Annual Financial Report

Public sector organizations navigate a complex landscape influenced by regulatory mandates, budget limitations, and changing workforce needs. Effectively managing financial performance, reducing risks, and maximizing resource efficiency—while ensuring transparency and accountability—demands a high level of expertise.

According to RSA 41:31-a through RSA 41:31-d, each municipality must conduct an annual audit of the accounts managed by any officer or agent handling funds. The audit can be performed by an elected auditor, a board of auditors, or a certified public accountant (CPA).

Financial audits are crucial for safeguarding the integrity of public finances and maintaining citizens' trust in their elected officials. They offer independent assurance that financial data is accurate and trustworthy. Transparency and accountability in government are key to demonstrating that public services are being delivered efficiently, ethically, and fairly.

Audited financial statements represent the highest level of assurance a CPA (auditor) can provide. They are designed to give users confidence in the accuracy and reliability of the financial statements. The audit’s objective is to gain an understanding of the entity’s internal controls, assess the risk of fraud, and verify the amounts and disclosures presented in the financial statements. This is accomplished by obtaining audit evidence through methods such as inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures, and other necessary procedures.

Transparency and accountability in government audits are vital to demonstrate that public functions are being performed efficiently, ethically, and fairly. Auditors must carry out their work within the boundaries of applicable laws, rules, and confidentiality requirements, while maintaining independence and objectivity. They are expected to uphold the highest standards of personal integrity, honesty, and courage throughout the audit process.