Wellington receives clean audit for 2022 financial statements

The Wellington Town Board of Trustees heard a presentation March 24 that the town's fiscal year 2022 financial statements have earned a clean opinion from independent auditors.

Nick Redavid, finance director and town treasurer, told the board the independent auditors' report for the year ending Dec. 31, 2022, was completed Jan. 30 and has been accepted by the Colorado Office of the State Auditor. He said the report is included in the board packet and posted on the finance department page of the town website.

The audit shows the town's total net position for all funds on Dec. 31, 2022, at about $107.5 million, an increase of roughly $3.8 million over the previous year. Net investment in capital assets (streets, buildings and equipment) was roughly $67.1 million, nearly 62% of total net position. Redavid said restricted funds for emergencies, streets and parks totaled about $7.5 million and that about $32.8 million were unrestricted funds available to meet obligations.

Redavid described the enterprise fund net position at year end as approximately $73.6 million with a positive change of about $1.9 million. He said outstanding debt in governmental funds decreased by roughly $250,000 while enterprise fund debt increased by about $42 million, largely because of construction of the wastewater treatment plant.

Redavid said auditors only issue opinions on the basic financial statements (statement of net position, statement of activities, balance sheets and related notes). He told trustees that, because auditors gave a clean opinion that the basic financial statements were presented fairly in accordance with generally accepted accounting principles, no adjustments to current budgeted programs or projects were necessary at this time.

Trustees asked questions about line items and minor typographical errors in the packet. Trustee Teets asked about a reconciliation figure on page 63; Redavid said he would look up that specific amount and follow up. Multiple trustees, including Trustee Moore, Trustee Kim and Trustee Wiegand, praised staff for securing the clean opinion after prior turnover in the finance department and for the timely work to get audits up to date.

Redavid and the board said the town's auditor for the 2022 engagement was Hinkle and Company, which collaborated with consultant Don Rhodes and previously submitted and revised the 2021 audit through Mayberry and Company, LLC. Redavid said the town is continuing to submit documentation for the 2023 audit and is working toward timely completion of subsequent years.

The board did not take any formal vote on the audit presentation itself; the presentation was informational and followed by trustee comments and questions.