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Draft audit finds restatements and recommends stronger controls; board vows reforms
Summary
External auditor presented a near-final audit that restated prior balances, noted an unclear OPEB amount, identified missing payroll documentation and budget-control weaknesses, and recommended formal procedures and secondary reviews to improve controls.
The town board heard a near‑final external audit that restated parts of prior financial statements and recommended stronger internal controls.
Nicole Ruff, the auditor from the accounting firm transcribed as "Dresser Mlei," told the board they were "in the final stages of that audit" and had delivered draft financial statements and required communications for review. Ruff said auditors plan to issue an unmodified (clean) opinion on the town’s fund financial statements but included an emphasis paragraph and restatements in the draft.
Ruff told the board auditors could not find documentation supporting a prior estimate for other post‑employment benefits (OPEB) and therefore set that balance to zero in the draft rather than retain an unsupported number. She also said auditors identified missing payroll backup for the first half of the year and several budget lines that exceeded appropriations because budget amendments had not been made during the year.
Why it matters: the audit traces to switching accounting systems, employee turnover and prior state review findings. A board member said New York State reviewed town bookkeeping in 2021 and found multiple items that had not been fully addressed; the current board described the audit as part of wider efforts to put policies and procedures in place so future officials follow consistent rules.
The auditors detailed several deliverables: draft financial statements (government‑wide and fund financials), an auditor communications letter, a management letter with housekeeping recommendations, and departmental reports. Ruff described a restatement that adjusted the OPEB balance and recorded a previously omitted $54,000 receivable related to waterfront water, as well as recognition of outstanding checks and adjustments to grant accounting.
Board reaction and next steps: members thanked the auditors and said they will review the drafts over the coming week before the firm finalizes the report. The supervisor and other board members emphasized the need to adopt and follow documented procurement and accounting procedures, institute secondary reviews of journal entries and reconciliations, and address the findings on payroll records.
The audit presentation and follow‑up discussion concluded with the board committing to review the draft statements and the auditors planning to issue final statements after the board’s review.
