HomeMy WebLinkAbout9594 2022 Management Comment LetterMANAGEMENT COMMENT LETTER
Town Board
Town of Groton
Groton, New York
In planning and performing our audit of the financial statements of each major fund and the
aggregate remaining fund information of the Town of Groton (the Town) as of and for the year
ended December 31, 2022, in accordance with the auditing standards generally accepted in the
United States of America (U.S. GAAP), we considered the Town’s internal control over financial
reporting (internal control) as a basis for designing our auditing procedures for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the Town’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the Town’s financial statements will not be prevented, or detected and
corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
This letter does not affect our report dated on August 21, 2023, the financial statements of the Town.
OTHER MATTERS
During the current year audit, we became aware of the following conditions that provide an
opportunity for strengthening internal controls and operating efficiency of the Town.
Insero & Co. CPA s, LLP
The Highest Standard | (800) 232-9547 | www.inserocpa.com
Town of Groton
August 21, 2023
Page 2
Deficit Assigned Fund Balance - Highway Town-Wide Fund
Finding:
During the current year audit, the approved 2023 budgeted appropriated fund balance of $80,000
was in excess of available fund balance of $30,420 at December 31, 2022. The assigned fund
balance in this fund was significantly reduced during the current year with additional funding of the
reserve accounts, which contributed to the appropriated amount exceeding the funds available.
Recommendation:
We recommend Town management review the projected available fund balance amounts in each
fund as part of their budgeting process and adjust both the amounts set aside for reserves and the
amounts appropriated in next year’s budget to ensure they are within the amounts they have
available.
Fixed Asset Accounting
Finding:
During our current year audit we identified three assets that the Town had purchased that were not
included in the fixed asset records. It should be noted that the Town has been working to improve
its fixed asset tracking and record keeping procedures throughout the past year.
Recommendation:
We recommend Town management perform a comprehensive review of the expense accounts each
year to identify any fixed asset purchases that have not already been included in the fixed asset
records.
DISCUSSION ITEM
Impact of Future Standards of the Governmental Accounting Standards Board (GASB)
GASB has issued Statement No. 96, “Subscription-Based Information Technology
Arrangements” effective for the year ending December 31, 2023.
GASB has issued Statement No. 101, “Compensated Absences,” effective for the year ending
December 31, 2024.
Town management should consider the impact these pronouncements may have on its financial
statements and implement them as applicable and when material.
Town of Groton
August 21, 2023
Page 3
This communication is intended solely for the information and use of management, Town Board,
and others within the Town of Groton and is not intended to be, and should not be, used by anyone
other than these specified parties.
Respectfully submitted,
Insero & Co. CPAs, LLP
Certified Public Accountants
Ithaca, New York
August 21, 2023