Auditor issues clean opinion; town manager and finance director kick off 2026 budget process

Carbondale’s external auditor delivered a clean (unmodified) opinion on the town’s 2024 financial statements and staff used the meeting to begin the 2026 budget conversation.

Paul Bachus of McMahon & Associates told trustees the audit produced an independent auditor’s report with no disagreements and that the town’s financial statements are materially correct. He said the firm prepared 533 work papers and noted three correcting journal entries: closing the sales-and-use tax fund into the appropriate account, recording a budgeted transfer from the capital fund to the recreation sales-and-use fund, and an arbitrage liability related to the 2022 bond proceeds.

Bachus offered two operational recommendations for town staff: consider a vendor-management portal to reduce risk from changes to vendor payment or wire-transfer instructions, and ensure department-head credit-card transactions receive a review by the finance director during staff transitions.

During the same agenda item, the town manager and new finance director briefed trustees on the 2026 budget timetable and a board-priorities list created at an August retreat. Staff said department directors have already met with finance to begin line-item reviews, and the board was invited to a work session next week to rank priorities and discuss larger-ticket items such as housing, transportation and downtown development. The manager advised trustees that the earlier the board flags new priorities, the easier it will be to incorporate them into the budget.

No board action was required to accept the audit; auditors file the report with relevant state and federal entities. Trustees thanked interim finance staff for their support during a recent staffing transition and expressed appreciation for having the audit and a clear budget timeline ahead of the winter budget cycle.