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The Supervisor and the Board did not ensure the Director maintained complete and accurate accounting records for capital project activities. For example, the December 2024 monthly report for a park pavilion capital project included expenditures totaling over $4.4 million. A Board member stated that the Town demolished and replaced the pavilion in the park and installed an accessible sidewalk and path in 2021. He did not know why the December 2024 monthly report showed expenditures that exceeded $4.4 million for this project. The Director determined that over $4.3 million was accounted for incorrectly in the pavilion capital project instead of the highway building capital project and the correct cost of the pavilion capital project was approximately $127,000. However, when we reviewed the December 2023 monthly report, one year earlier, we identified that the same error was included. Therefore, we question whether the Board reviewed these reports because if Board members had, they might have identified such a large error. Neither the Director nor the bookkeeper reconciled the 2024 accounting records with the capital projects bank statements. The Director and bookkeeper both confirmed that they did not perform bank reconciliations because they could not record the 2024 beginning balances in the Town’s financial software until the 2023 records were closed. At the time of our review, the 2023 accounting records were not closed because they were waiting for the certified public accountant (CPA) to recommend year-end adjustments. Because bank reconciliations were not up to date, we reviewed the most recent capital projects bank reconciliation dated December 31, 2023. The combined capital projects trial balance on December 31, 2023 reported approximately $489,000 in net cash. However, two capital projects bank statements only showed a total of over $171,000 or $318,000 less than cash reported in the accounting records. As a result of our inquiry, the Director transferred approximately $318,000 from the operating fund to the capital projects fund on December 18, 2024 to reconcile the cash. On December 27, 2024, the Supervisor filed and certified the accuracy of the 2023 Annual Financial Report (AFR) and reported total capital projects cash of approximately $5 million. The Director did not provide us with documentation or an explanation for the $318,000 difference. Furthermore, the 2023 trial balance for the capital projects fund showed negative cash balances indicating that expenditures were incurred for a project without money available to fund project expenditures. Due to the deficiencies with the capital projects records, the 2023 AFR was not filed with OSC until December 27, 2024 or eight months after the filing deadline. Additionally, the 2023 financial statements and management letter had not been released as of the end of our fieldwork on January 23, 2025, or more than one year after the fiscal year end. A representative from the Town’s CPA stated that the delay was attributed to obtaining timely information from Town officials and the deficiencies with the capital projects records. Subsequent to the end of our fieldwork, the Town’s audited financial statements were released on February 5, 2025. Additionally, the 2022 AFR reported capital projects expenditures totaling approximately $8.1 million. However, the 2022 capital projects fund combined trial balance reconciliation had a balance totaling $2.6 million in expenditures. The Director also provided us with the capital projects cash disbursements report totaling $766,000 for 2022. The Director did not provide us with an explanation or documentation to account for the $5.5 million difference. The Supervisor stated that the 2022 expenditures reported in the AFR would likely need to be restated and the Director provided us with the draft CPA audited financial statement report stating that the capital projects fund balance would need to be restated by $3.4 million of which $3.1 million was cash. 5