Town receives top marks on latest financial audit

An independent auditor has given Canton’s 2015 financial books a superlative rating and commended the town for its top bond rating, high level of cash reserves, and workable plan to meet its pension liability.

Roselli, Clark & Associates gave the town a “Clear Opinion,” the highest grade available, in its review of the FY15 financial record, ending June 30, 2015. This marks the third year that the town has been given a clear opinion on its financial books.

Tony Roselli, company partner, said Canton’s financial trends are excellent and its metrics and credit rating exceed state averages. The town has been rewarded with the highest attainable bond rating (AAA) and has maintained this rating for nine years.

Roselli said all of this positive financial news places Canton in the top 10 percent of communities in the state with respect to investment appeal.

He noted that the town has reached a 60 percent funding level for its pension liability with a goal of reaching 100 percent by 2032. The only stumbling block in the town’s long-range planning efforts, according to Roselli, is the estimated $90 million in Other Post-Employment Benefits (OPEB), consisting of health care coverage for retired town employees. This OPEB gap is common among all Massachusetts communities, and according to Finance Director Jim Murgia, Governor Charlie Baker is expected to make some future recommendations for all cities and towns to help solve this problem. Murgia said the town is making annual contributions and likely will increase its payments toward OPEB as the pension liability fund gap decreases.

Roselli said the town should be commended for asking auditors to go above a standard audit for 10 consecutive years. Canton is one of 25 communities out of 351 in the commonwealth that has achieved this auditing standard.

Roselli only had minor recommendations for future financial reporting steps in his report. Selectmen Chairman Bob Burr said the town’s continued financial excellence is a “tremendous story” and is due to the hard work of department heads, the Finance and Capital Outlay committees, Murgia and the Finance Department, and Canton taxpayers …

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Posted by Mike Berger on Oct 7 2016. Filed under News, Town Government. Both comments and pings are currently closed.