Jim Wilkinson, the lead auditor for the firm previously known as Markham (now merged with CBIZ), told the Woonsocket City Council on Dec. 30 that the city's FY2023 audit presents "a high level of audit risk" and requires expanded testing of internal controls.

"This is not the typical audit," Wilkinson said, pointing to concerns about "management override of controls," segregation-of-duty gaps and a large number of funds that create more places for transactions to move without oversight. He said auditors have performed extensive process mapping and targeted tests of transaction cycles, revenue recognition and federal-program allocations including ARPA and ESSER.

The audit team reported completing much of its planning work and said draft financial statements and updated footnotes are in hand. Wilkinson told the council he expects final trial balances by the end of January and to publish a report "sometime in February." Councilman Kenoyer pressed for clarity on timing: "So you expect to have a completed audit by the end of February?" Wilkinson replied, "Yes." (Councilman Kenoyer asked the question during the public Q&A.)

Auditors described specific areas of focus: IT control weaknesses including excessive super-user access, timeliness of bank reconciliations, property-tax assessment analyses, payroll and salary testing, and examination of journal entries for evidence of unauthorized adjustments. Wilkinson said the team is coordinating monthly with the Auditor General's office and that some findings will be reported as material weaknesses with detailed recommendations for management.

Council members urged the auditor to surface control problems that warrant immediate council attention. Wilkinson said there were no items that required immediate public action at present, but he anticipated a higher volume of material weaknesses to be documented in the final management letter. The report will include recommendations to strengthen segregation of duties, close redundant funds and improve reconciliation timeliness.

Wilkinson also noted the firm's corporate name change: Markham merged with CBIZ on Nov. 1, and the engagement letter will be updated accordingly. No formal council action was taken on the audit during the meeting; staff and auditors will continue to communicate with the Auditor General's office and bring draft findings to the council when available.