At the June 12 Finance Committee meeting, treasury staff reported that the FY23 audit was delivered late because the town’s prior audit firm underwent mergers and the acquiring firm, CVIS, reviewed the predecessor firm’s audits before finalizing them. Treasury staff said the FY23 audit is now complete and that the FY24 audit work has resumed.

Why this matters: Audits provide independent assurance about municipal financial statements and internal controls. A delay in completing an audit can affect bond timing, financial reporting and the town’s ability to publish timely financial statements.

Treasury staff said the audit identified no material misstatements in the financial statements, but auditors noted a material weakness related to unpaid invoices in the water and sewer department; staff said they addressed the unpaid accrual matter and expect it to be fixed for FY24. The audit also contained a standard significant deficiency note that management could override controls — a common finding in many municipal audits.

Staff said the town now has a five-year contract with the new auditor and that auditors are back working on FY24 and plan to proceed to FY25 when FY24 is complete. Committee members asked staff to relocate the FY23 audit file in the committee’s meeting folders so the financial statements appear under the correct tab for public review.

Ending: Committee members heard no other significant red flags in the audit and staff said they will follow up on timing and file organization for committee materials.