Warren council refers FY2024 audit to budget committee after questions about unaudited narrative and fund‑balance presentation

Warren — Councilors on Oct. 14 voted to refer the town’s FY2024 audited financial statements to the town’s budget committee after raising questions about inconsistencies they found in the management discussion and analysis (MD&A) narrative and some fund‑balance numbers.

Representatives of the auditing firm (Hague, Sahedi & Co.) presented the audit and answered questions from council members and finance staff. Several councilors, and a written memo from former finance staff, flagged specific language in the MD&A that did not align with numbers in the audited statements; auditors said the MD&A is prepared by town management and is unaudited narrative. The audit opinion, the auditor said, applies only to the financial statements (government‑wide statements, governmental fund statements and supporting schedules), not to the MD&A.

Key points raised: Councilors and a town consultant pointed to differing figures for the general fund unassigned balance and other summary bullets in the MD&A and asked why the document was submitted to the Municipal Finance Department before the council reviewed it. The auditor told the council that the audited financial statements reported the fund‑balance totals and that the MD&A text had not been updated in one revision cycle; the council asked that the budget committee review the points raised and that staff reissue corrected narrative where appropriate.

Formal action: At the meeting the council unanimously approved a motion to refer the audit documents and the memo from the town consultant (prepared by Michael Abusi) to the budget committee for a detailed review and to ask the auditors and staff to respond to the consultant’s points. The council also asked the budget committee to report back with recommendations before the council votes to formally accept the audit.

Why it matters: The audit is used by bondholders, lenders and state reviewers as the official financial snapshot of the town. Councilors said they need accurate, internally consistent narrative and schedule data to make budget decisions and to maintain confidence in the town’s financial reporting.

Next steps: The budget committee will review the audit package, the consultant’s memo, and the auditor’s responses; the committee will meet with the auditor and finance staff and report back to the full council with proposed corrections or acceptance recommendations.