2023 audit near final; audit partner notes material weakness tied to cyber incident as bank reconciliations are brought current

Scott Bassett, partner at audit firm RSM, presented to the district's ad hoc audit committee and finance staff; Mike Weaver and Finance staff reported that RSM is expected to issue the final 2023 audit report within days. Weaver told committee members the auditor identified a single material weakness for Danbury Public Schools related to a prior cyber incident; no other major findings were reported for 2023.

Weaver said bank reconciliations, which had lapsed in prior years, have been a primary focus. He described a program to bring multiple accounts (general operating, payroll, grants, school lunch, student activity) up to date and said a contractor under an agency agreement is being trained by auditors from CLA to perform monthly reconciliations going forward. "We have just about two years' worth of bank reconciliations done in a few months," Weaver said, while noting the team will remain about a month behind as a practical matter.

The committee discussed the 2024 audit timeline. The 2024 audit had not yet been kicked off because an engagement letter between the city and RSM needed signing; committee members were told staff expects to start the 2024 field work shortly after that step and to complete the audit within approximately six months. Staff said they are coordinating trial balances and subsidiary records with the city's finance office to ensure the auditors can tie ledgers to bank statements and subsidiary detail.

No votes were taken. The committee asked staff to continue to provide status updates as reconciliations finish and the 2024 audit engagement letter is executed.