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Select Board hears auditor say town’s financial statements are clean with narrow investment qualification
Summary
The town’s independent auditor said the 39-page audit contains no material weaknesses and praised a turnaround in unassigned fund balance, while noting a recurring technical qualification tied to carrying investments at market rather than cost.
The Select Board received a presentation of the town’s annual audit on March 6, during which the auditor said the town’s financial statements were broadly sound but carried a recurring technical qualification related to investment reporting.
Rick, the auditor, told the board the 39‑page report’s most important pages are the auditor’s opinion. He said the only qualification this year was that the town carries certain investments at market value rather than at cost, which the auditor described as a technical reporting choice rather than an operational deficiency. “The only qualification to our report with the town of Grafton is…related to the investments being carried at market rather than being carried at cost,” he said.
Rick highlighted fund‑balance results and noted the unassigned portion of the general fund moved from a deficit in the prior year to a positive position this year. He said restricted balances reflect FEMA advances that must still be spent on projects, and recommended that the board review policies such as a fraud‑risk assessment, vacation‑payout practices and uniform‑guidance language for grant administration.
Board members asked whether the current unassigned balance was appropriate and whether federal single‑audit requirements might apply next year. Rick said GASB guidance generally recommends holding a fund balance sufficient for cash‑flow and unforeseen events (often cited in practice as roughly 15%–25% of a budget), and he offered to help staff calculate whether federal award totals would trigger a single audit when year‑end figures are available.
The auditor also reported no material weaknesses or significant deficiencies requiring disclosure and said staff cooperated fully during the audit. He left the board with recommended management‑letter items and offered to provide sample uniform‑guidance policies for staff to adapt.
The board thanked the auditor and agreed to follow up on the management recommendations during its committee and staff meetings.
