CRESTONE— On Oct. 9, the Crestone Board of Trustees accepted a Report on the Audit of the Financial Statements for the year ending 2022 from the accounting firm of Lenny Merriam CPA, CFE, PLLC, during their regular meeting.

In 2022, the Town budgeted revenues were forecast to be $1,443,311 and the actual amount was $616,924. Total expenditures were budgeted to be $1,679,863 and actual expenditures were $904,139. The resulting deficit of $287,215 came out of the fund balance that was $692,984 and reduced to $405,769.

"There wasn't as much grant revenue, that was a major cause for that," said Lenny Merriman of the reduced revenue at the meeting.

In the report, Merriam notes qualitative aspects of the accounting practices of the Town. This is a normal accounting protocol. "I encountered no significant difficulties in dealing with management in performing and completing my audit," and "The significant accounting policies used by the Town of Crestone, Colorado are described in Note 1 to the financial statements. I noted no transactions entered into by the Town of Crestone, Colorado during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period."

Earlier this year, the Town Trustees met to discuss a supplemental budget that slashes revenue projections for the 2023 Fiscal Year due to "staffing changes," that have left the municipality short. According to the supplemental budget, the reduction in revenue is precipitated "Primarily [by] a decision not to apply for multiple grants was made due to staffing changes that imposed limits on the availability to manage the projects to be funded by grants."

Currently, the website for the Town has six employment vacancies including a Clerk Administrator, a Deputy Clerk, and a Public Works Superintendent.

According to the proposed supplemental budget, the General Fund Revenues for the town have been reduced from the previously approved amount of $2,084,203 to $585,055 a reduction of 71.9%.

It is not known when the trustees may consider the proposed supplemental budget for 2023 again.