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Town auditors report "unmodified opinion" and no material weaknesses in 2025 audit
Summary
External auditors told council they found no significant deficiencies or material weaknesses and will issue an unmodified opinion on the town's 2025 financial statements; the audit also found the town did not meet the federal single-audit threshold for major programs this year.
Auditors from Hinkle & Company presented Breckenridge's 2025 annual comprehensive financial report to the Town Council on June 9 and said they will issue an "unmodified opinion" on the financial statements.
"Based upon our analysis and all of our testing throughout the audit, we did not find any significant deficiencies or material weaknesses in the internal control structure," auditor Jim Hinkle told council. He said the town's financial reporting followed generally accepted accounting principles and the audit produced what auditors refer to as a clean opinion.
Hinkle explained the town spent less than the federal threshold for major programs in 2025 and therefore was not required to undergo a single-audit this year. He said auditors performed tests of internal controls, substantive tests of transactions, and analytic procedures comparing year-to-year and budget-to-actual results.
In follow-up questions, Hinkle said town general-fund annual expenditures for 2025 were about $55 million and cash on hand at year-end was about $101 million, or roughly two times annual expenditures. He noted that governments vary widely in cash-reserve practices and that common benchmark ranges are often 75% to 125% of annual expenditures (expressed as days or months of coverage), so the town's position was healthy by that measure.
Hinkle said auditors will issue required communications letters with no adverse items to report and that the audit team experienced full cooperation from staff. Council thanked staff for responsiveness and the auditor for a clear presentation.
What it means: A clean audit opinion confirms the town's financial statements are presented fairly and frees staff to finalize filings and disclosures required by state deadlines (GFOA/GFOA-style and state auditor deadlines were noted). The audit did not test federal compliance via a single-audit because the town did not cross the federal threshold for major program expenditures.
