New Canaan accepts audited financial statements; auditors issue clean opinion

The New Canaan Town Council unanimously accepted the audit committee’s recommendation to adopt the town’s audited financial statements on Dec. 17 after a presentation by the audit committee chair and finance staff.

Audit committee chair (Speaker 4) said the external auditor, PKF, will issue a clean opinion and found no material weaknesses or significant deficiencies in internal controls. The committee noted the adoption of new governmental accounting standards requiring recognition of certain compensated absences when earned rather than when used; the speaker said that change produced an opening-balance accounting impact of about $9.7 million but "doesn't do anything to our cash flows or our budgets."

The committee described routine oversight steps: five scheduled meetings a year, occasional ad hoc meetings, and more regular cash-position reporting to the committee. The auditor's clean opinion and the town’s reporting awards (GFOA excellence in reporting and distinguished budget presentation) were highlighted as markers of fiscal stewardship.

Vote and next steps: After questions from council members about whether any control weaknesses were identified, the audit committee confirmed there were none this year. The council then voted to accept the audited financial statements; the motion passed unanimously. Staff said subsequent annual reports will reflect post-balance-sheet events, including the Playhouse lease termination and related management agreement.

What to watch: The audit notes the need to monitor implementation of upcoming reporting standards (referred to in the presentation as GASB-related updates) and the audit committee requested expanded periodic balance-sheet reporting at regular meetings.