Oak Bluffs finally closed the books on fiscal year 2010 on Tuesday after selectmen conducted an exit interview with town auditors from Powers and Sullivan.

It wasn’t an altogether damning report from the accounting firm given the town’s recent fiscal woes but accountant Jim Powers did single out some areas that may still need to be remedied.

“We didn’t find any huge fundamental flaws in the system,” Mr. Powers told selectmen. “One of the things we did comment on is to develop policies and procedures in the case of extended absences.”

The town’s accounting was hampered last year by the long illness of its former finance director Paul Manzi, who died in October.

“There’s that void that needs to be filled and without that road map, how do we do purchasing, payrolls, year-end accruals and keep things rolling? If those policies were there I feel like it would have done a lot to alleviate some of the gaps,” he said.

On the positive side, Mr. Powers said that the more than $1 million in the town’s stabilization fund worked to its advantage. Mr. Powers also said that the town is in a much better position to complete its audit for fiscal year 2011 in a more timely manner. Looking ahead, the town faces a difficult 2012 budget with town officials eyeing nearly $300,000 in cuts in the already tight budget and a negative free cash balance approaching $1 million.

Selectmen approved an engagement letter with Powers and Sullivan to conduct its audit for fiscal year 2011.

The board also approved a one-day beer and wine permit for an event on August 20 on Waban Park for the Massachusetts Black Lawyers Association, as well as a request to hold the third annual Cycle Martha’s Vineyard Bicycle Challenge on Oct. 1 and a fundraiser at the Shepherd’s Fine ArtSpace this Friday to benefit Martha’s Vineyard Youth Tennis.

Selectmen also appointed Terry Appenzellar to the town conservation commission.

Finally, they applauded the good behavior of the fishermen who washed ashore this past weekend for the monster shark tournament.

“I went down to the harbor Saturday night and it seemed to be quite orderly,” said selectman Gail Barmakian. “I was pleasantly surprised.”

“It was a great weekend for Oak Bluffs businesses,” said selectman Mike Santoro, who owns the Lookout Tavern and Seasons Pub.

Selectmen went into executive session at the close of the meeting to discuss “the reputation, character, physical condition or mental health, rather than professional competence of, an individual, or to discuss the discipline or dismissal of, or complaints or charges brought against, a public officer,” according to board chairman Kathy Burton, using language from the Massachusetts Open Meeting Law.