The Town of Vail remains in a strong financial position according to results of the 2011 audit which was presented to the Town Council on June 4 by Michael Jenkins of McMahan and Associates. The report gave the town a "clean" opinion, which means the auditors believe the financial statements are presented fairly in all material respects.
The financial statements include the town and its affiliated units - Vail Local Marketing District, Vail Reinvestment Authority and Timber Ridge Affordable Housing Corporation. The town's government-wide net assets as of December 31, 2011 totaled $177.9 million, of which $55.1 million was unrestricted, i.e., available for any governmental purpose. For the full year, government-wide revenue exceeded expenses by $8.3 million.
Jenkins pointed out all debt which is the responsibility of the town will be paid off by the end of 2012. At that time, only Vail Reinvestment Authority and Timber Ridge Affordable Housing Corporation bonds, both of which are funded from dedicated sources, will be outstanding.
A good benchmark of financial strength cited by Jenkins is governmental fund balances as a percent of expenditures. Across all Town of Vail funds, this measurement is 140 percent, which implies the town could hypothetically continue at existing spending levels for more than a year even without any revenue.
In response to questions from Mayor Andy Daly, Jenkins confirmed the audit team encountered no differences in dealing with management in completing the audit; there were no known or likely misstatements material in nature; and no disagreements with management that could be significant to the financial statement or auditor's report.
In conclusion, Jenkins congratulated the town and the finance team on its consistent practices, conservative budgeting, and sound systems and controls, all of which contribute to the town's strong financial position.