The Board of Selectmen requested the state audit in response to citizens’ outcry over budget shortfalls and the need for Proposition 2 1⁄2 override elections during the summer of 2023.

The state Department of Revenue Division of Local Services (DLS) Financial Management Resource Bureau conducted the audit, which encompassed Dudley’s government structure, fiscal planning, financial policies, information technology, and operational practices of its financial offices.

Over the course of five months, the state review team interviewed elected and appointed officials, department heads, and municipal office staff. The team examined town documents and financial data, including town bylaws, locally accepted statutes, special acts, annual budgets, warrant articles, tax recapitulations, balance sheets, receivable reports, revenues and expenditures, and independent audit reports.

The report was published on December 26, 2025 identified 16 areas of concern and made recommendations for changes to practices.

The DLS recommendations included converting the elected Treasurer/Collector to appointed, forming the government study committee to address the town’s decentralized form of governing, creating a budget bylaw, a revolving fund review, an update to the federal Fiscal Recovery Funds Compliance report, discontinued use of reserves and one-time revenue for the operating budget, discontinue Treasurer’s use of a manual cashbook, and a cleanup of the Treasurer’s cashbook and Tax Title/Foreclosure records.

 “This review was initiated at the request of a group of residents who raised concerns about town audits, override votes, and called for a general forensic audit,” Town Administrator Jonathan Ruda said. “It’s important to recognize that the recommendations in the state report are a direct result of that public demand for greater transparency and accountability.”

At the Board of Selectmen’s January 27 meeting, Mr. Ruda presented an action plan that sets goals, identifies involved parties, establishes a timeline, and key performance indicators for each of the 16 items identified by the state. 

“The Board of Selectmen has voted to move forward with the plan to implement 16 recommendations from the Financial Management Review conducted by the state,” Mr. Ruda said. “These recommendations provide a clear path forward to strengthen the town’s financial practices and governance.”

One key recommendation among the 16 is to create an independent Government StudyCommittee. Selectmen said they will follow the DLS recommendation by forming a committee of qualified individuals who possess no predetermined agenda, and task them with objectively evaluating the town’s government structure by, in part, interviewing officials, surveying residents, and examining practices in other communities.

According to the Action Plan adopted by selectmen, this committee is to be established by May 2025 and have its work finished with a report of findings by February 2026.

“The Board of Selectmen is committed to following through with these recommendations and will ensure the Government Study Committee has the support and resources needed to carry out their work,” Mr. Ruda said, adding, “We believe this process will help improve policies, rebuild trust, and better position the town for the future. Given that the call for this review came from the community itself, it is now important for all residents, including those who pushed for the review, to support the findings and the work ahead to move the town forward.”