Lincoln Town Council accepts 2024 audit, holds executive session for vendor litigation and adopts two Eagle Scout proclamations

The Lincoln Town Council unanimously accepted the town's fiscal 2024 audit and voted to adjourn into a sealed executive session to discuss pending litigation involving a vendor.

Stephen Gross, audit principal with CLA, presented the audit results and said the firm issued an unmodified opinion on the town’s financial statements for the year ended June 30, 2024. "We gave an unmodified audit opinion," Gross said, adding that the engagement also produced reports under generally accepted governmental auditing standards and the Federal Single Audit Act.

The audit report identified three material weaknesses in internal controls: deferred revenue recognition, non-depreciable capital assets, and accounts-payable reconciliations in the water commission, Gross said. He also described a significant deficiency under uniform guidance related to procurement policy language. "The procurement policy does not specifically state what is required under uniform guidance," Gross said, adding that the tests of expenditures did not find instances of noncompliance — the policy itself lacks some currently recommended elements.

The report included several restatements and adjustments. Gross said the general fund had an $864,000 restatement tied to an 8% ordinance; the public building bond fund had a $3,000,000 restatement tied to intergovernmental revenue; and a $44,900,000 deferred revenue correction largely related to ARPA-style funding was adjusted in the government-wide statements. He reported net changes across funds that produced a combined deficit of about $498,000 for the year on a government-wide basis.

Gross highlighted fund-balance and liquidity measures, saying the town’s GAAP-basis fund balance covers roughly 12% of estimated annual expenditures (about $80 million of annual expenditures on a GAAP basis), which he described as slightly more than one month but less than two months of reserves. He also noted business-type fund surpluses: the water fund about $500,000, the sewer fund about $200,000 and the police detail about $360,000.

Council members asked clarifying questions about specific items, such as a school capital projects deficit and tax-collection abatements. Gross said the school capital projects deficit of roughly $2.4 million stemmed from funds originally posted to other accounts and that adjustments would be made to reallocate those receipts. On taxes, staff said abatements and a slightly lower collection rate contributed to an unfavorable variance in property-tax revenue.

After discussion, Councilor Oney moved to accept the audit; the motion carried on a voice vote. Earlier in the meeting the council voted to adjourn to executive session pursuant to Rhode Island General Law 42 46 5 8 2 for litigation involving a vendor, and later moved to seal the executive-session minutes pursuant to Rhode Island General Law 42 46 7 c. The council also voted to accept the report given in executive session.

On other business, the council approved two resolutions recognizing Eagle Scout achievements: proclamations for Jack Carey and Nathan Kanter of Trupanmanville, presented as Resolutions 2025-15 and 2025-16. Council members said the proclamations were brought forward so they could be signed and delivered to the scouts following a ceremony at Saint James.

Chair Bochette praised the audit presentation and the work by staff and the auditors. "An audit is both; it takes two people. It takes both the town and us as your auditors to really go through an audit," Bochette said, thanking the audit team and town staff.

The audit presentation included next-step scheduling: the auditors said they plan to complete required data-protection forms and submit items to the single-audit clearinghouse following council approval. The auditors and town staff also outlined a goal to shorten the fiscal-25 audit timeline so future audits are available earlier in the next calendar year.

Votes at a glance

- Motion to adjourn to executive session pursuant to Rhode Island General Law 42 46 5 8 2 (litigation involving a vendor): moved by Councilor Peshet; roll-call recorded as Councilor Azar — yes; Councilor Russo — yes; Councilor Oni — yes; Councilor Pachet — yes; Chair Bochette — yes. Outcome: approved.

- Motion to seal executive-session minutes pursuant to Rhode Island General Law 42 46 7 c: moved by Councilor Pischette, second by Councilor Azar; roll-call recorded as Councilor Azar — yes; Councilor Russo — yes; Councilor Pischette — yes; Chair Bochette — yes. Outcome: approved.

- Motion to accept report from executive session: moved by Councilor Perchet (name as recorded in meeting). Outcome: approved.

- Motion to accept the 2024 audit: moved by Councilor Oney, second by Councilor Azar; voice vote — all in favor. Outcome: approved.

- Motion to adopt Resolutions 2025-15 and 2025-16 (Eagle Scout proclamations for Jack Carey and Nathan Kanter): moved by Councilor Oney; voice vote — all in favor. Outcome: approved.

Ending

The council closed the special meeting after approving the audit, taking executive-session actions, and adopting the two proclamations.