Rock Springs audit draft finds clean opinion; net position up $12.9 million

Brittany Wilson, partner at McGee, Hearne & Paiz, told the Rock Springs City Council on Nov. 18 that the firm issued an unmodified — or clean — draft audit opinion for the city's fiscal year ending 2025.

Wilson said the city's total net position increased about $12.9 million compared with the prior year, and total liabilities decreased roughly $2.7 million, a change the auditors attributed in part to a reduction in the net pension obligation. She reported that modified accrual measures showed the general fund did not overspend and that post-employment benefit liabilities declined to about $964,000 from $1.2 million in 2024.

The auditors also noted a reported impairment loss just over $3 million related to cancellation of construction and the pending sale of the First Security Bank Building. Under Uniform Grant Guidance, Wilson said the city continues to qualify as a low-risk auditee and that independent reports on internal control and compliance showed no material weaknesses or deficiencies.

On federal awards, the audit included Program 21.027 (Coronavirus funds), which Wilson said was just over $1 million and was selected for the required federal testing this year; final compliance supplement materials were still pending because of a federal government shutdown, she added.

City officials voted to accept the audit draft for filing; the council later approved a separate motion to accept the audit report as presented. Matt McBurnett, director of administrative services, did not dispute the auditors's findings and answered council questions about the timing of final federal compliance documents.

The council's acceptance of the draft does not constitute final federal closeout; auditors said the opinion was draft pending completion of the federal compliance supplement. The city will await final federal guidance before the audit is finalized.