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Auditor gives Northborough a clean review; board discusses how and when to use reserves
Summary
Contracted auditor Tom Scanlon found strong controls and no audit disagreements; the board discussed the town’s roughly $13.3 million unassigned fund balance and debated using reserves for one‑time expenses with an emphasis on a multiyear replenishment plan.
The select board heard on Jan. 26 from Tom Scanlon, the town’s contracted auditor, who delivered a largely positive audit assessment and urged careful policy for any use of reserves.
Scanlon told the board, “The audit went very well. We had no disagreements with management. We gave no correcting journal entries,” and praised the town’s financial reporting and internal controls. He said the town’s unassigned fund balance — the combination of free cash and stabilization — stood at about $13.3 million, which he characterized as prudent relative to the town’s budget.
Board members used the presentation to probe whether tapping reserves would be appropriate for one‑time costs, such as anticipated special-education spikes in school expenses. Scanlon and Town Administrator Jason Little emphasized that reserves can be used for one‑time needs provided the board has a multi‑year plan to replenish them, and they cautioned against relying on reserves for recurring operating costs.
No formal vote was required. Several board members asked staff to return with more specific scenarios and a possible plan for responsible, limited use of reserves tied to a replenishment schedule.
