HADLEY – Hadley and Hatfield are among six communities in the state losing their accountant services at the end of the year.
Both towns were recently notified by Baystate Municipal Accounting Group of Maynard that the business will close Dec. 29 after 10 years serving municipalities.
“I have decided to take a step back from the day-to-day town accountant work to focus on my health, and my family,” Justin Cole, president and director of municipal finance for the business, wrote in a letter sent to the towns.
As part of ending its service, Cole pledged to close the fiscal year 2019 books, make sure each town’s free cash is submitted to the Department of Revenue and to have the 2020 tax rates submitted and accepted by the same state agency. Payroll, accounts payable, reporting and reconciliation will all continue as normal through the end of the year.
Hadley Town Administrator David Nixon said Friday that Hadley is exploring alternatives to Baystate , looking at the accounting programs offered by both Pioneer Valley Planning Commission and Franklin Regional Council of Governments, and talking to other towns, including Hatfield, about possible shared services.
Calling it “an unfolding situation,” Nixon said he hopes to have a concrete plan for moving forward brought to the Select Board by mid-November.
Hadley has used Baystate since fall 2015, when then town accountant Gail Weiss resigned to take the same position in Orange. Nixon said over the past four years there have been no issues in how the company has handled the town’s $21 million budget, observing that Hadley has been upgraded to a AAA bond rating.
In Hatfield, Baystate has been handling accounting as well as providing assistance to the treasurer and collector since early 2018, after an audit in 2017 cited concerns with the town’s financial practices. Those practices caused the tax bills due Feb. 1 and May 1, 2018 to be sent out late and a special Town Meeting having to be called to plug a $315,000 deficit so the town’s financial books could be brought into compliance with state DOR requirements.
Hatfield’s Select Board will be meeting with Cole and the town’s Finance Committee on Tuesday at 6:30 p.m.
Other communities affected by Baystate’s closing include Warwick, Ashburnham, Millville and Monterrey.
Mary Jane Handy, a member of the state Municipal Finance Oversight Board, informed board members last week that Baystate was “overextended” and gave the communities the required 90 days notice.
“It’s going to be difficult,” Handy told the State House News Service, noting most Massachusetts cities and towns have in-house accounting staff.
In an interview with the News Service, Cole said he is working with the six communities to place them with either a traditional town accountant, or another service provider, so there are no disruptions to their operations.
The state Division of Local Services did not respond to News Service inquiries about the situation or potential ways to aid the communities. Auditor Suzanne Bump, who chairs the municipal finance board, declined to comment.
Material from the State House News Service was used in this report.
Scott Merzbach can be reached at smerzbach@gazettenet.com.
