TVISD - 2024 Audit Report FINAL

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT FINANCIAL REPORT JUNE 30, 2024

23

CONTENTS U

U

Page U

INDEPENDENT AUDITOR’S REPORT

U

1-2

FINANCIAL STATEMENTS Statement of Net Position - Modified Cash Basis

3

Statement of Activities - Modified Cash Basis

4

Balance Sheet - Governmental Funds

5

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position - Modified Cash Basis

6

Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds

7

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities - Modified Cash Basis

8

NOTES TO FINANCIAL STATEMENTS

9-18

REQUIRED SUPPLEMENTARY INFORMATION Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Modified Cash Basis) - General Fund

19

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

20-21

SCHEDULE OF FINDINGS

22

SCHEDULE OF PRIOR YEAR FINDINGS

23

24

INDEPENDENT AUDITOR’S REPORT Management and the Board of Directors Teton Village Improvement & Service District Teton Village, WY 83025 Report on the Audit of the Financial Statements Opinions We have audited the accompanying modified cash basis financial statement of the governmental activities, the general fund of the Teton Village Improvement and Service District (the District), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective modified cash basis financial position of the governmental activities, and general fund of the Teton Village Improvement & Service District as of June 30, 2024, and the respective changes in modified cash basis financial position for the year then ended in accordance with the modified cash basis of accounting described in Note 1.

Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Teton Village Improvement & Service District and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter—Basis of Accounting and Restatement We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.

We further draw attention to Note 7 which describes the restatement related to the District’s beginning net position and fund balance as a result of the changes in basis of presentation from the 2023 audited financial statement to the 2024 audited financial statement.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting described in Note 1. This includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statement in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

1

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • • •

• •

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Teton Village Improvement and Service District’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Teton Village Improvement and Service District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Other Matters Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Teton Village Improvement and Service District’s basic financial statements. Management elected not to prepare the management discussion and analysis portion of the financial statements.

Required Supplementary Information Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 19 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated, December 13, 2024, on our consideration of the Teton Village Improvement and Service District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Teton Village Improvement & Service District’s internal control over financial reporting and compliance.

Mountain States CPAs and Consultants, LLC Mountain States CPAs and Consultants, LLC Lander, Wyoming December 13, 2024

2

Government-Wide Financial Statements

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF NET POSITION MODIFIED CASH BASIS JUNE 30, 2024

ASSETS Current Assets Cash and cash equivalents Cash - deposits held Investments Total Current Assets

$

Non-Current Assets: Land Vehicles Accumulated depreciation Total Non-Current Assets TOTAL ASSETS

648,237 165,000 1,940,000 2,753,237

94,500 20,110 (3,202) 111,408 $

2,864,645

LIABILITES AND FUND BALANCE Current Liabilities Deposits Total Current Liabilities

165,000 165,000

NET POSITION Net investment in capital assets Urestricted

111,408 2,588,237

TOTAL NET POSITION TOTAL LIABILITIES AND FUND BALANCE

2,699,645 $

See Independent Auditor's Report and Notes to the Financial Statements 3

2,864,645

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS JUNE 30, 2024

Expenses Function Governmental activities General and Administration Public works Depreciation expense Total governmental activities

Net (Expense) Revenue and Change in Net Position

Program Revenues Operating Charges for Grants and Services Contributions

Governmental Activities

$

72,592 178,302 3,202

$

17,910 69,763 0

$

0 0 0

$

254,096

$

87,673

$

0

General revenues Tax revenue Interest revenue

(54,682) (108,539) (3,202) $

(166,423)

$

857,833 61,399

Total general revenues

919,232

Change in net position

752,809

Net position - beginning balance as restated Net position - ending

1,946,836 $

See Independent Auditor's Report and Notes to the Financial Statements 4

2,699,645

Fund Financial Statements

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT BALANCE SHEET GOVERNMENTAL FUND - MODIFIED CASH BASIS JUNE 30, 2024

ASSETS Cash and cash equivalents Cash - deposits held Investments TOTAL ASSETS

General Fund

$

648,237 165,000 1,940,000 2,753,237

LIABILITES AND FUND BALANCE Liabilities Deposits TOTAL LIABILITIES FUND BALANCE Assigned - deposits held Assigned - emergency reserve Unassigned TOTAL LIABILITIES AND FUND BALANCE

165,000 165,000

$

See Independent Auditor's Report and Notes to the Financial Statements 5

165,000 250,000 2,173,237 2,753,237

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION - MODIFIED CASH BASIS JUNE 30, 2024

Total Fund Balances - Governmental Funds

$

2,588,237

Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources, and therefore are not reported as assets in the governmental funds. The cost of assets is $114,610, and the accumulated depreciation is ($3,202).

TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES

See Independent Auditor's Report and Notes to the Financial Statements 6

111,408 $

2,699,645

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS - CASH BASIS YEAR ENDED JUNE 30, 2024 General Fund REVENUES Taxes Charges for services Investment income

$

857,833 69,763 61,399

Total Revenues

988,995

EXPENDITURES General government Public works

72,592 198,412

Total Expenditures

271,004

Excess of revenues over (under) expenditures

717,991

Rental income

17,910

Net Change in fund balance

735,901 1,852,336

FUND BALANCE - JULY 1 as restated FUND BALANCE - JUNE 30

$

See Independent Auditor's Report and Notes to the Financial Statements 7

2,588,237

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS YEAR ENDED JUNE 30, 2024

Total Net Change in Fund Balances - Governmental Funds

$

735,901

Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported in governmental funds as expenditures.

However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.

This is the amount by which depreciation expense exceeds capital outlays in the period.

Depreciation expense Capital outlay

(3,202) 20,110

TOTAL CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES

See Independent Auditor's Report and Notes to the Financial Statements 8

16,908 $

752,809

Notes to the Financial Statements

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies General Information Teton Village Improvement and Service District was created in 1985 to provide for improvements and services of local necessity and convenience for the residents of Teton Village located in Teton Village, Wyoming. These improvements are funded through grants and property tax levies on the Teton Village and Granite Ridge residents.

The District is governed by a three member board.

The criteria used to determine the reporting entity are consistent with Section 2100 “Defining the Reporting Entity” of the Codification of Governmental Accounting and Financial Reporting Standards published by Governmental Accounting Standards Board (GASB).

The accounting policies of the District conform to generally accepted accounting principles as applicable to governments.

The District operates under, and is bound by, Wyoming statutes covering governance, trustee authority, policies and procedures, open meetings/records, fiscal policies, as well as the bylaws adopted by the Directors. The District is managed and controlled by a Board of three Directors who serve without compensation.

The District has no component units included within the reporting entity.

Basis of Presentation The Teton Village Improvement and Service District’s basic financial statements consist of government-wide financial statements, consisting of a statement of net position, and a statement of activities, and fund financial statements which provide a more detailed level of financial information.

1.

Government-Wide Financial Statements The statement of net position and the statement of activities display information about the Teton Village Improvement and Service District as a whole. These statements include the financial activities of the primary government.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. The Teton Village Improvement and Service District does not have any business-type activities for presentation.

The statement of net position presents the financial condition of the governmental activities of the District at year-end. The statement of activities presents a comparison between direct expenses and revenues for the governmental activities. The comparison of direct expenses with revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues of the Teton Village Improvement and Service District.

2.

Fund Financial Statements During the year, the District may segregate transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Currently, transactions and operations only require the presentation and tracking of a general fund as presented in the fund financial statements. Fund financial statements are designed to present financial information of the Teton Village Improvement and Service District at this more detailed level. The focus of governmental fund financial statements is on major funds. Each major governmental fund would be presented in a separate column.

The Teton Village Improvement and Service District has one major fund: The General Fund.

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TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

Fund Accounting The Teton Village Improvement and Service District uses funds to maintain its financial records with a self-balancing set of accounts.

1.

Governmental Funds Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to various governmental funds according to the purpose for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following is the District's major governmental fund: •

General Fund - The General Fund is the operating fund of the District and is used to account for all financial resources. The General Fund balance is available to the District for any purpose, provided it is expended or transferred in accordance with general laws of Wyoming.

Measurement Focus and Basis of Accounting Government-Wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus within the limitations of the modified cash basis of accounting.

Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus within the limitations of the modified cash basis of accounting.

The Teton Village Improvement and Service District reports the following major governmental fund: •

General Fund - The General Fund is the operating fund of the District and is used to account for all financial resources except those required to be accounted for in another fund.

Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. The District’s financial statements are prepared on the basis of modified cash basis. This method recognizes assets, liabilities, net position/fund equity, revenues, and expenditures/expenses when they result from cash transactions with a provision for depreciation in the government-wide statements. This basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Conformity with GAAP would require recognition of income when earned and expenses when incurred in the accompanying financial statements.

