Newton Audit Finds Clean Opinion but Flags Repeat IT Security Gaps

NEWTON — December 10, 2025 — Newton Finance Committee receives clean fiscal year 2025 audit opinion, with caveats on IT controls. Independent auditors from CLA presented the annual comprehensive financial report at the December 10 meeting, confirming an unmodified opinion for the city while flagging two management letter findings: a repeat citation for the lack of general ledger integration of police detail payroll, now expected to be resolved by summer 2026 through a new vendor called On Duty, and the absence of a formal IT disaster recovery plan, a finding committee member Alex noted has appeared in audit letters since at least 2012. The city's general fund unassigned balance stands at roughly $70 million, or 12 percent of total revenues, below the GFOA-recommended 16.7 percent but within S&P's 12 percent benchmark and well inside the agency's preferred 15-to-35 percent total fund balance range, at 23.7 percent. Newton's net pension liability fell by approximately $32 million year over year to $264 million, driven by strong calendar-year 2024 investment returns, while the OPEB liability held nearly flat at $473 million. The committee set its next CLA meeting for April 8, 2026.