Auditor reports two repeat material weaknesses; council accepts Charlestown 2024 audit

Bacon and Company presented the Town of Charlestown’s fiscal year 2024 audit to the town council on April 28 and reported two repeat findings described as material weaknesses; the council voted to accept and place the audit on file.

Pat Boucher of Bacon and Company reviewed the independent auditors’ report and the separate report on internal controls and compliance. “We did have 2 findings. They are repeat findings from last year. There's 2 material weaknesses, relating to financial reporting and close and segregation of duties,” Boucher said. She described the findings as largely driven by limited staffing and the need for formal close procedures and reconciliations.

Boucher told the council the audit showed an operating surplus on a budgetary basis of about $1.3 million for the fiscal year and a general fund balance of roughly $12.2 million, with approximately $7.6 million unassigned. She also noted the town’s OPEB trust increased by about $905,000 to roughly $10.5 million and that governmental‑activities net position was about $35.5 million; she characterized the town’s overall financial position as good.

Councilors asked about upcoming reporting changes; Boucher said the Governmental Accounting Standards Board changes to compensated‑absences reporting will require accrual of certain leave balances on full‑accrual statements beginning in 2025.

The council voted 5–0 to accept, approve and place on file the fiscal year 2024 audit; the motion was made by Councilor Sarah and seconded by Councilor Marr. The auditor and staff noted there were no compliance findings that required reporting under federal single‑audit requirements for the year.

Boucher recommended the town continue addressing month‑end and year‑end close procedures and segregation of duties as resources permit. The council recorded the audit for the public record and directed staff to proceed with the standard follow‑up on the two audit findings.