Financial Audits

Financial Audits

Each year, the Town completes an independent financial audit to confirm that our financial records are accurate, our internal controls are functioning as intended, and our reporting meets required accounting standards. Audits are an important tool for transparency and accountability—helping ensure public funds are managed responsibly and that Town Meeting, residents, and other stakeholders can rely on the Town’s financial information when decisions are made.

What is an audit?

A financial audit is an independent, objective review of the Town’s financial statements and selected financial practices. Audits are conducted by a licensed public accounting firm that is not affiliated with the Town.

Auditors examine financial records, test transactions, assess internal controls, and evaluate whether the Town’s financial statements fairly present its financial position in accordance with established accounting standards. The audit process provides an added layer of oversight beyond day-to-day financial management.

Accessing audit reports of the financial statements

Audit reports are posted on this page as they are finalized and accepted.

What is a financial statement?

A financial statement is a set of formal reports prepared by the Town that summarize financial activity and condition over a specific period—typically a fiscal year. These statements are produced by Town staff as part of regular financial operations and include information such as revenues, expenditures, assets, liabilities, and fund balances.

Financial statements:

  • Are prepared by the Town

  • Reflect the Town’s financial activity for the year

  • Provide the foundation for budgeting, planning, and reporting

Audit vs. financial statement: what’s the difference?

While closely related, audits and financial statements serve different purposes:

  • Financial Statements show what the Town reports financially

  • Audits evaluate how reliable those reports are

In simple terms:

  • The Town prepares the financial statements

  • Independent auditors review and verify those statements

An audit does not create the financial statements—it provides professional assurance that the statements are accurate, complete, and prepared in accordance with applicable standards.

Why audits matter

Independent audits help the Town:

  • Maintain public trust through transparent, objective review

  • Strengthen financial stewardship by identifying risks and opportunities for improvement

  • Support long-term planning by ensuring decision-makers have reliable financial data

  • Meet requirements tied to state and federal regulations, grant funding, and municipal finance practices

What is reviewed

While the specific scope varies by year, audits commonly include:

  • Annual financial statements and required disclosures

  • Cash handling, purchasing, payroll, and revenue processes

  • Internal controls and separation of duties

  • Compliance testing for selected laws, regulations, and grant requirements

  • Review of major funds and significant financial activity during the fiscal year

What you can expect in the Town’s audit materials

Audit information typically includes:

  • Annual Comprehensive Financial Report (ACFR) (or Town Financial Statements)

  • Management Letter or internal control recommendations (when issued)

  • Single Audit reports (when required due to federal awards exceeding applicable thresholds)

  • Presentation or summary to the Select Board and Finance Committee (as scheduled)

How the Town uses audit results

Audit findings—if any—are reviewed by Town management and used to strengthen processes, improve documentation, refine internal controls, and inform training and policy updates. The goal is continuous improvement: protecting the Town’s financial integrity while delivering efficient, high-quality service to residents.

If you have questions about the Town’s audits or the reports posted here, please contact the Town Manager’s Office or the Treasurer/Collector’s Office.