Corrective Action Plan to Address Audit Issues

Independent Auditor’s Opinion on Financial Statements

Rhode Island General Law 45-10-6.1 requires that if an auditor conducting the post audit of a municipality or regional school district expresses a modified opinion on the financial statements (i.e., qualified, adverse, or disclaimer of opinion), the chief finance officer shall:

• Prepare a detailed corrective action plan and timetable which addresses the issue(s) which caused the auditor to issue a modification to the opinion on the financial statements; and
• Submit the plan to the city or town council, state Auditor General, and state Director of Revenue, within 45 days of receipt of the audited financial report.

Independent Auditor’s Findings and Recommendations

Rhode Island General Law 45-10-6.1 also requires that:

• All findings and recommendations reported by the auditors, including those reported in a separate letter, be submitted to the state Auditor General and state Director of Revenue;
• The chief finance officer of the municipality shall:
• Prepare a corrective action plan and timetable for all findings and recommendations; and
• Submit the plan to the city or town council, state Auditor General, and state Director of Revenue, within 45 days of receipt of a written report or letter of findings and recommendations from the auditors.
• All management letters shall be public records.