Finding Reference Number: 2020-01 ? Material Weakness in Internal Control Over Financial ReportingDescription of Finding:The Town should have internal controls over financial reporting that provides reasonable assurance that the accounting records can be relied upon and used to prepare the basic financial statements and related notes in conformity with accounting principles generally accepted in the United States of America. Having effective internal controls and procedures over financial reporting will ensure that the financial information is being accurately presented and allow the governing body to make sound financial decisions on a timely basis.There were multiple rounds of revisions to the trial balances before a final trial balance was able to be provided. Significant effort was expended identifying required information and corresponding adjustments and reconciliations. The audit process was delayed while Town personnel and audit staff worked towards a complete set of financial statements. Material journal entries were required to ensure the financial statements were properly stated in accordance with Generally Accepted Accounting Principles.Some of the deficiencies in the Town?s internal control over financial reporting processes are described below:o The interfund balances between the General Fund and the other funds were not reconciled on a timely basis.o The Town and the Board of Education do not currently have formalized accounting policies and procedures manuals detailing the daily, monthly, quarterly, and year-end closing procedures.Statement of Concurrence or Nonconcurrence:The Town and Board of Education agrees with this finding.Corrective Action:The Town agrees with the finding regarding internal control over financial reporting. The Town has a new Finance Director and Treasurer and has engaged additional accounting assistance to develop policies and procedures and ensure that controls are in place to ensure that the financial records are reported accurately and timely.Name of Contact Person:Cynthia Varricchio, MBA, Director of Finance and School Business Operations, (860) 889-6098, varricchioc@prestonschools.orgProjected Completion Date: June 30, 2023