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New Canaan auditors, finance staff report town and school finances largely on track; transfer-station fees flagged as outlier
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Summary
Town financials showed general fund revenue at about $176.3 million (100.6% of budget) with expenses on track; BOE reports encumbrances for salaries/tuition and grants timing items. Committee flagged transfer-station tipping fees as a revenue outlier and discussed bank reconciliations and cash-management practices.
Town and Board of Education finance staff presented February/March financial statements to the New Canaan Audit Committee on April 17, reporting broadly favorable budget attainment but noting a handful of timing and operational items that merit monitoring.
Ryan (budget and financial systems presenter) told the committee general-fund revenue stands at $176,300,000 — "100.6% of budget for this year" — with three months remaining in the fiscal year. He said current tax collections were about $165,500,000 (3.9% over last year) and that conveyance fees and some operating transfers had boosted revenue. He also noted building-permit revenue (about $691,000) remains below last year's unusually high 2024 totals and sits at roughly 76.8% of typical season-to-date expectations.
Ryan flagged transfer-station tipping fees as a clear outlier: "We're at $208,000, which is 50% of the budget," he said, and added that local haulers appear to be choosing alternatives this year. The shortfall in tipping-fee revenue corresponds to reduced expenses in the same function, Ryan said, but the committee asked finance staff to monitor this line for the remainder of the year.
On investments and interest income, an investment staff member explained that as lower-yield, pandemic-era securities matured, the town reinvested in higher-yield treasuries and realized modest gains: "As those have matured... we've been able to reinvest in higher-yielding treasuries," the presenter said, as one reason actual interest receipts exceeded last year's amounts despite budget changes.
Year-to-date expenses across town functions were $125,200,000 (69.2% of budget), and staff said nothing materially concerning had emerged in department-level variances. Finance staff explained the reporting cadence: financials presented to the committee are typically one month behind to allow bank reconciliations to be completed; the senior accountant handles the majority of bank recs while the comptroller handles Board of Education bank reconciliations.
School finance leader Sean O'Keefe reviewed BOE figures: operating-expense attainment was 59.7% of the full-year budget with $42,000,000 encumbered (salaries, benefits, property services and outplaced tuition). Sean said awarded grants total $1,900,000 with $973,000 remaining and characterized several budget movements (school-lunch revenue variance, equipment purchases) as timing differences that should correct by year end.
Committee members requested clearer linking of MD&A disclosures to drivers (for example, how much of a salary-and-benefits increase is due to step changes or head count vs. compensation changes); staff pointed to published staffing-distribution reports, collective bargaining agreements and the June 30 closeout statement of accounts as sources that provide the granular detail if readers want it.
Next steps: finance staff will continue to monitor transfer-station tipping fees, maintain monthly reconciliations and supply the audit committee with implementation updates tied to procurement-audit recommendations and any policy changes.
