Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit And Financial Controls topic
No spam. Unsubscribe anytime.
Board hears status of unresolved FY2024 audit corrective action; treasurer-school reconciliation at issue
Summary
The board was updated on an outstanding corrective action from the FY2024 audit: auditors flagged problems reconciling Board of Education cash flows and multiple school bank accounts into the town's financial statements. Town staff will draft corrective language (KAPPA) and work with the superintendent to finalize it by month-end.
The Board of Finance received an update Dec. 17 on an unresolved corrective action originating in the FY2024 audit related to reconciling school cash and town financial statements.
Jeff McGuire explained auditors found the treasurer's attempts to reconcile monthly Board of Education disbursements and school bank accounts to the town ledger were insufficient. "The school has four bank accounts — operating, grant, student activity and cafeteria — and the treasurer was attempting to reconcile transactions processed by the Board of Education into town financial statements," Jeff said. He added that communication between the town administration and school finance was inconsistent, and that the auditor accepted a proposed corrective action (KAPPA) drafted by the town administrator but the superintendent disagreed with parts of it.
Jeff said he will draft language that the superintendent can approve and hopes to finalize the corrective action by the end of the month. He described the issue as principally procedural: the treasurer needs consistent, collaborative monthly information from the school finance office so the town can produce accurate statements and the board can exercise oversight.
Board members discussed arranging a three-way meeting with the auditor, the town administrator and the superintendent to resolve outstanding items quickly. Several members stressed the issue does not hold up the current audit but is a corrective action plan the state requires to demonstrate improved procedures.
Next steps: town administration will work with the superintendent and the auditor to finalize KAPPA language and provide clearer monthly reports and reconciliations to the treasurer's office so town financial statements match school activity.
