Auditor issues clean opinion but flags ledger reconciliation as material weakness

The town’s independent auditor, Mike Van Deventer of Mahoney Sable, told the Board of Finance on July 22 that the firm issued unmodified opinions on the town’s FY2025 financial statements and on major federal and state programs. Van Deventer said the audits were performed under AICPA and Government Accountability Office standards and provide "reasonable assurance" that statements are free from material misstatement.

Van Deventer said the audit did include one material weakness in internal control: the town and the Board of Education maintain separate general-ledger systems and the town has, at times, recorded balances that duplicate activity already recorded by the school district. "That related to the reconciliation between the school district's general ledger and the town's general ledger," Van Deventer said, and he recommended the town "limit its accounting to transactions that involve direct financial activity between the town and the school district," such as appropriations, transfers and reimbursements.

The auditor also reviewed the single-audit results for federal and state assistance, reporting that federal awards expended were "just over $1,000,000" for the year and state financial assistance totaled about $2,800,000; he said the firm issued clean opinions on compliance for those major programs. Van Deventer noted that, aside from the material weakness, the audit work encountered no significant difficulties.

Board members asked for greater detail on corrective actions. Van Deventer said management prepared and filed a corrective-action plan with the Office of Policy and Management and urged ongoing oversight: the Board of Education should continue to deliver monthly financial reports to the Board of Finance, and the town treasurer should review reconciliations prepared by the school district to confirm balances. The board agreed to follow up on those recommendations during implementation and at the next audit cycle.