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Auditors give Alta clean opinion; note one capital‑projects overspend tied to timing of purchase
Summary
Independent auditors gave Alta an unmodified (clean) opinion on FY2025 financial statements, found internal controls effective, and reported a state‑compliance finding: overspending in the capital projects fund because a property purchase was recorded on June 30 instead of being accrued into FY25.
A third‑party auditor presented the Town of Alta’s FY2025 audit at the Dec. 10 meeting and issued an unmodified (clean) opinion that the financial statements fairly present the town’s position in accordance with U.S. GAAP. The auditor also reported that internal controls are designed and operating effectively but flagged one compliance issue related to the capital projects fund.
Auditor Ron Stewart of the firm contracted for the audit explained the tests performed: third‑party confirmations for cash, taxes and debt; invoice and fixed‑asset testing; recalculation of accruals; and analytical reviews. "In our opinion, the financial statements... present fairly in all material respects..." he told the council, summarizing the independent auditors’ report.
Finding: timing of capital purchase
The single compliance finding relates to an overspend in the capital projects fund. The auditor said the town wrote a check on June 30 for the purchase of a property (Our Lady of the Snows) that the town intended to budget for in FY2026, not FY2025. Accounting rules require the expense be recorded in the fiscal year when the liability was incurred; staff agreed the transaction should have been accrued into FY25 and will address the budget amendment.
Council action and discussion
Council members asked about the audit sample sizes, acceptable error/materiality thresholds and whether more frequent financial updates during the year would be feasible. Auditors said they sampled roughly 60 invoices and apply a materiality threshold developed during planning; they also said the year‑end timing and county delays in property‑tax figures make producing fully trued accruals mid‑year difficult. The council voted to accept the audit and the FY2025 financial statements on a roll‑call vote.
Next steps
- Staff will prepare an amended budget entry to cover the capital projects overspend and will present the corrective entry in an upcoming meeting. - Council discussed whether to increase interim reporting or use forecasted estimates to shorten the time between year‑end events and the audit presentation.
