The regional School Administrative Unit for the Suncook area has been behind on its financial audits for the past four years, causing financial complications for the towns that fund its operations.

The delay in the audits and a lack of communication about finances has made it difficult for towns to understand how money is being spent, leaving many towns in a state of uncertainty.

“We’ve fallen behind and we have a really good plan in place to get caught up,” said Patty Sherman, co-superintendent of SAU 53. “I would anticipate that happening soon.”

The most recent financial audit report available is from 2018. The audit delays were due to a staff shortage caused by the COVID-19 pandemic, which also resulted in many people being absent from the office, Sherman said.

SAU 53 is in charge of the administration for schools five towns: Pembroke, Allenstown, Chichester, Epsom, and Deerfield. It is funded by these municipalities and is in charge of managing the school district’s finances, which include multiple schools and thousands of students. Sherman is one of two co-superintendents, who oversees Pembroke and Deerfield. Jack Finlay was recently named the finalist for the other co-superintendent position that works directly with Allenstown, Chichester and Epsom. 

The SAU’s current budget is $1.9 million and is not posted online. 

The issue of the SAU’s financial audits was raised in January at a Pembroke budget committee meeting, when Gerry Fleury, vice-chairman of the budget committee, requested a copy of the audits. After several weeks, he was informed that the audit reports had not been completed.

“I think the SAU seems to have been blindsided; I don’t think that they were aware that they had to be doing this,” Fleury said. “I don’t think they understood the importance of it.”

Sherman said the SAU has submitted all required documents for the 2019 audit and is currently waiting for an auditing firm to complete the report. It anticipates that all school districts will receive the 2019 audits soon.

The lack of audits has affected building projects and upgrades. Allenstown struggled to obtain a bond to be able to build a new school because they didn’t have current audits. Sherman stated that Allenstown’s 2020 audit was recently completed.

The funds required to complete the numerous audits have been set aside in the budget because the SAU has a contract with an auditor that is included in their yearly budgets. Any funds that have accumulated over the years are now available to finish the backlog of financial audits.

Backlogged audits can lead to a lack of transparency and accountability in the management of public funds, town officials said.

When audits are not completed on time, it becomes difficult to identify discrepancies and correct them so that they do not become a recurring issue, said Meadow Wysocki, selectwoman and budget committee member of the town of Epsom.

Incomplete audits can also cause delays in obtaining necessary funding or grants for the school district.

“Unfortunately, because of the volume of what is going on at the SAU, we’ve been having some difficulty getting some information from them when we requested,” Wysocki explained. “We’ve been giving them an opportunity to get themselves caught up and then we will be following up with them on a regular basis”

Although the SAU has a plan in place to complete the audits, Fleury is skeptical that they will be able to complete four years worth of audits for all five towns in a short period of time.

Sherman said a consultant has been hired to assist in catching up on the backlog and preventing the same situation from arising again.

“We have everything digitized, and we have staff in place who will be able to keep up in the future,” Sherman said.

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