Discussing disclosures

While the Town of Saratoga has yet to start on their audit of Fiscal Year 2020/2021, the Saratoga-Carbon County Impact Joint Powers Board (SCCIJPB) is nearing the completion of their financial review. 

During their March 9 meeting, the SCCIJPB was informed by Chairman Richard Raymer that Binder Dijker Otte (BDO)—Anton Collins Mitchell (ACM), the auditing firm historically used by the joint powers board merged with BDO in 2020—had asked for direction from the board on the inclusion of a disclosure in their review.

That disclosure centered around a revelation in June 2020 that the Town of Saratoga had, for years, borrowed from the water and sewer enterprise funds to keep the municipality running.

“They asked if we wanted some sort of a disclosure in that audit acknowledging that the Town had used enterprise funds to fund other deals,” said Raymer. “That, basically, the Town borrowed money from the enterprise funds and we know about it, they know about it and we need to make the acknowledgement of that in the audit.”

Vice Chairman Craig Kopasz asked both Raymer and recording secretary Susan Collamer if the auditors from BDO had provided language for the disclosure. Collamer responded that no proposed language was provided and that the auditors were seeking direction as to whether such a disclosure should be included.

“It should be part of the audit,” said Roger Cox, SSCIJPB member. “If they’re doing a proper audit.”

It should be noted that Cox is married to former town clerkSuzie Cox, who retired on December 31, 2020 from the Town of Saratoga.

While a motion was made and seconded to include such a disclosure in the audit, discussion amongst the joint powers board members showed some hesitancy at what implications it would have.

“It’s understood that the enterprise funds were used for operation of the Town but I just don’t want to get into a position where we’re saying that the enterprise fund doesn’t get reimbursed,” said Russ Waldner, SCCIJPB treasurer.

“I have reservations about directing the auditor to put something in the report, or at least the audit report,” added Councilmember Jon Nelson, who serves as the council representative to the joint powers board. “In order for them to maintain their independence, they should not take any direction on what should be in the audit and just provide the audit.”

Raymer stated that he wasn’t sure if the language of the disclosure was just providing acknowledgement that funds were borrowed—albeit without the knowledge of the SCCIJPB—or if there was any legal recourse attached to the language.

“Whether it does us any benefit or not in the audit, I have no clue,” Raymer said.

“My point wasn’t whether it’s a benefit or a detriment to us, it’s just we hired those people to do an audit. If they think that’s something that should be in the audit, then that should be in the audit,” Cox replied. “It’s not up to us to tell them how they should put it in there or how they shouldn’t put it in there. If we don’t agree with it when they provide it, well then we can discuss it then, but at this point we hired them to do an audit.”

Raymer asked if Cox wanted to amend his motion, to which Cox responded that when he made his motion it was with the understanding that the auditors would not have asked to include the language if they didn’t think it was important.

“So, if they ask us the question, I think we would be doing everybody a disservice if we told them ‘No, we do not want that in there’,” said Cox.

Kopasz clarified, stating, “So, we’re okay if they would want to put it in there but we’re leaving it, basically, up to them.”

The motion to include the disclosure in the audit passed on a 5-2 vote with Waldner and Nelson voting nay.

The next meeting of the Saratoga-Carbon County Impact Joint Powers Board will be at 6 p.m. on April 14 at the Platte Valley Community Center in Saratoga.