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Central Utah Counseling Center auditors report clean compliance; county contribution and reserves discussed
Summary
Representatives from Central Utah Counseling Center presented their annual independent financial audit to the Millard County Commission, reporting no instances of state-required noncompliance and explaining a negative change in net position tied to construction of a new Richfield facility and reserve drawdowns.
Representatives of Central Utah Counseling Center presented their annual independent financial audit to the Millard County Commission and answered commissioners' questions about county contributions, reserves and future funding risk.
Why it matters: The counseling center is a county partner that receives county contributions and state Medicaid pass-through funding. Commissioners sought clarity about how one-time revenue changes, capital costs and Medicaid policy shifts could affect local cost-sharing and service continuity.
Nathan Strait, director at Central Utah Counseling Center, and Richard Anderson, the center's chief financial officer, presented highlights of the audit. Anderson summarized the auditors' opinion that the center's financial statements fairly represent its position and said the auditors found "no instances of noncompliance which are required to be reported in accordance with the state compliance audit guide." He also walked commissioners through the center's revenue mix: state contracts, county contributions, and Medicaid dollars used in combination to fund services.
Anderson told commissioners the county's current contribution reported in the audit was $451,000; the center reported total operating revenues of about $11.7 million and net operating revenues derived largely from Medicaid. He said the center recorded a negative $2.2 million change in net position for the year after completing a 12,000-square-foot facility in Richfield and drawing on reserves to finish construction. Anderson said the center has targeted higher reserves than in the past and that leadership is comfortable with a $4 million to $5 million reserve target going forward.
Commissioners asked how the center might be affected by changes at federal and state Medicaid levels. Anderson said the center has submitted requests to Utah Medicaid and that some federal responsiveness has slowed; he described uncertainty about upcoming federal changes but said the organization expected to remain operational while it pursues delayed payments and federal decisions.
No formal county action was required. Commissioners thanked the presenters and asked staff to note the center's reserve targets and the potential effect of future Medicaid policy and funding changes when evaluating county contributions and partnership arrangements.
