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Auditors explain financial-audit scope, recommend formal fund assignments and targeted operational reviews
Summary
Contracted auditors told the Town Board of Greenburgh that their engagement issues an opinion on year-end financial statements and advised the board to pass formal resolutions to assign earmarked funds; they also recommended targeted operational/internal audits to improve controls and efficiency.
Jeff, the contracted auditor, told the Town Board of Greenburgh that the firm's primary responsibility is "to render an opinion that the financial statements are materially correct" as of the fiscal-year end and that the audit is a point-in-time examination focused by a risk assessment of material accounts. He described standard procedures including tests of cash, receivables and payables, reviews of capital-asset additions and pension disclosures, and examination of outstanding debt and bond documents.
When asked whether the town should expand beyond the financial-statement audit, Jeff said forensic audits are usually targeted when a specific anomaly is suspected, while operational reviews or an internal-audit function can "dig into policies, procedures and best practices" and examine particular areas in more detail. "You could contract with a firm for an operational review," he said, adding that municipal clients sometimes hire internal-audit functions or contract externally to perform recurring deep dives.
Scott, also on the audit team, described how school districts use an internal-audit framework to prioritize and study one operational area a year, producing recommendations or validation of existing processes. He said that model can surface efficiencies without requiring an immediate, systemwide review.
On a separate point of process, Jeff recommended the board formally assign any funds meant to be reserved. "If there's an intention to set aside money for funds, the board should also pass a resolution saying we're going to officially earmark or assign the dollar amount," he said, so the assignment appears clearly as "assigned fund balance" in the financial statements and avoids later misunderstanding.
The auditors said they have seen firms use AI tools but that AI-driven initiatives in local government are still limited; they suggested an operational review could assess the suitability of automation or AI for specific accounting or administrative tasks.
Next steps noted in the meeting: auditors agreed to work with the controller and town staff on contract-language changes before the board's scheduled vote, and board members discussed asking the audit contractor at the time of renewal to add operational-review scope if the board wishes to pursue that approach.
