Audit: Scheduled Presentation

Oriental's new auditor will present the audit to the Town Board at Tuesday's public meeting.

This appears to be the only important or significant topic on Tuesday's agenda. It may seem like a boring subject, but represents an opportunity for the public to hear a fresh analysis of the town's financial management strengths and weaknesses. A previous post offers my own assessment of the twenty-three items to which our auditor called particular attention.

One thing to bear in mind is that the auditing contract is not just a bilateral agreement between the town and the auditor. The North Carolina Local Government Commission (LGC) is also a party, in that the contract must be submitted to the LGC Secretary for approval. The LGC must also approve the audit, including completion of required corrections, before they will approve final invoices for payment. LGC provides a form for the contract and prescribes procedures for the audit.

This year, the LGC sent the Town of Oriental at least three letters complaining about the audit by Seiler, Zachman & Associates, PA for fiscal year ended June 30, 2008. Two of those letters complained the report was late and asked for the town's plan to correct this. The third letter identified five deficiencies requiring correction, including two items that had to be corrected before LGC would approve the final invoice. Of the five items, two related to the Water Fund.

In addition, almost four months after the end of the fiscal year, the auditing firm forwarded to the Town of Oriental five pages of "Adjusting Journal Entries." The adjustments included a credit for $3,503.48 annotated "Adjust cash to reconciled balance." Apparently this was to account for an unexplained discrepancy in cash on hand as of the date of the audit.