[read complete report - pdf]

Audit Objective

Determine whether the Board:

• Provided adequate oversight of the Town’s budgeting and financial operations to ensure that resources were used effectively.
• Ensured that the Town’s information technology assets were adequately safeguarded.

Key Findings

• The Board’s continual appropriation of nonexistent fund balance has weakened the financial condition of the town-wide (TW) general fund and central water district.
• Interfund services were not properly tracked and billed back to the appropriate fund, resulting in taxpayer inequities.
• The Board did not adopt information technology (IT) policies and procedures for breach notification, access rights, disaster recovery and backups, and has not provided IT security awareness training.

Key Recommendations

• Discontinue appropriating nonexistent fund balance in the TW general fund and central water district.
• Ensure interfund services are billed back to the appropriate fund.
• Adopt comprehensive IT policies and procedures and provide IT security awareness training.

Town officials generally agreed with our recommendations and have initiated or indicated they planned to initiate corrective action.