Portola Valley Embarrassed by WSJ, Failed to Audit Last 3 Years

Town Manager Says Annual Audits Not Required by Law, But Best Practice

Portola Valley has been in the news recently for failing to do an annual audit of its finances for the last three years. This has caused some embarrassment for the town, as it was recently reported in the Wall Street Journal.

The town manager, Jeremy Dennis, said that annual audits are not required by law and that since there were no indications of problems, the town decided to forgo the audits to save money. However, he admitted that annual audits are considered best practice and that the town should have done them.

Importance of Annual Audits

Most experts agree that annual audits are important for several reasons. First, they help to ensure that a town's financial records are accurate and complete. Second, they can help identify any potential problems with a town's financial management. Third, they can help to reassure residents that their tax dollars are being used properly.

Portola Valley's Financial Situation

Despite the lack of annual audits, Portola Valley's financial situation appears to be sound. The town has a healthy reserve fund and its revenues are growing. However, the town does have some long-term financial challenges, such as the need to replace its aging infrastructure.

Reaction from Residents

Residents of Portola Valley have had mixed reactions to the news that the town has not been doing annual audits. Some residents are concerned about the lack of oversight and believe that the town should do more to ensure that its finances are being managed properly. Others are more understanding and believe that the town was right to save money by forgoing the audits.

Next Steps

The town of Portola Valley is now in the process of conducting an annual audit. The audit is expected to be completed by the end of the year.