Finance committee reviews draft internal-controls manual after auditor recommendation

Town staff told Orono’s Finance Committee on June 17 that they are preparing an updated internal-controls manual to align procedures with current practice and auditor recommendations from the FY25 audit. Zach, the finance director, said the draft consolidates spending policies and operational controls into a single document for staff use and public posting.

Committee members agreed the manual should be reviewed by council because council is ultimately responsible for fiscal governance, but several members urged committee-level review first so council time is used for higher-level approvals. Members noted that some spending limits are established by ordinance and should remain in ordinance language while operational procedures can be placed in the manual. The group asked staff to identify which sections require council action and which are internal procedures.

Staff said the draft is substantial — roughly 68 pages including appendices — and asked the committee to allow adequate time for review. Committee members asked that staff call out sections already approved by council, include ordinance citations where rules derive from existing law, and provide a timeline for review. The committee recommended bringing a vetted draft to council for approval after finance-committee review and suggested staff clear editorial work with auditors as needed.

Next steps: staff will share a timeline and a marked-up draft that highlights items requiring council approval; the committee will consider the manual after members have sufficient time to read the draft.