Finance
The Finance Department plays a crucial role in managing the financial operations and resources of Freemansburg Borough. The duties of the Financial Department are essential to maintaining fiscal responsibility, transparency, and ensuring that the Borough can deliver services to its residents effectively.
Here's an overview of the key duties of the Borough’s Finance Department:
Budget Preparation and Management
Budget Development
The Department is responsible for preparing the annual budget at the request of Council for the Borough. This involves projecting revenues (e.g., taxes, fees, state funding) and determining expenditures for various departments and services, such as public safety, public works, parks, and administration.
Monitoring and Adjusting
After the budget is approved by Council, the Finance Department monitors the spending throughout the year to ensure that the Borough stays within budget. If needed, adjustments to the budget may be proposed and made.
Accounting and Financial Reporting
Bookkeeping
The Finance Department maintains accurate records of all financial transactions, including income (taxes, grants, etc.) and expenses (salaries, supplies, public services, etc.).
Financial Statements
The Finance Department prepares financial statements, including balance sheets, income statements, and cash flow reports. These are essential for understanding the financial health of the Borough and are typically reviewed by Council and external auditors.
Monthly and Annual Reports
The Finance Department prepares regular reports, such as monthly or quarterly financial summaries, are prepared to track revenues and expenditures, which are often presented to Council at their monthly meetings.
Payroll and Employee Benefits
Payroll Processing
The Finance Department ensures that employees of the Borough are paid accurately and on time. This includes calculating salaries, overtime, and deductions for taxes, insurance, and retirement contributions.
Employee Benefits Administration
The Finance Department also manages the benefits programs for Borough employees, such as health insurance, retirement plans, and paid leave.
Accounts Payable and Receivable
Accounts Payable
This Department is responsible for paying bills for goods and services received by the Borough. This includes paying vendors, contractors, and other service providers.
Accounts Receivable
The Department also tracks money owed to the borough, such as fees for services (e.g., permits, fines, and water bills) or revenues from grants and other sources. Ensuring that payments are collected promptly is a key duty.
Debt Management
Borough Debt
If the Borough has taken on any debt (e.g., bonds or loans for large projects like infrastructure improvements), the Finance Department manages these financial obligations. This includes making timely debt service payments (interest and principal) and maintaining proper records.
Bond Issuance
The Department may also oversee the process of issuing bonds for large capital projects, ensuring compliance with
relevant laws and regulations.
Grant Management
Grant Administration
Once grants are received, the Finance Department ensures the proper use of funds, tracks expenses related to the grants, and ensures compliance with the terms of the grant agreements.
Audit and Internal Controls
External Audits
The Finance Department works with external auditors to conduct annual audits of the Borough’s financial records.
These audits help ensure that the borough is following proper accounting practices and maintaining transparency.
Internal Controls
The Department is responsible for implementing and maintaining internal controls to safeguard Borough assets,
prevent fraud, and ensure proper handling of public funds.
Compliance with Laws and Regulations
State and Federal Regulations
The Finance Department ensures that the Borough is in compliance with State and Federal financial regulations, including the Pennsylvania Local Government Unit Debt Act and other tax and accounting laws.
Reporting Requirements
The Department ensures timely filing of required reports to the state and other governmental bodies, including the Department of Community and Economic Development.
Public Transparency and Communication
Public Access to Financial Information
The Finance Department is responsible for making financial information available to the public. This may include posting budget documents, financial reports, and audit findings on the borough’s website or making them available upon request.
Risk Management
Insurance
The Department helps manage the Borough’s insurance policies, ensuring proper coverage for assets, liability, workers' compensation, and other risks.
Risk Assessment
The Finance Department also plays a role in assessing financial risks and ensuring that the Borough is prepared
for unforeseen circumstances.
