[read complete report - pdf]

Audit Objective

Determine whether Town officials:

• Implemented adequate budgeting and financial practices.
• Safeguarded computerized assets and data.

Key Findings

The Board:

• Adopted unrealistic budgets and accumulated $24 million in unsubstantiated reserves.
• Has not developed comprehensive multiyear financial and capital plans.
• Did not adopt IT policies or provide IT security awareness training to employees.

In addition, we communicated sensitive information technology (IT) control weaknesses confidentially to Town officials.

Key Recommendations

• Adopt realistic budgets that reflect the Town’s true operating needs and prior results.
• Develop comprehensive multiyear financial and capital plans to substantiate reserves.
• Develop comprehensive IT policies and a disaster recovery plan.

Town officials generally agreed with our recommendations and indicated they plan to initiate corrective action.