As a result of the use of this modified cash basis of accounting, certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected) and certain liabilities and their related expenses (such as accounts payable and expenses for goods or services received but not yet paid, and accrued expenses and liabilities) are not recorded in these financial statements.

10

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

Basis of Accounting (cont.)

If the District utilized the basis of accounting recognized as generally accepted, the fund financial statements for governmental funds would use the modified accrual basis of accounting, while the fund financial statements would use the accrual basis of accounting. All government-wide financial statements would be presented on the accrual basis of accounting.

Fund Balance The District uses the fund balance definitions in GASB Codification Section 1800 for financial reporting for all governmental fund types. The definitions provide more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent. The following classifications describe the relative strength of the spending constraints.

Nonspendable fund balance – amounts that are in nonspendable form (such as inventory) or are required to be maintained intact.

Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions, or by enabling legislation.

Committed fund balance – amounts constrained to specific purposes by the District itself enacted by resolution of the Board of Directors. Committed fund balance cannot be used for any other purpose unless the commitment expires as set forth in the resolution, or a new resolution is enacted by the District’s Board of Directors.

Assigned fund balance – amounts the District intends to use for a specific purpose. Intent can be expressed by the District’s Board of Directors or by an official or body to which the District’s Board of Directors delegates authority.

Unassigned fund balance – amounts that are available for any purpose.

Positive amounts are reported only in the General Fund.

The Teton Village Improvement and Service District applies nonspendable, restricted, committed, assigned, and then unassigned resources when an expense is incurred for purposes that satisfy the related definition and criteria for the related net position classification shown above.

The District maintained emergency reserves at $250,000. The purpose of maintaining emergency reserves is due to the fact that the District is solely reliant on tax revenues and assessments in a county that is largely reliant property tax revenues. These reserves are meant to enable the District to continue the level of services to property owners of Teton Village.

Additionally, management has elected to show assigned funds of $165,000 for the refundable deposits received as well as assigned cash balances for the deposits as of June 30, 2024.

The District has not elected to adopt a minimum fund balance policy as of June 30, 2024.

Budget and Budgetary Accounting The amounts reported as the original budgeted amounts in the budgetary statement reflect the amounts when the original appropriations were adopted. The amounts reported as the final budgeted amounts in the budgetary statement reflect the amounts after approved budget amendments during fiscal year 2023-2024.

The District follows these procedures in establishing the budgetary data reflected for the General Fund in the financial statements: •

The Board, in conjunction with internal staff, prepares and approves the District's budget prior to May 1 for the fiscal year commencing July 1.

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TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

Budget and Budgetary Accounting (cont.)

•

The budget is then submitted to the County Commissioners and Wyoming Department of Audit. The operating budget includes proposed expenditures and means of financing them for the upcoming year, along with estimates for the current year and actual data for the preceding year.

•

The budget is submitted in summary form with more detailed line item budgets included for administrative control.

•

Public hearings are advertised and conducted to obtain taxpayer comments.

•

The Board can, after adequate public notice and a public hearing, amend the original budget.

•

Appropriations lapse at the end of each fiscal year.

Revenue Recognition Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.

Capital Assets General capital assets result from expenditures in the governmental funds and These assets are reported in the include property, vehicles, and equipment. governmental activities column of the government-wide statement of net position, but are not reported in the fund financial statements.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated fixed assets are recorded at their fair market values as of the date placed in service. The District’s capitalization policy was set by the Board at $2,500 and increased in March of 2024 to $10,000.

Depreciation Method and Useful Lives Property, vehicles, and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Machinery, equipment and vehicles

Years 5 – 7 years

Net Position Net position is a function of assets plus deferred outflows of resources minus liabilities minus deferred inflows of resources equals net position. The caption "Invested in capital assets, net of related debt," consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets.

The District applies restricted and then unrestricted resources when an expense is incurred for purposes that satisfy the related definition and criteria for the related net position classification shown above for fund financial statements.

Use of Estimates The preparation of financial statements in conformity with a basis of accounting other than accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and related disclosures. Actual results could differ from those estimates.

12

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

Income Taxes The District is a political subdivision of the State of Wyoming and, as such, is exempt from federal income taxes.

New and Upcoming Accounting Pronouncements The following are Statements of the Governmental Accounting Standards Board (GASB) that are or will be applicable to the Organization in the upcoming future. As of June 30, 2024, the Organization was aware of the following new standards issued by GASB: •

GASB Statement No. 96, Subscription-Based Information Technology Arrangements, effective for fiscal year beginning after June 15, 2022.

