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Council grants 45-day extension for annual report amid sharp criticism of delayed audit
Summary
The council unanimously approved a 45-day extension for the city administrator to file the annual report, while several councilors sharply criticized the city’s auditing firm for delivering FY2024 financials late and recommended issuing an RFP for future audits.
The Saco City Council on Aug. 25 voted 7-0 to grant an additional 45-day extension for the city administrator to file the annual report required under the city charter.
Councilor Gunn moved to grant the extension; Councilor Edwards seconded. Councilors voted unanimously to approve the motion.
During discussion Councilor Johnston criticized the auditing firm’s delays and said receiving FY2024 audited financials so late is “unacceptable.” Johnston urged the council to review its relationship with the current auditor and consider a request for proposals for municipal audit services. He said the late audit impedes the council’s ability to govern and to designate fund balances on schedule. “Waiting on FY2024 to be delivered when we’re in the process… beginning the FY2025 audit process while we’re also now in FY2026… is unacceptable,” Johnston said.
Several councilors echoed frustration. A councilor who identified themselves as having contacted the firm said they have been “bugging them every day” and had spoken with the managing partner; that councilor said staff was ready to finalize the report once the auditor provides the CAFR (Comprehensive Annual Financial Report) section. Councilor Hewitt asked whether staff had assurance the information would be provided within 45 days; the city administrator said the internal report is done and staff is waiting on the financial statements from the auditor.
Staff told the council the charter requires the city administrator to submit an annual report at the end of each fiscal year and that the council previously approved a 45-day extension on July 14. The current extension is intended to allow time to receive FY2024 audit excerpts and finalize the annual report. Several councilors asked that the audit delay be addressed by council action in the coming year.
