The Crested Butte News Serving the Gunnison Valley since 1999
Funds in really good shape
[ By Kendra Walker ]Earlier this summer, the Mt. Crested Butte town council reviewed the town’s 2022 audit in a presentation from their auditor McMahan and Associates, LLC.
“Everything went really smoothly,” said finance director Karl Trujillo, regarding working with McMahan and Associates for the third year. “All our funds are in really good shape.”
“While the annual audit is a statutory requirement under state and town’s home rule charter, it’s also a beneficial business process,” McMahan partner Michael Jenkins explained to the council. “An audit provides an independent view on the town’s financial statements and reporting, so that you maintain a that high level of transparency.”
The town received an “Unmodified” audit opinion on financial statements, said Jenkins, noting that is the highest form of assurance from independent CPA auditors that finances are properly reported in accordance with applicable standards.
In 2022, the town’s total assets were $36.9 million, an increase of 15% from 2021. The 2022 town liabilities totaled $4.9 million, an increase of 25% from 2021 due to higher construction related deposits. The assets exceed the liabilities by $29.7 million, Jenkins said.
The town’s largest revenue sources in 2022 were from sales and use taxes and property taxes. He noted that sales taxes were up 37% and lodging taxes were up 39% from 2021 due to recovery in tourism and general economic activity.
“Overall, 2022 was a pretty good year for the town,” said Jenkins. He told the council the town’s financial health remains solid and the town has budgeted conservatively. “Accounting policies and practices are conservative, consistent and compliant,” he said.
He also told the council, “Your review of financial matters or annual and monthly reports is an important part of oversight. I encourage you to continue what you’re doing, looking at budgetary reports and are you are doing relative to expectations.”
The council unanimously approved a resolution accepting the 2022 audit. The council will begin reviewing the town’s 2024 budget later this month.
