Town treasurer: 2023 audit complete, $4.5M property tax and conservation trust funds released; staff seeks 2024 audit engagement

WELLINGTON, Colo. — The Town of Wellington's finance director reported to the board July 22 that independent auditors completed the audit of the 2023 financial statements, the state auditor accepted the reports and delayed revenues — including a lump‑sum Larimer County property‑tax payment — have been released to the town. Trustees approved the consent agenda that included authorization for the town treasurer to sign an engagement letter for the 2024 audit.

Nick Redavid, the town's finance director and treasurer, told trustees the audit of financial statements for the fiscal year ending Dec. 31, 2023, was completed June 26, 2025 and accepted by the Colorado Office of the State Auditor. He said the town received a $2.2 million lump payment from Larimer County in May and that additional disbursements through June and July brought year‑to‑date collections to about $4.5 million. The Department of Local Affairs will release about $477,000 in conservation trust funds being held since June 2022, he said.

Redavid summarized the auditors' management's discussion and analysis (MD&A) and said the independent auditor opined that the town's governmental activities, business‑type activities and each major fund were presented fairly in accordance with generally accepted accounting principles. He said total net position for all funds at Dec. 31, 2023 was about $110.2 million, an increase of roughly $2.7 million from the prior year; net investment in capital assets was about $67.1 million and unrestricted funds totaled roughly $37.5 million.

Redavid recommended the board authorize an engagement letter with Hinkle and Company for the fiscal‑year 2024 audit. He told trustees that because the town expended federal ARPA funds for a 2024 water treatment plant project, a single audit will be required; the estimated fee was $29,800 for the audit and an additional fee not to exceed $6,100 for the single audit. He explained the town will submit a formal request for extension of time to file the 2024 audit by the July 31 deadline to avoid disruptions to revenue disbursements while the audit proceeds.

The consent agenda, approved by roll call, included the resolution authorizing the treasurer to sign Hinkle and Company's engagement letter for the 2024 audit and a separate resolution for a contract for roof replacement at the water reclamation facility. Trustees did not direct changes to budgeted programs or projects based on the audit opinion; Redavid said audited 2023 balances will be used to set beginning 2026 budget estimates.

Trustees commended Redavid and finance staff for the work catching up prior audits and for rebuilding the finance department after turnover; no formal follow‑up direction was taken beyond authorizing the treasurer to execute the 2024 audit engagement letter.