New Canaan council approves PKF O'Connor Davies as independent auditor after public concern about independence

The New Canaan Town Council voted unanimously to engage PKF O'Connor Davies as the town's independent accounting firm for the annual audit for the year ended June 30, 2025, with a base fee of $113,450. The motion passed after a period of public comment in which a speaker faulted the town's prior audits and questioned auditor independence and related‑party disclosures.

Why it matters: The audit contract sets who reviews the town's financial controls and statements. Concerns about auditor independence and related‑party transactions, if left unaddressed, can affect public trust and the town's financial oversight.

A resident who identified himself as Roy criticized the town's incumbent auditors during public comment, saying the firm had repeatedly failed to note internal‑control deficiencies and had not disclosed related‑party transactions until challenged. "They're protecting the client and they're more interested in a hundred and $13,000 fee," Roy said, adding that a related‑party vendor representing roughly $463,698 in town sales should not have been dismissed as immaterial without fuller disclosure.

Town staff responding during the agenda item said the audit engagement was put out to bid last year and that two firms submitted proposals. Anne Kelly Wentz (town staff) said the audit committee reviewed proposals and "chose PKF as their as the audit firm." Wentz provided a price breakdown in response to questions: roughly $57,800 for the town portion and about $55,060 covering Board of Education audit work, producing the stated $113,450 total.

Council members and staff described the selection process as a panel review by the audit committee. Staff noted factors considered included price, service scope, and willingness to provide on‑site staffing given turnover in the town finance office. Other firms discussed during the meeting included CLA and Blum Shapiro, which staff said submitted proposals.

Motion: A council member moved to approve the engagement of PKF O'Connor Davies as New Canaan's independent accounting firm to include the annual audit for the year ended 06/30/2025, with a base fee of $113,450 and additional fees to be negotiated for services beyond the annual audit scope. The motion was seconded and passed unanimously.

The council did not alter the engagement terms at the meeting. Staff said additional services beyond the base audit scope would be negotiated separately if required.

Next steps and oversight: Staff and council members emphasized the audit committee's role in vetting firms and said council members may follow up on any specific concerns raised during public comment through the audit committee or during the next audit cycle. The public commenter urged greater scrutiny of internal controls and vendor relationships; council discussion on that point focused on the selection process rather than reopening the audit contract.