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Board accepts 2023 audit; auditor flags material weakness and a $35,000 overrun
Summary
The Board of Trustees accepted the town's 2023 financial audit, which received an unmodified (clean) opinion. Auditor Kyle Logan identified a material weakness driven by audit adjustments and noted the general fund was overspent by about $35,000.
The Green Mountain Falls Board of Trustees voted to accept the town's audited financial statements for the year ending Dec. 31, 2023, after a presentation by Kyle Logan of Logan and Associates. "For the year end of 12/31/2023, the town received an unmodified opinion," Logan said, explaining that an unmodified opinion means the statements are fairly stated in all material respects.
Logan walked trustees through the headline numbers: total assets of about $3.7 million, net position near $3.1 million, cash and investments roughly $551,000, and capital assets of about $2.3 million. He said the town's unrestricted net position—about $853,000—represents roughly nine months of operations. Logan also said grant timing and recording led to a restatement: the Pikes Peak RTA loan needed to be recorded in 2022 rather than 2023, and several grant transactions required adjustments.
In the management letter, Logan described a material weakness tied to the number and magnitude of audit adjustments and flagged segregation-of-duties limitations common to small municipal staffs. He also noted that purchasing-card transactions sometimes lacked receipts and that sales tax was paid on transactions contrary to policy. "We had to make a lot of adjustments" was Logan's summary of why the management letter calls for control improvements.
Trustees asked for follow-up on a detail in the management discussion and analysis about how revenues and expenses produced a $182,000 net increase; Logan said he would review the item and report back. The board moved to accept the audit and then directed staff to submit the package to the state so the town could pursue certain grant matches and funding opportunities that require an accepted audit.
The board's action was procedural: the motion to accept the audit passed on a voice vote; a roll-call tally was not recorded in the minutes.
