The Audit Committee met to discuss its annual report for the Select Board, focusing on financial statements, internal controls, and audit recommendations. Key topics included cash reconciliation, the warrant process, student activity fund oversight, and the ongoing management of guaranteed deposits.
Committee members reviewed the draft report for the Select Board, which detailed findings from the latest audit cycle. A primary issue discussed was the absence of a management letter from auditors this year, which members agreed required clarification. The committee also noted that no material weaknesses were identified but emphasized the importance of maintaining financial oversight.
A key recommendation was to require student activity fund disbursements to follow the same warrant process as other funds. This change would ensure that all disbursements are processed through the financial system concurrently with banking transactions. Committee members agreed that adopting the warrant process would streamline reconciliations and reduce errors. The Department of Elementary and Secondary Education (DESE) recommends auditing fund checkbooks every three years, and the committee suggested formalizing this practice.
The committee reviewed past cash reconciliation challenges and confirmed improvements in the process. While reconciliation issues have not been entirely resolved, they are no longer considered a material weakness. The town has enhanced its reconciliation procedures, and further recommendations included ensuring the continued use of the warrant process to minimize discrepancies.
Regarding internal controls, members debated whether to recommend an internal control audit. Auditor Alina from the town’s audit firm, CBIZ, clarified that their financial audit does not include comprehensive control testing. Some members expressed concerns over prior lapses in financial oversight, suggesting that an independent audit of specific processes, such as disbursements, could be valuable. Finance Director Brian Keveny agreed to consult with Town Manager Michael McCall to identify areas where an internal control review might be beneficial.
The committee discussed the status of guaranteed deposits, which remain at approximately $500,000. The Planning Board has determined that unclaimed deposits will be considered gifts to the town. Members recommended regular progress reports from the Town Manager to the Select Board to ensure transparency in managing these funds. The difficulty in identifying and contacting depositors was also noted as a challenge in finalizing these balances.
Members agreed to extend the engagement with CBIZ for one more year while preparing a Request for Proposal (RFP) for future audit services covering Fiscal Years 2026-2028. The committee plans to issue the RFP by the end of April, allowing three weeks for responses and a selection process by June.
The committee voted to approve both the Select Board report and the town’s annual audit report, with minor amendments. The next meeting will be scheduled in April to finalize the RFP process for future audits. Members also discussed the need to fill a committee vacancy and will follow up on the selection process.
The News Production System (NPS)
was used to produce the Municipal Meeting Recaps. NPS, developed by the Wayland Post, includes the use of artificial intelligence and automation programs. These programs are used to record, transcribe, and summarize town government meetings and events. Municipal Meeting Recaps are reviewed and edited by Wayland Post staff members prior to publication. Many of the meeting recordings were produced by WayCAM, whose government on-demand recordings can be viewed at www.waycam.tv/government-on-demand.
