Bear River Mental Health presents clean audit; county share funds large Medicaid match

Rob Johnson presented the independent audit of Bear River Mental Health to the council and reported the auditors issued a clean opinion on the financial statements for the year ended June 2024. "In our opinion, the accompanying financial statements present fairly in all material respects the financial position of the center as of June 2024," Johnson read from the auditors’ report.

Johnson described the organization’s funding structure as an ‘‘inverted pyramid’’ built on county funding—about $599,000—matched by state dollars and leveraged to support roughly $21 million in revenue to serve three counties. Personnel costs make up just over 73% of expenditures; professional services and hospitalizations were called out as major expense drivers. The audit’s internal-control report noted no identified material weaknesses but cautioned that material weaknesses may exist that were not detected.

Council members asked about a $500,000 sale of assets noted in the report; Johnson explained it related to transferring an interest in facilities to a health department partner. They also asked about cash and equivalents, which Johnson said rose from about $16.3 million to $20 million year over year and will be used on capital work, including a receiving center and a 20-unit apartment project that will reduce the cash position as expenditures occur.

Johnson confirmed organizational transition steps are underway, noting that substance-abuse services from a health department will integrate as Bear River Behavioral Health Services on July 1; the audit does not reflect that merger. The council thanked him and had no immediate action beyond the review.

No material noncompliance items were reported by auditors under government auditing standards, and the center expects some capital expenditures will moderate cash levels in the coming year.