|Jay Pike||Citizen Representative||
|Nancy Deluca||School Committee Representative||
|Carol Nestler||Board of Selectmen Representative||
|Patrick McCarthy||Finance Committee Representative||
|Laura Fogel||Citizen Representative||
Operational Audit: Background and History
[Updated January 6, 2017]
In November of 2015, Special Town Meeting voted to appropriate the sum of $70,000 for the purposes of funding an operational audit of the Town of Easton and Easton Public Schools. Development of the scope of work for this audit was delegated to the Audit Committee. The Committee produced a final scope for approval by the Selectmen in June of 2016. In July, a request for proposals was issued and responses were received in August. In September, a review committee consisting of members of the Audit Committee, a School Committee representative, the Assistant Town Administrator, and the Town Accountant recommended the most advantageous proposal to Town Administrator and Chief Procurement Officer David Colton, who in turn recommended award of the contract to the Board of Selectmen. On September 26, 2016, the Selectmen awarded the contract for this operational audit in the amount of $69,000 to The Abrahams Group from Framingham, MA. Work on the operational audit began in October 2016 and is ongoing. Documents pertinent to the operational audit are available herein:
Contract between Town of Easton and The Abrahams Group, executed on September 26, 2016
Non-Price Proposal submitted by The Abrahams Group
Progress Report submitted by the Abrahams Group (December 2016)
There is hereby established an Audit Committee consisting of five members. Such members shall include: one (1) current member from each of the Board of Selectmen, Finance Committee and School Committee, appointed as determined by the Chair of the respective board or committee; plus two (2) at-large members appointed by the Board of Selectmen. The at-large members shall not be a member of another board or committee, or an officer, official or paid employee of the Town. All members of the Audit Committee shall have, at a minimum, a working familiarity with basic finance and accounting practices; appointments should be made to provide that at least two members of the Audit Committee be Certified Public Accountants or otherwise have accounting or related financial management expertise.
Audit Committee members appointed by the Board of Selectmen shall serve for a term of two (2) years, except that one (1) of the initial appointees shall serve for a term of three (3) years, thereby providing that one such member's term will expire on a annual basis. All other members shall serve a term of one (1) year. Any vacancy occurring in the Audit Committee shall be filled by the appropriate appointing authority for the balance of the unexpired term. Terms shall coincide with the fiscal year, i.e. effective July 1 and expiring June 30, to correspond with the period of time for which the town’s audits are conducted.
At the first meeting after the start of each new fiscal year, the Audit Committee shall conduct an organizational meeting to elect from its members a chair, a vice-chair and a secretary.
Role of Audit Committee
The Audit Committee shall serve as advisor to the Board of Selectmen with respect to the town's financial management systems and controls and annual audit. In addition, the Audit Committee shall make an annual report to the Town on matters within the scope of its jurisdiction. Specific duties shall include, but are not limited to, the following:
(1) Make recommendations to the Board of Selectmen on the selection of, and scope of services for, an independent auditor.
(2) Review the annual financial statements and management reports prepared by the independent auditor and make recommendations with respect thereto.
(3) Make recommendations for areas of operations where expanded scope audits or review of the internal controls may be appropriate.
(4) Review and make recommendations with respect to the Town's financial management practices and controls; through the Town Administrator, review with appropriate boards and departments opportunities to improve such practices and controls.
(5) Report to the Board of Selectmen on the status of recommendations the Committee and/or independent auditor has made during the preceding twelve months.
(6) Submit a summary of their work for the preceding calendar year for inclusion in the Town’s Annual Report.