Town audit shows positive changes

At their Nov. 29 meeting, Thermopolis Town Council approved the audit of the financial statements for the fiscal year ending June 30, 2018, with much appreciation for the time and work Koerwitz, Michel, Wright and Associates put into preparing it.

Among the highlights listed in the audit, the town exceeded its liabilities at June 30, 2018 by $28,567,974 (net position), compared to $27,705,536 in 2017. Of that, $7,463,589 can be used to meet the government’s ongoing obligations to citizens and creditors.

The town’s governmental funds reported total fund balances of $7,830,794. Of that, $6,361,067 can be used to meet government’s spending requirements.

During the year, the town’s proprietary fund increased $1,147,942 due to a grant and transfer of $881,270 and net operating income of $270,598.

The total assets for the fiscal year are $33,424,387, compared to $32,247,973 in 2017, reflecting a 3.6 percent change overall. Current and other assets increased from $10,269,407 in 2017 to $11,175,301 in 2018, or 8.8 percent. Capital assets increased from $21,978,566 to $22,249,086, or 1.2 percent.

Current and other liabilities total $2,759,941, and long-term liabilities total $2,351,096 for a total $5,111,037 in liabilities. There were also $392,462 in deferred outflows and $137,839 in deferred inflows.

Regarding the General Fund, at the end of the fiscal year the balance was $5,941,031 compared to $5,812,430 in 2017. Revenues came in at $$2,887,279 and expenditures were $2,438,110 less than budget. When other financing uses of $128,601 — $310, 568 in transfers out — are taken into account, the net change in the fund balance was $128,601.

An additional finding in the audit shows the town employs a Clerk/Treasurer and two assistants in the business office. The level of staffing does not include sufficient personnel for adequate segregation of duties. The potential effect of this, as stated in the audit, is an increase in the risk of fraud and undetected errors in financial transactions.

However, a response letter from Clerk/Treasurer Tracey Van Heule states town administration has instituted several checks and balances in order to help mitigate problems associated with the lack of segregation of duties.