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East Haddam audit delays could push back planned road bond; board approves software to manage future audits
Summary
Finance staff told the Board of Selectmen that the town's fiscal audit will likely be issued in July after final national review, potentially delaying planned road bonding. Staff proposed buying a $5,000 audit-management app plus consulting to avoid repeat delays; the board discussed funding the expense from contingency and plans to press the Board of Education for commitments on deliverables.
Finance staff told the East Haddam Board of Selectmen that the town's fiscal audit will likely not be completed before July after auditors completed final entries and the report entered a national review process, a delay that town officials said could postpone planned road bonding by several weeks.
The finance presenter said auditors completed reconciliation after last-minute entries and the town expects a three-week national review. The delay means the town cannot finalize a planned bond for road work until the audit is complete, which could push contracting into August and possibly increase borrowing costs, officials said.
Why it matters: The town had planned to sell bonds in time to fund summer paving; a delayed audit could change the timing of borrowing and may prompt rating agencies to ask about internal staffing and process changes. A board member warned that repeated late audits could erode leniency from rating agencies.
To reduce the risk of future delays, finance staff proposed purchasing an audit-management application priced at $5,000 plus a $2,500 setup fee and hiring consultant support the auditors offer (estimated $2,000'$3,000) to organize deliverables, assign responsibilities and track completion in real time. The presenter said the app will make it clear who is responsible for each audit task and allow staff to spot missing items well before submission deadlines.
Board discussion focused on where to pay for the software and services. One selectman proposed using the Board of Finance contingency to cover the cost, and the finance presenter said the town IT and the auditors' IT had confirmed compatibility and that a written quote should be available for the next meeting.
Several members asked that the town's Board of Education sign a written acknowledgment of assigned audit tasks and timelines so expectations are clear. The selectmen discussed drafting a joint letter and placing the obligations on record to reduce future coordination failures.
Officials said a delayed audit has tangible consequences: it can postpone bond sales, constrain when contractors can begin road work and, in some cases, affect the town's borrowing rates depending on how rating agencies interpret repeated delays. The presenter said the town had faced a similar delay in the prior audit cycle but received understanding from the rating agency at that time because the delay coincided with staff transition.
The board did not take a final funding vote for the software at the meeting but directed staff to obtain quotes and to return with a recommendation; selectmen signaled support for using contingency funds if needed.
The board expects to receive a clearer issuance date after auditors complete their national review; staff pledged to provide updates and to begin a pattern of regular Board of Education reporting on audit deliverables starting in July.
