Park County accepts clean audit, adopts higher fixed-asset threshold after auditors flag capital-asset record errors

Park County commissioners voted to accept an independent audit that found the county's financial statements presented fairly in all material respects while approving a revised fixed-asset policy intended to reduce recordkeeping burden.

The county's auditors from Carver, Florrick & James CPAs told commissioners they issued a clean (unmodified) opinion on the financial statements for the year ended June 30, 2025, and found no material noncompliance for the two major federal programs they tested under single-audit rules. Auditor Alex said the firm spent hundreds of hours on the engagement and provided a high level of assurance that the statements were free from material misstatement.

But the audit also identified a single significant deficiency tied to capital-asset accounting: multiple depreciation-calculation errors in the county's system (including an understatement of accumulated depreciation of about $420,000), omissions from the county's construction-in-progress (CIP) schedule, and assets disposed in prior years that remained on depreciation schedules. The auditors recommended improved schedules and more frequent updates of CIP listings.

The findings came as part of a broader financial picture the auditors described: the county reported a net governmental funds deficit of $5.3 million for the year, driven largely by higher expenditures (notably $5.5 million in county road construction spending for the Willow/Wood rehab project and about $3.6 million spent on the Powell Library project), reduced ARPA spending compared with the previous year, and modest payroll cost increases. The auditors also noted approximately $1 million of accrued interest on ARPA funds that will be recognized when those funds are fully expended.

Following the presentation and questions from commissioners about reserves and accounting treatment, the board moved, seconded and approved acceptance of the audit.

Commissioners then considered a proposed update to the county's fixed-asset and capitalization policy. County staff and the clerk's office said the current capitalization threshold ($5,000) generated heavy tracking burdens for low-value items. The proposal increases the threshold for equipment, vehicles, computers and similar items to $10,000, retains a $50,000 threshold for land transactions, and clarifies treatment of intangible assets and CIP reporting. Staff said the change follows GASB guidance and a cost-benefit approach recommended by auditors.

After discussion about building-improvement thresholds and the accounting impact of expensing smaller projects versus capitalizing them, the board voted to adopt the policy retroactive to July 1, 2025, with an editorial correction to the signature block requested before final execution.

What happens next: staff and the clerk's office will implement changes to capitalization and depreciation schedules, review the CIP process to capture in-progress additions more frequently, and report back on corrective steps tied to the audit's significant deficiency.