The Town Council finds that it is in the interest
of the residents of the Town of Johnston (hereinafter called the “Town”)
to establish a Johnston Financial Review Board (“Board”)
for the purpose of monitoring the financial operations of the Town
including those of the School Department. Notwithstanding any other
provision of this article, this Board is considered to be strictly
advisory in nature.
The Johnston Financial Review Board shall have
the following powers and duties:
A. To monitor the implementation of the recommendations
contained in the Report of the Johnston Financial Review Commission
issued May 8, 1998. This shall include:
(1) Ascertaining that appropriate timetables have been
established by the Town for implementing each of the Commission's
recommendations, provided that all recommendations be implemented
by June 30, 1999.
(2) Ascertaining that the task of implementing each recommendation
is assigned to the appropriate responsible individual;
(3) Monitoring the progress of each recommendation during
the implementation period;
(4) Reporting to the Auditor General monthly on the Town's
progress, including any matters which may delay implementation.
B. To analyze all factors affecting the Town's ongoing
financial condition and propose corrective action to the Mayor and
Town Council as needed to help remedy such condition.
C. To obtain reports and data from the Town, in order
to substantiate revenue estimates to fund the Town's fiscal year operating
budgets and monitor collection of those revenues.
D. To review expenditures including personnel costs to
ascertain compliance with the adopted budget.
E. To review and advise the Town on the annual operating
and capital budgets including the School Departments request. This
review by the Board is not a prerequisite or condition to adoption
of the Town budget.
F. To review and advise the Town on any single expenditure
of $5,000 or more, any collective bargaining agreement or other contract,
or the employment of any person or engagement of any consultant, after
determining its fiscal impact on the Town. The Board shall be given
written notice of any proposed expenditure or action of these types,
and shall have 15 days to review the proposal and comment thereon
prior to an expenditure being made or funds being encumbered or otherwise
committed. This provision shall not apply to expenditures made necessary
by emergencies that directly threaten public health or safety. Emergency
expenditures, encumbrances or commitments shall be reported to the
Board in writing, however, together with information documenting the
emergency, within five days after the occurrence of the emergency.
This subsection is not intended to require approval of the Board for
expenditure of funds, execution of contract or engagement of individuals
or consultants.
G. To review and advise the Town on any action that would
incur short- or long-term debt by the Town through the issuance of
bonds or notes, or by any other means. The Board shall be given written
notice of any proposed borrowing and shall provide an advisory opinion
within 60 days of receipt of such notice. This subsection is not intended
to require approval of the Board for issuance of debt.
H. To require the Finance Director to promptly deliver
monthly budget to actual reports for revenues and expenditures; to
require and prescribe the form of any other financial reports to be
made by the Finance Director, Tax Collector, and any department director
or other officer or employee of the Town to keep the Board continually
and promptly informed of the Town's financial condition.
I. To consult with the Town's auditors during the performance
of each annual audit, receive and review the annual audit report,
and monitor the Town's compliance with developing a corrective action
plan for all management recommendations.
J. To review the Town's operations as necessary and make
recommendations where applicable to improve productivity and/or reduce
costs. In this regard the Board may work with the Town in establishing
cost review committees comprised of Town employees and/or interested
Town citizens to help find and report cost savings measures to the
Board. The cost review committees shall serve without salary as per
diem allowance and shall have no enforcement powers to cut costs.
K. To issue a written report quarterly to the Mayor,
Town Council, State Auditor General and State Director of Administration
on the Town's progress in implementing and retaining effective cash
management and financial and budgetary controls. In addition, the
aforementioned officials should be notified immediately if it appears
the Town is in danger of incurring additional deficits, budgetary
problems, or cash flow problems which will prevent Johnston from meeting
its obligations as they come due.