•

GASB Statement No. 101, Compensated Absences effective for fiscal year beginning after December 15, 2023.

•

GASB Statement No. 102, Certain Risk disclosures effective for fiscal year beginning after June 15, 2024.

•

GASB Statement No. 103, Certain Risk disclosures effective for fiscal year beginning after June 15, 2024.

In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended.

The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged.

In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

This Statement requires that liabilities for compensated absences be recognized for (1)leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave.

Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

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TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

New and Upcoming Accounting Pronouncements (cont.)

This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences.

The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.

In December of 2023 the GASB issued Statement No. 102, Certain Risk Disclosures.

This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority. Concentrations and constraints may limit a government’s ability to acquire resources or control spending.

This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions of the following: • • •

The concentration or constraint Each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements Actions taken by the government prior to the issuance of the financial statements to mitigate the risk.

The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged.

In April of 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.

This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government. In addition, this 14

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

New and Upcoming Accounting Pronouncements (cont.)

Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.

This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.

This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses.

In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.

This Statement requires governments to present each major component unit separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements.

This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged.

The Organization is evaluating the impact that the above GASB statements will have on its financial reporting.

NOTE 2 -

Deposits and Investments Custodial Credit Risk of Bank Deposits Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits (cash and money market funds) totaled $813,237 and the bank balance was $812,458 as of June 30, 2024. Of the bank deposit balance, $500,000 was covered by federal depository insurance, and the remainder was collateralized up to an additional $1,875,051 by a financial institution where the District holds most of its deposits.

15

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 2 -

Deposits and Investments Custodial Credit Risk of Investments Custodial credit risk is the risk that in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The District will minimize the custodial credit risk by limiting investments to the types of securities allowed by state law and by prequalifying the financial institutions, broker/dealers intermediaries, and advisors with which the District would do business.

The District's certificates of deposit are summarized in the table below. The Wyoming Government Investment Fund and Wells Fargo certificates are not rated.

Certificates of Deposit WGIF - CD's Wells Fargo - CD

Fair Value $ 1,660,000 280,000

Less than 1 Month $ 0 0

Maturity in Months 6-12 $ 1,507,994 280,000

Maturity in Months 12-24 $ 463,000 0

Total Certificates

$

$

$ 1,787,994

$

1,940,000

0

Rates 5.15% - 5.35% 4.75%

Rating None None

463,000

The Wyoming Government Investment Fund is an external investment pool administered by the Wyoming State Treasurer. This pool invests in various investments. The District has chosen to utilize a fund that invests primarily in Certificates of deposits in various financial institutions in amounts below the Federal Deposit Insurance Corporation limit of $250,000.

The District has invested funds with an external investment pool, mostly in Certificates of Deposit which are specifically excluded from Government Accounting Standards Board Statement (GASS) No. 72, Fair Value Measurement and Application.

Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity its fair value is to changes in market interest rates.

Concentration of Credit Risk The Board places no limit on the amount the District may invest in any one issuer. The District minimizes the concentration of the credit risk by diversification so that the impact of potential losses from any one type of deposit and or security or issuer will be minimized.

As of June 30, 2024, the District had 50% of the cash balance in one financial institution.

Deposits are summarized in the table below as of June 30, 2024.

Deposits Cash in banks Investments Wyoming Government Investment Fund (WGIF) Total Cash and Investments

$

1,970,994 $

16

813,237

2,784,231

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 3 -

Property Taxes The District's property taxes are levied at the County level on October 1st of each year.

The County Assessor is responsible for the assessment of all taxable real property within Teton County. The County Treasurer computes the annual tax for each parcel of real property and prepares tax books used as the basis for issuing tax bills to all taxpayers in the County. Property taxes are collected by the County Treasurer, who remits to each unit its respective share of the collections. Provided the payments are timely, the tax can be paid in two equal installments on November 10 and May 10, or the tax may be paid in full on December 31. Taxes collected are distributed after the end of each month. This is the largest revenue source for the District.

NOTE 4 -

Leasing Arrangements The District leases a portion of a maintenance bay to a related party, Teton Village Special Fire District. The lease was renewed for an additional 5 years and requires $1,200 a month with a 3% annual increase through the term of the lease which matures in 2028. Below is a summary of the payments over the next 5 years to the District.

