One notable issue discussed during the meeting was the FY 24 audit findings presented by representatives from CBI. The audit revealed some deficiencies in the town’s internal control environment, particularly concerning federal award programs like ARPA. The audit found discrepancies in the procurement processes and fund reporting to the US Treasury, as well as a need for updated policies and procedures to align with federal guidelines. These findings require management to develop corrective actions, which were discussed as potentially being addressed by the next audit period. Concerns were raised about the timing of these findings, as the audit period was from two years prior.

In addition to federal award findings, the audit highlighted deficiencies in the retirement system’s data management, which resulted in substantial delays in the audit process. The system faced challenges accessing essential actuary and census data due to ineffective IT oversight, leading to a late actuary report. This delay impacted the timely reporting of financial liabilities on the town’s financial statements. The audit team received necessary data files only in late summer or early fall, delaying the actuary report until November of the previous year. These issues raised concerns about systemic problems within the retirement system’s operations, prompting discussions on measures to prevent future occurrences. Recommendations were made to strengthen controls over data management, considering the legal separation between the town and the retirement board.

The discussion also touched on cash management challenges within the retirement system. An external consultant was hired to assist with reconciling cash balances, yet necessary audit information was not readily available, resulting in the classification of the issue as a material weakness. Previous reports had noted delays in receiving information from the retirement system office.

Further, the meeting addressed general impediments throughout the audit process, including communication and the timely delivery of reports. The departure of a senior manager from the auditing team contributed to delays, with assurances made to maintain staffing continuity in future audits. Concerns about the timeliness of the FY 24 audit completion were raised, highlighting implications for the upcoming FY 25 audit. The auditing team aims to complete the FY 25 audit by the end of June, facilitating a smoother transition into the FY 26 audit.

The Select Board also deliberated on whether to continue with CBIS for the FY 25 audit. The Audit Advisory Committee recommended a one-year extension for CBIS, citing the firm’s existing knowledge of the town’s financial landscape as advantageous. Alternatives were considered, but transitioning to another auditor was deemed resource-intensive. The committee emphasized the need for a structured follow-up and feedback loop to address challenges in communication.

Ultimately, the board voted unanimously to extend CBIS’s contract for one year, focusing on maintaining communication and ensuring progress. The extension was tied to the fiscal audit process, not bound to a calendar year, with an emphasis on establishing a feedback mechanism for future audits.