The draft Federal Compliance Audit for the Town of Rangeley was provided to the Board of Selectmen for their April 20, 2021 meeting. Certified Public Accountants RHR Smith & Company were hired to conduct the audit. RHR Smith & Co. representative Levi Robinson was present via Zoom to provide an overview and answer questions.
Mr. Robinson noted that Rangeley’s General Fund Balance was up approximately $200,000.00 and that the Fund Balance contained at least two months operating expenses which is compliant with the Town’s Fund Balance Policy. Rangeley’s sufficient unassigned fund balance and significant reserve accounts indicate good financial health. If the Fund Balance is kept at two months of operating expenses, $275,000.00 would be available to use to offset taxes.
RHR Smith & Co. offered suggestions for accounting improvements including reconciling accounts monthly and processing the Snowmobile Grant differently. They also noted their understanding that some airport project expenditure money would not be coming back to the Town.
The status of the airport projects financial accounting generated considerable discussion. The Airport Runway Extension Project total cost was $12,223,074.63. The Town of Rangeley was awarded an Omnibus Grant to cover 100% of the $12,216,582.63 eligible project costs leaving $6,492.00 ineligible for funding.
The construction started in October 2018 and a ribbon cutting ceremony was held in the fall of 2019. There was a relatively short “punch list” of construction items still needing attention at the time of the ribbon cutting ceremony. As the construction of the runway extension progressed from October 2018, five change orders totaling $746,066.63 were issued to Sargent Corporation, the projects contractor.
The Town of Rangeley utilized the services of Dubois and King (D and K) as the Airport project’s engineering consultant. Guy Rouelle and Shane McDougal were the D and K employees assigned to the Rangeley project. The project overseers for the Town of Rangeley were Airport Manager Rebekah Carmichael and Chairman of the Board of Selectmen Steve Philbrick. The involvement of these participants included consent for the change orders at construction meetings.
The FAA recently informed Rangeley’s Treasurer and the Town Manager that the $746,066.63 change order total would not be eligible for grant funding. The specified date of September 20, 2020 for amending the 100% funded grant passed before the change orders were submitted. The Treasurer stated at the Selectmen’s meeting that it was the Engineering Consultant’s responsibility to file the change orders with the FAA. Town Manager Joe Roach is researching the situation and expects to have more information for the Selectmen at their next meeting.
In other business the Selectmen agreed to add a Warrant Article asking voters if they will accept the donation of six cemetery lots from Jane Dill. Jane Dill’s family have had a summer place at Moxy Ledge on Rangeley Lake spanning eight generations.
The Selectmen also authorized the Town Manager to send out contract service Requests For Proposals (RFPs) for a Human Resource Consultant, Economic Development Consultant and Assessing.
The next Board of Selectmen’s meeting is scheduled for May 3, 2021 at 6:00pm.
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