Council urged to require quarterly capital-asset reconciliations after audit found recordkeeping gaps

Auditors told the Nelson Field Town Council the most significant internal-control issue in the FY2024 report concerned capital-asset recordkeeping. Cheryl Langevin, manager on the engagement for Bacon and Company, said auditors found "a decent amount of changes to your capital asset records as they relate to the audit" and that "there's really no procedure in place to record assets, additions, deletions, that type of thing throughout the year." She recommended the town adopt a quarterly reconciliation process for capital assets.

Council and staff discussed steps to respond. Tony (town finance/administration) said he has been editing records and is coordinating with the Asset Management Commission and with Paul Nordstrom on software that could manage assets from acquisition through disposition. Tony said the commission and administration plan to present a definitive plan to the council when Paul Nordstrom returns to the state.

Council members stressed the need to tie audit follow-up to implementation: automating entry (at purchase), assigning responsibility for inventory changes, and running periodic reports to reconcile additions and retirements. Staff said a software solution and a process that logs assets from procurement through disposal would, if implemented, reduce year-end corrections.

The auditors and staff framed their recommendation narrowly: it applies to the town's governmental activities and to the water and sewer enterprise funds, both of which record capital assets that require consistent year-round recording. The council directed staff to return with a plan that includes proposed software options, roles, and a timetable for quarterly reconciliations.