Fiscal ‘carelessness’ could cost Acton more than just money
FY24 financial statements — for the year ending more than a year ago, on June 30, 2024 — had not yet been completed as of July 18.
June 30 marks the end of the fiscal year for the town government. As of this date, all the financial transactions (e.g., property tax collections, salary remunerations, vendor payments, etc.) for the preceding year are totaled to determine the financial health of the town.
After the books are closed, the town’s auditors usually come on site in the fall to examine and test these transactions so they can produce audited financial statements. A key part of this process is a review of the data in the town’s financial software, the system that stores and manages the transactions.
Surprisingly, the FY24 financial statements — for the year ending more than a year ago, on June 30, 2024 — had not yet been completed as of July 18.
Why is this taking so long? It is likely because of issues with the town’s conversion to a new financial software during the middle of FY24 in October 2023. Apparently, the town went live with the new software before it was ready, and data from the old system was not properly transferred to the new system. The auditors may be having a difficult time reconciling the pre- and post-October data.
Because of conversion issues, the license of the old financial software has had to be renewed for more than a year and a half after the conversion date at an unbudgeted cost of $60,360. Furthermore, to clean up the conversion situation, the town has had to pay an outside consultant at least $89,578.03.
The results of this carelessness are serious. It is not just that the town has used $149,938 of taxpayer dollars to fix a problem that it created. Credit rating agencies will take notice. In addition, potential bond holders require audited financial statements as a condition of funding future capital projects.
Paul Macone
Grove Street
