No material weaknesses found in Dewey audit

Dewey Beach commissioners voted unanimously Aug. 16, to approve the draft audit for the year ending March 31, 2024, as recommended by the audit committee.

The audit did not identify any deficiencies in internal control that were considered to be material weaknesses, said Dan Kenney of independent auditor Mitchell Titus, who offered some items for consideration.

The most important, he said, was that the town should prepare monthly statements in accordance with the way financials are prepared for consistency, which may require additional resources.

The town prepares one trial balance to provide monthly reports, he said, and recommended that the general fund and government-wide information be prepared to be consistent with audited financial statements and generally accepted accounting principles.

Regarding previous year findings, he said the town has completed the IT audit. This will be an ongoing process, he said, as software upgrades are required regularly. Budget controls are resolved, he said, and a fund balance is in progress.

The audit showed that as of March 31, 2024, governmental activity assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $16,472,271, of which $7,382,724 is unrestricted. Further, the town's fund balances increased by $1,312,697 during the year, mainly due to the overall revenues.

Because of the town’s strong financial management and an excess balance in the unassigned fund, Commissioner Gary Persinger said almost $1 million was able to be allocated to the town hall construction project, so the town is well set up for bearing the expense.

Kenney offered to modify a class he teaches on governmental accounting for commissioners to present an overview and reasoning on accounting practice. Mayor Bill Stevens said this could possibly be held as a public workshop in October.

Dewey’s fiscal year runs from April 1 through March 31.