Board raises questions about audit scope, timing and potential costs while default budget persists

During Monday's meeting the New Boston Select Board scrutinized an engagement letter for audit services and raised questions about scope, timing, and budgetary impact.

Board members asked whether the 2024 audit had been fully completed and provided to the board; staff indicated the audit had been recently completed but the town had not yet received a copy. The engagement letter included a basic financial statement audit fee of $24,000 and a single-audit schedule that lists $5,000 for the initial program and $1,000 for each additional program to be tested under uniform guidance. Members expressed concern that the number of programs requiring single-audit testing was unknown and that the potential for additional fees created an open-ended obligation.

There was also discussion about items in the engagement marked as "non-attest services" and whether routine clerical tasks (for example, filing state forms) should be performed by the auditors or handled by town finance staff. One member said he would consult a CPA acquaintance and circulate comments to the board. Staff agreed to provide the board with the most recent audit documents and follow up on outstanding questions before asking for final authorization to sign the engagement letter.

Next steps: staff will send the board members the audit materials they have, collect board comments on the engagement letter, and return with clarified cost expectations and answers about the scope of non-attest work. No final authorization to sign the engagement was recorded at this meeting.