Audited Financial Statements

Updated March 20, 2011



2008 audit completed eleven months after due date

Posted October 8, 2010

On September 2, 2010, Chad Chavies from the CPA firm Tim Chavies & Associates, Inc. presented the 2008 audited financial statements to the Board of Trustees. 

The CPA firm was hired in May to conduct the audit after the previous auditor, Cole & Crosier, P.C., resigned on November 30, 2009

The statutory deadline (including extension) for filing the 2008 audit with the Colorado Office of the State Auditor was September 30, 2009. 

Cole & Crosier resigned after former town clerk & treasurer Tori McMechan was unable to provide the auditors with the books and records needed to conduct the audit.  McMechan was fired by the board on February 4, 2010 for misconduct, including her failure to ensure the 2007 and 2008 audits were completed in a timely manner. 

The 2009 audit has yet to be completed and became delinquent on October 1. 

Although the 2008 auditor's report expresses the opinion that there are no material misstatements in the financial statements, the report is qualified because management (the town board) omitted the "Management's Discussion and Analysis".  An MD&A is required under generally-accepted accounting principles because it is considered essential to place the financial statements in an appropriate operational, economic, and historical context. 

It is unclear why the town board chose to omit the MD&A, although it may be due to the high turnover in the town's elected officials and employees.

Annual Financial Report - Town of Nunn, Colorado - For the Year Ended December 31, 2008 (PDF 1,968 KB, 37 pages)


Resignation letter from Cole and Crosier, P.C. informing the Board of Trustees that the CPA firm is withdrawing from the 2008 audit engagement because "the Town has not been prepared for the audit engagement to commence" - November 30, 2009 (PDF 186 KB, 1 page)  This letter was received by Town Clerk Tori McMechan in early December 2009 and was withheld from the Board of Trustees until after the December 15 recall election.  McMechan also served as the town's treasurer and was responsible for providing the town's books and records to the auditor.


Town of Nunn, Colorado - Annual Financial Report - Year Ended December 31, 2007, including Independent Auditor's Report, Management's Discussion and Analysis, Basic Financial Statements, Required Supplementary Information for Major Funds, and Other Supplementary Information - Cole and Crosier, P.C., Certified Public Accountants - January 6, 2009 (PDF 1,872 KB, 54 pages)  The statutory deadline (including extension) for filing the 2007 audit with the Colorado Office of the State Auditor was September 30, 2008.  The delinquent audit was filed five months later on March 3, 2009. 


The Role of Auditing in Public Sector Governance - Institute of Internal Auditors - November 2006 (PDF 1,288 KB, 26 pages)


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