2025 $ 14,943 2026 16,665 2027 15,893 2028 10,805 2029 0

$

58,306

The District also has a joint lease receivable with The Teton Village Association for a jointly owned property. This is a short-term lease and the District received $3,402 in rental income from this joint lease agreement for the year ended June 30, 2024.

As the District is presenting their financial statements in accordance with the modified cash basis of accounting, Government Accounting Standards Board statement Number 87, Leases, has not been applied for this specific lease receivable.

NOTE 5 -

Capital Assets

Governmental Activity Capital Assets, Non Depreciable Land

Balance June 30, 2023

Additions

Deductions

Balance June 30, 2024

$

$

$

$

94,500

0

0

94,500

Capital Assets, Being Depreciated Vehicles

0

20,110

0

20,110

Less Accumulated Depreciation

0

(3,202)

0

(3,202)

Governmental Activities Capital Assets, Net NOTE 6 -

$

94,500

$

16,908

$

0

$

111,408

Contingencies A.

Grants The District, from time to time, may receive financial assistance in the form of grants. The expenditure of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and could be subject to audit by the granting agencies. Any disallowed claims resulting from such audits could become a liability of the general fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the District at June 30, 2024.

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TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 6 -

Contingencies (cont.)

B.

Litigation The District is contingently liable in respect to lawsuits and claims in the ordinary course of its operations. In the opinion of District personnel, the settlement of such contingencies may affect the financial position of the District at June 30, 2024. Should any claims prove to be a detriment to the District, they will be recorded as expenditure in the period in which a liability is realized.

C.

Property and Liability Risk Management Real and personal property owned by the District is subject to loss from natural disasters and actions of others. In addition, the District has the potential to be named as the responsible party in liability claims. The District purchases commercial insurance packages to offset such losses, should they occur.

NOTE 7 -

Restatement The District’s beginning net position and beginning fund balance was restated from the June 30, 2023 audited financial statement due to the change in basis from the full accrual basis of accounting (beginning net position on the government wide Statement of Net Position) as well as the modified accrual basis of accounting (beginning fund balance on the Statement of Revenues, Expenditures and Changes in Fund Balance) to the modified cash basis presentation. The breakdown of the restatement is shown in the table below for the general fund which flowed to the government wide statement as well.

The table below is detail of the amounts required to be reversed for the modified cash basis presentation.

Beginning Net position 2024 - As Ending 2023 Net Restated Position Restatement Fund Balance - General Fund $ 1,849,788 $ 1,852,336 $ 2,548

Total Restatement

NOTE 8 -

$

2,548

Reversal of receivables Reversal of accounts payable Reversal of right of use asset Reversal of deferred inflows Reversal of prepaids and management fees

$

(14,187) 20,145 (68,531) 68,531 (3,410)

Total restatement

$

2,548

Subsequent Events Management has evaluated subsequent events through the date December 13, 2024 the financial statements were available to be issued.

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Required Supplementary Information

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - CASH BASIS GENERAL FUND YEAR ENDED JUNE 30, 2024

Actual Budgetary Basis

Budgeted Amounts Original Final REVENUES Taxes Charges for services Rental income Investment income

$

879,252 17,802 14,400 15,000

$

879,252 17,802 14,400 15,000

$

857,833 69,763 17,910 61,399

Variance With Final Budget Positive (Negative) $

(21,419) 51,961 3,510 46,399

Total Revenues

926,454

926,454

1,006,905

80,451

EXPENDITURES General government General government Public works

76,736 1,021,336

76,736 1,021,336

72,592 198,412

4,144 822,924

Total Expenditures

1,098,072

1,098,072

271,004

827,068

Excess of revenues over (under) expenditures

(171,618)

(171,618)

735,901

907,519

FUND BALANCE - JULY 1

1,852,336

1,852,336

1,852,336

FUND BALANCE - JUNE 30

$ 1,680,718

$ 1,680,718

$

2,588,237

See Independent Auditor's Report and Notes to the Financial Statements 19

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Management and the Board of Directors Teton Village Improvement & Service District Teton Village, WY 83025 We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the District, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated December 13, 2024.

Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

20

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Mountain States CPAs and Consultants, LLC Mountain States CPAs and Consultants, LLC Lander, Wyoming December 13, 2024

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TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT SCHEDULE OF FINDINGS YEAR ENDED JUNE 30, 2024 None

22

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT SCHEDULE OF PRIOR YEAR FINDINGS YEAR ENDED JUNE 30, 2023 Not Applicable as the prior year was a reviewed financial statement

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