Washoe County audit receives clean opinion; board acknowledges ACFR and reappropriates $117.9 million

Washoe County's external auditors issued an unmodified opinion on the county's annual comprehensive financial report for the fiscal year ended June 30, 2025, and the Board of Commissioners acknowledged the report and approved related reappropriations.

Laura Nelson, senior manager at EideBailey, presented the auditor's independent report and said the firm had issued a clean, unmodified opinion because it obtained reasonable assurance that the financial statements were free from material misstatement. Nelson identified two reportable items: a significant deficiency related to subscription-based IT arrangements (GASB 96/GASB 101 reconciliation work continuing) and a material weakness tied to a manual adjustment affecting federal grant revenue and a $2.2 million receivable misstatement that staff corrected in the statements.

Comptroller Kathy Hill told commissioners the county ended the fiscal year with approximately $2,500,000 added to fund balance (net, excluding unrealized gains). "This year, the ACFR that you have been presented with is a little bit different than previous efforts. It does not include the single audit or the compliance audit for federal awards," Hill said, explaining that the single audit will be presented later when the federal guidance is finalized.

On a motion, the board acknowledged receipt of the ACFR, accepted the auditor's report, approved reappropriation of $117,880,477.50 for the first year of the FY2026 budget (including $68,481,627.22 for purchase-order encumbrances and $49,398,850.28 for restricted contributions and fees) and authorized the comptroller to post the ACFR for public record as required by law. The motion passed 4-0.

Nelson and staff said they will return to present the single audit when it is completed and the federal compliance audit is available.

No further action was required at this meeting beyond the acknowledgement and reappropriation vote.