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Auditors give county a clean opinion but flag compensation accounting and distribution timing
Summary
External auditors delivered an unmodified (clean) opinion on Natrona County’s financial statements but noted a one‑time restatement tied to a change in how compensated absences are calculated; they also reported material weaknesses in custodial fund distributions timing and a procurement documentation gap for certain SLFRF contractor payments.
Porter Mirhead, presenting the county’s annual audit at the March 4 commission meeting, said auditors issued an unmodified (clean) opinion on the county’s financial statements but included an emphasis‑of‑matter about a change in accounting for compensated absences.
"The change in accounting standards increased the liability for compensated absences and resulted in a restatement in the current year," Porter Mirhead said, noting the adjustment increased the county’s reported liability by about $1 million. Auditors described the number as an estimate based on accumulated leave balances and the methodology required by the standards and said it is a rolling estimate as leave is earned and used.
The audit team highlighted two internal control findings. Auditors cited differences in the timing of distributions held for other taxing authorities (mobile‑machinery and certain fees) and a lack of clarity in statutory timing that led to items being distributed later in the fiscal year; auditors recommended management review to ensure distributions follow state statute and county policy. The team also called out missing procurement documentation in a small set of transactions paid with State and Local Fiscal Recovery Funds (SLFRF): engineers and other contractors involved early in grant planning did not always have evidence on file that they were not suspended or debarred (SAM search, contractor certification, or contract clause).
On federal awards testing, auditors tested the state and local fiscal recovery program (about $17 million in expenditures last fiscal year at the health department), plus other major programs including health care for the homeless and the community service block grant administered by the Community Action Partnership. The auditors praised improvements in the CAP accounting system after prior‑year issues.
Auditors also issued a management comment letter with suggested process improvements (for example, reconciling certain custodial accounts and addressing long‑outstanding outstanding checks). County staff acknowledged the findings and said they are working with state partners and internal departments to correct timing and documentation issues.
The commission received the audit presentation; no vote was required on the auditor’s opinion itself, and staff said they would follow up on the findings and corrective actions.
