HomeMy WebLinkAbout9594 2023 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, 2023, 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 6, 2024, 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 6, 2024
Page 2
Current Year Finding
Year End Accruals
Finding:
During our current year audit, adjustments were necessary to record unrecorded liabilities at year end.
Recommendation:
We recommend the Town record accruals at year end.
Prior Year Findings Resolved
Fixed Asset Accounting
Finding:
During the previous year audit, there were three assets identified that the Town had purchased that
were not included in the fixed asset records.
Resolution:
During the current year audit, all fixed asset additions were included in the fixed asset records.
Deficit Assigned Fund Balance - Highway Town-Wide Fund
Finding:
During the previous 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 prior year with additional funding of the reserve
accounts, which contributed to the appropriated amount exceeding the funds available.
Resolution:
The reserves and the amounts appropriated in next year’s budget were within the amounts the Town
had available for the current year.
DISCUSSION ITEM
Impact of Future Standards of the Governmental Accounting Standards Board (GASB)
• 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 6, 2024
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 6, 2024