TOTAL 21,931,073.54 1,810,759.55 5,072,661.93 7,192,180.60 7,192,180.60 18,669,171.16 19,548,517.05 -879,345.89 OPEB Trust Funds 847,268.78 3,187,967.48 4,035,236.26 Escrows 213,244.70 General Fund 14,273,599.16 Other 147,091.04 statements plus outstanding & dit 18,669,171.16 Subtotal 14,633,934.90 Grand Total 18,669,171.16

19. Annual Cash Reporting The balance in each bank account should be reported as of December 31 in the municipality s annual report. The Treasurer is required to report to the Department of Revenue annually the June 30 cash balances through Gateway Treasurer s Year-End Cash Report Summary and Cash Reconciliation Report Failure to file will delay both certification of Free Cash and the ability of the municipality to set a tax rate

20. Annual Report REPORT OF THE TOWN TREASURER To the Honorable Board of Selectmen and the Citizens of the Town of Charlton: I hereby submit my report for the year ending December 31, 2018 Account Balances: General Fund bank balances TD Bank Savers Bank MMDT Blue Hills Bank UniBank for Savings Easthampton Savings People s Bank Country Bank for Savings $ 1,597,177.85 Trust and Agency Funds Stabilization Fund Fire Truck Stabilization Fund Public Access Education Law Enforcement Drug Trust Federal Law Enforcement Drug Trust Sgt. RW Danforth Domestic Violence Fund George McKinstry Building Fund Cultural Council Workers Compensation Trust Phillips Old Home Day Recreation and Ellis Fund Performance Bond Account Recapture Account Pilot Payment Millennium Funds Planning Board Sureties Library Trust Funds Scholarship Funds Health Board Nursing Funds Cemetery Funds Sewer Capital Improvement Fund OPEB Trust Fund Respectfully submitted, Joanne L. Savignac, CMMC, CMMT Treasurer /Collector $ 526,306.68 $ 1,485,251.39 $ 91,386.14 $ 252,918.84 $ 3,277,939.17 $ 1,668,549.26 $ 2,416,976.05 $11,316,505.38 $1,259,769.78 $ 1,896.94 $ 107,930.61 $ 9,819.31 $ 3,708.04 $ 7,048.56 $ 1,994.71 $ 3,206.54 $ 31,855.51 $ 2,531.86 $ 10,384.79 $ 89,000.00 $ 146,456.05 $ 183,350.69 $ 196,973.35 $ 61,769.00 $ 55,412.47 $ 41,485.61 $ 348,085.32 $1,022,571.29 $ 721,892.03

21. Treasurers Year-End Cash Report Massachusetts Department of Revenue Division of Local Services BUREAU OF ACCOUNTS - AUTOMATED TREASURER'S YEAR-END CASH REPORT CHARLTON , for the Year Ending Jun 30, 2019 (City, Town, County, District) $ - PART I: A. Cash and checks in office B. Non - Interest Bearing Checking Accounts Collat Financial eral'd Institution Y or N Purpose Interest Rate Balance Sub - Total $0.00 C. Interest Bearing Checking Accounts Collat Financial eral'd Institution Y or N N TD Bank N Country Bank for Savings N Unibank for Savings N Country Bank for Savings N Country Bank for Savings N Unibank for Savings N Unibank for Savings N Easthampton Savings Bank N Unibank for Savings N Unibank for Savings N Unibank for Savings N MMDT Purpose Interest Rate Balance Sub - Total Ambulance Water Enterprise Law Enforcement Drug Account Sewer Betterment & Privilege Fee General Fund Deputy Collector Online Online Payments General Fund Payroll Checking Vendor Payables Planning Board Escrows General Fund N/A 731,373.52 0.35% 1.71% N/A 1.00% 1.75% 1.75% 0.20% 1.75% 1.75% 1.75% 0.00 2.86 0.00 1,099,635.45 87,544.23 22,860.18 1,459,773.07 100,000.00 0.00 214,267.57 90,052.69 $3,805,509.57 D. Liquid Investments Collat eral'd Y or N N Unibank for Savings N Savers Bank N Unibank for Savings N Unibank for Savings N Unibank for Savings N Unibank for Savings N Unibank for Savings N Unibank for Savings N Unibank for Savings N People's Bank N Country Bank for Savings Financial Institution Purpose Interest Rate Balance Sub - Total Rehab Recapture General Fund Performance Bonds General Fund Law Enforcement - Federal Permits Online Clerk Online Sale of Cemetery Lots Public Access Education Lockbox Sewer Enterprise Fund 1.75% 0.25% 1.75% 1.75% 1.71% 1.71% 1.71% 1.75% 1.75% 0.25% N/A 146,928.76 849,151.22 94,500.00 6,524,518.27 1.06 8,641.00 4,179.90 17,542.59 18,363.89 3,738,454.27 0.00 $11,402,280.96 Note: Attach addititional sheets if needed. E. Term Investments Collat eral'd Y or N N N Financial Institution Purpose Interest Rate Balance Sub - Total Savers Bank Blue Hills Bank 15-month CD 15-month CD 2.25% 2.25% 256,109.65 255,715.49 Sub - Total $511,825.14 U.S. Treasury Bills Repurchase Agreements Other Sub - Total Sec. E Total $0.00 $511,825.14 F. Trust Funds Collat eral'd Y or N N N Financial Institution Purpose Interest Rate Balance Sub - Total Bartholomew and Company Bartholomew and Company Master Trust Funds OPEB Trust 3,189,119.25 847,268.78 $4,036,388.03 Part I Total: All Cash and Investments $ 19,756,003.70

22. Resources https://www.masscta.com/ Searchable Treasurer s manuals available online Division of Local Services https://www.mass.gov/orgs/division-of-local- services All municipal information, financial tools and policy guidelines, guidance with operations, and a link to Massachusetts General Laws