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Finance update: 2022 audit submitted; December fraudulent transactions were refunded
Summary
Finance staff told the committee the town submitted its 2022 audit to the state auditor, expects remaining 2023 property tax funds after auditor notification, and recounted fraudulent ACH/check transactions posted to the town's account in December that the bank refunded; the town has implemented additional safeguards.
Wellington Town finance staff reported at the Feb. 24 Finance Committee advisory work session that the town’s 2022 audit has been submitted to the state auditor and that monthly financial reports and audit presentation are on the schedule for the March 11 board meeting.
Staff said the 2022 audit produced no material findings and that the town expects the remainder of 2023 fiscal‑year property tax funds once the state auditor notifies the county. Monthly financials are posted after board approval of minutes; staff explained the timing lag for public posting.
Finance staff also described a set of fraudulent transactions that posted to the town’s account and hit the December statement. The town’s bank (First National Bank, FNBO) disputed the transactions and refunded the funds in January; staff said the town "did not lose a penny." The fraudulent entries temporarily affected year‑end figures but will be offset by the January refund in the following fiscal reporting period.
To reduce future risk, staff said the town has implemented additional banking safeguards, including positive pay and manual ACH review and is establishing monitoring guardrails to detect atypical amounts. Staff said they are identifying typical transaction patterns so outliers can be flagged earlier.
Staff invited committee questions about the treasurer’s report and noted they had sent trial balances and audit adjustments to the auditor for 2024; the audit presentation is scheduled for the board meeting on March 11.
No formal actions or votes were taken during the work session.
