Nelson Field auditors deliver unmodified opinion on FY2024; single federal-aid audit clean, one local reporting finding

Cheryl Langevin, manager on the engagement for Bacon and Company, told the Nelson Field Town Council on April 28 that the firm issued an unmodified audit opinion on the town's fiscal year 2024 financial statements. "Pages one through three of the report is the audit opinion which was unmodified," Langevin said. The firm also reported no findings related to the single-audit of federal funds but flagged one finding on financial reporting related to capital assets.

Langevin walked councilors through headline figures from the report. She said governmental activities ended FY2024 with net position of $40.4 million, of which $45.7 million was invested in capital assets, $11.1 million was restricted and there remained a $16.5 million unrestricted deficit; governmental activities increased net position by $6.3 million in FY2024. Business-type activities (water and sewer) ended the year with net position of $12.8 million; business-type activities increased net position by $813,000. She also reviewed fund-basis balances: the general fund ended the year with a total fund balance of $11.6 million (about $9.9 million unassigned) while other funds showed various increases and decreases detailed in the report.

On federal compliance, Langevin said the single-audit portion showed no findings. On internal reporting, she said the audit identified one issue: capital-asset records required adjustments and lacked a formal, year-round procedure for recording additions and deletions. "There's really no procedure in place to record assets, additions, deletions, that type of thing throughout the year," Langevin said, and recommended quarterly reconciliations.

Councilors asked for additional detail on several schedules reported in the audit, including tax receivable roll details and allowances for uncollectible accounts. Langevin pointed them to state-required schedules and particular pages in the audit where tax-year breakouts and allowance amounts are shown. Councilors also discussed follow-up work: the town manager/administration and the Asset Management Commission agreed to coordinate on a capital-asset process and possible software selection to improve asset tracking. Council members requested staff provide more granular extracts (by tax year and by account) so the council can better understand abatements, assessments and reserves going forward.

Langevin closed by offering to answer additional questions and to work with staff on implementation of her recommendations for capital-asset recordkeeping. The council later voted to open the audit review for public comment and then to close that comment period; procedural motions to open, close and adjourn were approved during the meeting.