Town Audit Reveals Major Reconciliation Issues

In a recent government meeting, Neil Cragg from McGregor and Company presented the audit results for the fiscal year 2022-2023, highlighting significant challenges faced during the audit process. The meeting revealed that while there were no material weaknesses identified in the town's internal controls, a significant efficiency was noted, particularly regarding the reconciliation of bank accounts to the general ledger.

Cragg emphasized that the town's bank accounts had not been reconciled in a timely manner, which raised concerns about the accuracy of financial reporting. He pointed out that some reconciliations were not completed for the entire year under audit, leading to potential inaccuracies in the financial statements. The audit team recommended that the town implement necessary journal entries to maintain an accurate general ledger and ensure that bank reconciliations are performed regularly.

Despite these issues, Cragg reassured council members that no funds were missing, stating, \"All money was there.\" He clarified that the discrepancies were primarily due to manual errors and delays in the reconciliation process, rather than any loss of funds.

The audit's completion was delayed due to various factors, including difficulties in obtaining necessary documentation and issues with the posting of journal entries by town personnel. Cragg noted that the town's staff had struggled with reversing entries, which complicated the audit process further.

Council members expressed concerns about communication and the need for timely updates regarding the audit process. They emphasized the importance of all council members receiving the same information to avoid confusion and ensure transparency.

Overall, the audit findings underscore the need for improved financial controls and timely reconciliations within the town's financial management practices. The council is expected to address these recommendations to enhance the accuracy and reliability of future financial reporting.