ADAMS, Mass. — The town received an essentially "clean report" last week from its independent auditor, Adelson & Co., for fiscal year 2024, which ended last June 30. 

 

"We have issued a clean opinion on your fund financial statements, so all of the accounting is accurate," David M. Irwin Jr. told the Board of Selectmen at its regular meeting. "We have good, clean opinion on general funds, special revenue funds, trust funds, fiduciary funds, everything that is fine. But at the governmentwide statement level, the town is required to report certain liabilities on its balance sheet in accordance with the Governmental Accounting Standards Board. One of those is that pension liability."

 

That forecasted liability is an actuary calculation by the state Public Employee Retirement Administration Commission. GASB requires that the proportionate share of that unfunded liability be put on the balance sheet, which for Adams is $9.8 million.

 

"For us to issue a clean opinion that that estimate that is put on your balance sheet is accurate, the Adams retirement system really has to be audited," Irwin said. That did not lie within Adelson's purview so the firm had to disclaim any opinion.

 

"Outside of disclaiming that opinion, all the accounting was fine, no material weaknesses, no significant deficiencies of any sort," he said. "The town did a good job with its accounting for fiscal year 2024."

 

Chair John Duval asked if there was any risk to the town if the retirement fund was not audited. When GASB began requiring the other post-employment benefits, or OPEB, to be included on balance sheets, rather than "buried" in audit notes, Irwin said he thought it could have had some affect. 

 

"But there was no impact on the bond rating at that point, so that would have been the only negative that I could have seen," he said. "It has an impact with the town's ability to go after debt or go after grants."