Auditors report draft unmodified opinion; note three low-risk findings and ARPA spend-out

Malden & Jenkins senior manager Garrett Marlow told the Town Council that the firm plans to issue an unmodified audit opinion on the town's FY2023-24 financial statements and reported three low-risk findings tied mainly to inventory and grant accounting.

Marlow described the matters as routine for a year with substantial grant activity: an adjustment to inventory balances, timing differences in grant revenue/expense recognition, and two late quarterly reports for a state Department of Environmental Protection septic-to-sewer grant. He characterized the items as bookkeeping and timing issues rather than fraud or material control failures.

Auditors also reported that the town's ARPA funding had been fully expended in FY24 and would no longer appear as an outstanding balance. Malden & Jenkins said management had been cooperative and that staff had provided documentation but recommended two corrective actions: improving timeliness in closing grant cutoff entries and an additional review step for journal entries.

Finance Director Rachel Osborne and the auditors said the remaining steps are partner review and finalization; staff expects to publish the final statements and a management letter once the review is complete.

Why it matters: An unmodified opinion is the highest level of assurance auditors can provide and supports the town's financial transparency and future grant eligibility. The audit identifies administrative improvements staff can make to streamline grant reporting and internal controls.

Next steps: Auditors will finalize the opinion after partner review; staff will implement recommended process changes for grant cutoff and journal-entry review and will provide council the single-audit schedules and the management letter when available.