Section 1 Fiscal Year
7_1_1 Effective in 1971, the fiscal year of the town shall begin on July 1 and end on June 30, unless otherwise provided by general law.
Section 2 Annual Audit
7_2_1 There shall be an annual audit of the town accounts under the supervision of the state director of accounts, in accordance with the provisions of general law.
7_2_2 In any year that the state director of accounts shall fail to conduct an audit as described in section 7_2_1, the board of selectmen shall engage a certified public accountant or firm of such accountants to audit all accounts of the town. Such accountants shall have no personal interest in the fiscal affairs of the town government or any of its officers.
Section 3 Comprehensive Budget
7_3_1 The board of selectmen, the school committee, the community planning commission, and any others seeking appropriations, shall each prepare a budget proposal detailing anticipated expenditures for the ensuing year.
7_3_2 All budget proposals shall be consolidated by the town administrator into a comprehensive town budget, and a copy shall be filed with the finance committee, in accordance with bylaw.
7_3_3 The comprehensive budget shall provide a complete financial plan for all town funds and activities for the ensuing year and shall be submitted in a format approved by the finance committee. The budget shall indicate proposed expenditures for both current operations and capital projects during the ensuing fiscal year.
7_3_4 Every comprehensive budget shall include a summary message explaining the budget both in fiscal terms and in terms of proposed work programs. The budget message shall also include any major changes from the current policies, expenditures, and revenues together with the reasons for such changes, a summary of the town's debt position, and any other material deemed appropriate.
Section 4 Capital Improvements Program
7_4_1 At least one month prior to the final date fixed through bylaw for the submission of budgets, the town administrator shall submit a five year capital improvements program to the board of selectmen and the finance committee. Such program shall include: (a) a list of all capital expenditures proposed during the five fiscal years next ensuing; (b) cost estimates, methods of financing, and a time schedule for each such acquisition; and (c) the estimated cost of operating and maintaining the equipment or facility to be acquired. The capital program shall be revised and expanded annually. [Amended 10_3_1988 ATM by Art. 16, approved 5_2_1989]
Section 5 Lapse of Appropriation
7_5_1 Every appropriation, except an appropriation for a capital expenditure or an appropriation that results from an approved town meeting article specifically worded to be effective for a longer period, or an appropriation to a conservation or other accumulating fund, shall lapse at the end of the fiscal year in which the appropriation was made to the extent that it has not been expended or encumbered. Appropriations continued beyond the current year may be closed out by the town accountant and returned to the town treasury if three years pass without any disbursement from or encumbrance of such appropriation.
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