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Weathersfield select board fumes over delayed report

By JEFF EPSTEIN
[email protected]
WEATHERSFIELD, Vt. — After months of negotiations with an accounting firm that initially included comments in audit report critical of Weatherfield’s accounting practices, town officials state the issues are resolved but the matter is still not concluded.

Earlier this year, the Weathersfield municipal government was audited for the 2017-18 fiscal year by the Montpelier accounting firm of Sullivan, Powers & Co. After examining the town’s financial reports for that period, the firm sent Town Manager Ed Morris its proposed report on Feb. 12, which included an “adverse opinion.”

An adverse opinion means the firm believes the town financials do not accurately reflect the financial position of the town. Since then, the town and the firm have been negotiating over the report. The town has supplied the auditing firm with additional financial information and has agreed to make changes in the accounts to align with the firm’s requests.

However, Morris recently told the select board the audit report hasn’t been revised yet, and the select board expressed dissatisfaction with the auditing firm, requesting that a final report without the adverse opinion be obtained as soon as possible.

The select board first reviewed the preliminary audit results in January, hearing from Town Accountant Darlene Kelly and Town Treasurer Steve Hier, as well as Morris. According the Hier, the town only had a few items in the report with which it did not agree.

The firm, however, requested several changes to town accounting operations to meet best-practice standards. For example, Weathersfield should not have the same person who signs the checks be the person who reconciles the bank statements. The auditors further noted “Management has reported the Proctor Library Fund and the Cemetery Fund as Special Revenue Funds that do not appear to qualify as Special Revenue Funds and, therefore, should be combined with the General Fund.” The report goes on to list several other funds that the auditors said were misclassified and placed under incorrect headings.

As a practical matter, however, Morris and other town officials said this audit report collided with  the realities of running a small municipal government: It came late in the budget cycle, and at a time when Kelly was still completing her first year in her position. The select board commended Kelly when she attained the one-year mark, but the audit report arrived at the same time the office was trying to pull together current year tax receipts and the proposed budget for the following year.

The town provided the auditors with additional information to help them understand how the town operated, and agreed to make most of the accounting changes it wanted, Morris said. The firm then asked for its original report back so it could revise and resubmit it without the adverse finding.

However, the resubmission has still not happened, and the town government is now running out of patience. The revised final report was expected March 18, but was not available for select board meeting that day.

At the meeting, Selectman David Fuller said the report was very late, and that the town should perhaps seek another firm for future independent audits.

Chair Kelly Murphy asked Morris to tell the firm to send the revised final report by the next meeting, or have auditors there in person to explain the delay.

However, Morris confirmed Thursday that the report will still be not be available for the select board’s next meeting on April 1, and the matter will not be on the agenda.

Editor’s note: this version of the article adds in paragraph 6 a qualifying statement that indicates the auditors believed the town should use different headings for various funds rather than suggesting there is an objective standard.

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