Wellington advisory board reviews draft financial management policies, debates signing thresholds

WELLINGTON, Colo. — The Town of Wellington Finance Advisory Board on July 28 reviewed a comprehensive first draft of consolidated financial management policies and asked staff to collect further feedback and return the package to the Board of Trustees for adoption.

Nick Redavid, finance director and treasurer for the Town of Wellington, presented “draft number 1” and said the document gathers existing fund, budget, purchasing and contract rules into a single policy intended to increase transparency and protect taxpayer funds. “What you see in front of you is draft number 1,” Redavid said.

The draft pulls guidance from the Government Finance Officers Association and addresses auditing, fund balance targets, investments, budgeting, debt and capital project accounting, grants and purchasing. It sets reserve guidelines the board discussed during the meeting: an unassigned-reserve target of 33% of regular operating expenditures or 110% of debt service (whichever is greater), enterprise-fund reserves equal to 90 days of operating expenditures and a capital reserve equal to one year’s depreciation. The board heard that the town’s 2023 audit has…