Hospital board pursues forensic audit after state-directed hold on mill levy funds

The Weston County Hospital District board agreed Dec. 18 to pursue a forensic audit and seek clarification from the Wyoming attorney general’s office after state audit concerns prompted the county to withhold mill-levy funding.

Kathy, the hospital chief executive officer, told the board that roughly $704,000 that normally would flow to the district was being held and that the district would seek a rapid audit so the funds could be released. “My hope is that we’re gonna try to get a... audit by December 31 done so that our money will stop being held and we’ll start to receive that money back,” Kathy said.

Paul, the board’s finance presenter, said his deeper review after 30 days on the job uncovered issues that warrant a forensic look-back. “We still need to do a forensic audit,” Paul said, adding that the initial focus would cover the past 18 months with the possibility of extending further back. The finance committee is soliciting bids from firms already on the shortlist and will recommend a firm to the full board.

Allison, board counsel, said she had reached out to the Wyoming attorney general’s office for clarification about which statutory audit requirements apply to a special hospital district and whether the county treasurer’s hold is consistent with state guidance. “The AG received my email, acknowledged it, and said he would get back to me,” Allison said. She told the board there is a statute that specifically addresses audit requirements for Wyoming’s special hospital districts and that those rules differ from statutes that authorize county withholding in other contexts.

Board members said they were unified in wanting a prompt, transparent resolution so operations would not be disrupted. Several directors said they supported moving quickly to sign an engagement with an accounting firm that can satisfy state requirements and, separately, perform the deeper forensic review. The board discussed doing a special meeting after the holidays if needed to finalize contracts.

Next steps: the finance committee will bring bids and a recommendation to the board, counsel will follow up with the AG’s office and the county attorney, and board leadership said they would consider a special meeting to authorize the audit engagement. The board’s next regular meeting is scheduled for Jan. 15, 2026.