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Ossipee committee weighs CPA audits, elected auditors and whether to fund periodic third-party reviews
Summary
Committee members reviewed state audit rules (MS-60), debated elected auditors versus CPA audits, and discussed appropriating funds for occasional third-party audits amid concerns that increasing budgets warrant more external review.
Members of the Ossipee Town budget committee spent a significant portion of the meeting discussing audit procedures and the town’s approach to financial oversight. A participant outlined DRA guidance and MS-60 reporting thresholds: if a municipal entity receives $500,000 or more in federal funding then a CPA audit is required; otherwise towns can use elected auditors or CPA services.
Several committee members said precinct budgets have grown and urged a re-examination of practice. One member asked whether the town should budget for a third-party audit every few years; another recommended asking the town’s CPA what they would charge to perform a formal audit and consider appropriating a periodic audit in the executive line rather than a one-time $7,500 external engagement.
Committee members described the town’s current safeguards: a contracted CPA with access to QuickBooks, an in-house bookkeeper and an elected auditor who performs the annual review. Members noted the Department of Revenue Administration receives the audited reports and can flag issues. The group discussed a recent procedural problem when a precinct uploaded an unsigned warrant article to DRA and said they would re-upload signed documents and notify DRA reviewer Michelle Clark to clear the checklist.
No formal policy change was adopted at the meeting; members repeatedly noted that changing the statutory audit threshold would require action by the state legislature. The committee agreed to encourage precincts to consider periodic independent reviews and suggested the budget committee could recommend funding for a periodic audit through its budget process.
