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White Pine County reports weakened internal controls; committee asks for August update
Summary
A White Pine County representative told the committee the budget was submitted without required officer participation and that accounts‑payable and internal control processes have deteriorated; the committee asked for a status report at its August meeting and offered help identifying auditors.
A White Pine County representative told the Committee on Local Government Finance that structural and staffing problems have degraded the county’s internal controls, created audit risk and complicated year‑end closing.
The representative said the county’s budget had been submitted without legally required participation from the treasurer’s office and that the submitted document was signed by a contracted employee who does not hold fiduciary duty to the county. The speaker warned this created "legal, procedural, and audit related vulnerabilities." The representative also reported accounts‑payable delays, inconsistent required approvals, relaxed IT controls for financial system access, increased reliance on credit cards and elevated risk for fraud and audit findings.
Gina Rackley, who said she had consulted with Department of Taxation staff, noted the tentative budget had been approved by the Department of Taxation and that external support had been retained to help with accounts‑payable and year‑end work. Rackley said she and outside contractors were coordinating with auditors and the new finance director, who started the week before the meeting.
Committee members expressed concern and agreed it would be prudent to revisit White Pine’s status in August, when year‑end closing and audit progress can be assessed. The representative said they expected to work with local auditors in Ely and the city to identify reliable firms and to return with an update in August.
No formal state action (fiscal watch or severe financial emergency) was taken at the meeting; the committee scheduled follow‑up oversight and recommended the county secure a CPA firm able to complete timely audits.
