TVISD 2025 Audit Report Final

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT FINANCIAL REPORT JUNE 30, 2025

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, 2025, 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, 2025, and the respective changes in cash basis financial position for the year then ended in accordance with the 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 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.

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, November 11, 2025, 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 November 11, 2025

2

Government-Wide Financial Statements

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF NET POSITION MODIFIED CASH BASIS JUNE 30, 2025

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

$

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

112,046 150,000 3,524,421 3,786,467

84,500 145,211 20,110 (7,224) 242,597 $

4,029,064

$

150,000 150,000

LIABILITES AND FUND BALANCE Current Liabilities Deposits Total Current Liabilities NET POSITION Net investment in capital assets Urestricted

97,386 3,781,678

TOTAL NET POSITION TOTAL LIABILITIES AND FUND BALANCE

3,879,064 $

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

4,029,064

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS JUNE 30, 2025

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

$

102,064 199,980 4,022

$

5,399 430,279 0

$

0 0 0

$

(96,665) 230,299 (4,022)

$

306,066

$

435,678

$

0

$

129,612

$

898,516 141,291 10,000

General revenues Tax revenue Interest revenue Gain on sale of land Total general revenues

1,049,807

Change in net position

1,179,419

Net position - beginning

2,699,645

Net position - ending

$

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

3,879,064

Fund Financial Statement

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT BALANCE SHEET GOVERNMENTAL FUND - MODIFIED CASH BASIS JUNE 30, 2025

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

General Fund

$

112,046 150,000 3,524,421 3,786,467

LIABILITES AND FUND BALANCE Liabilities Deposits TOTAL LIABILITIES

150,000 150,000

FUND BALANCE Assigned - deposits held Assigned - emergency reserve Assigned - chip seal and overlay reserve Unassigned

150,000 250,000 2,500,000 736,467

TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE

3,636,467 $

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

3,786,467

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION - MODIFIED CASH BASIS JUNE 30, 2025

Total Fund Balances - Governmental Funds

$

3,636,467

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 $249,821, and the accumulated depreciation is ($7,224).

TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES

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

242,597 $

3,879,064

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS - CASH BASIS YEAR ENDED JUNE 30, 2025 General Fund REVENUES Taxes Charges for services Investment income

$

898,516 450,279 141,291

Total Revenues

1,490,086

EXPENDITURES General government Public works

127,505 319,750

Total Expenditures

447,255

Excess of revenues over (under) expenditures

1,042,831

Rental income

5,399

Net Change in fund balance

1,048,230

FUND BALANCE - JULY 1 FUND BALANCE - JUNE 30

2,588,237 $

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

3,636,467

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, 2025

Total Net Change in Fund Balances - Governmental Funds

$

1,048,230

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

(4,022) 145,211

141,189

Gain on disposal of assets is reported in the statement of net position. However, they are not reported in governmental funds.

TOTAL CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES

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

(10,000) $

1,179,419

Notes to the Financial Statements

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 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 five 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.

See Independent Accountant’s Review Report 9

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 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, 2025 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. An additional reserve of $2,500,000 was maintained for upcoming chip seal and overlay projects. 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 $150,000 for the refundable deposits received as well as assigned cash balances for the deposits as of June 30, 2025.

The District has not elected to adopt a minimum fund balance policy as of June 30, 2025.

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 2024-2025.

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.

11

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 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 include property, vehicles, and equipment. These assets are reported in the 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 $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, 2025 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. 102, Certain Risk disclosures effective for fiscal year beginning after June 15, 2024.



In April of 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements.



In June 2025, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets

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.

13

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

New and Upcoming Accounting Pronouncements (cont.)

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 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.

14

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 NOTE 1 -

Nature of Business and Significant Accounting Policies (cont.)

New and Upcoming Accounting Pronouncements (cont.)

In June 2025, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets.

This requires state and local governments to provide detailed information about capital assets in notes to financial statements. Statement No. 34, Basic Financial Statements— and Management’s Discussion and Analysis—for State and Local Governments, requires certain information regarding capital assets to be presented by major class. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets.

This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame.

This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.

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 (excluding WGIF investments) totaled $262,046 and the bank balance was $274,903 as of June 30, 2025. Of the bank deposit balance, $250,000 was covered by federal depository insurance, and the remainder was collateralized up to an additional $80,595 by a financial institution where the District holds most of its deposits.

The District also held $1,150,421 of money market funds in the Wyoming Government Investment Fund as of June 30, 2025. The money market funds are not insured but rated AAAf. 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.

15

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 NOTE 2 -

Deposits and Investments (cont.)

The District's certificates of deposit are summarized in the table below.

Fair Value

Certificates of Deposit WGIF - CD's

$

2,374,000

Less than 1 Month

Maturity in Months 6-12

Maturity in Months 12-24

Rates

Rating

$

$ 1,179,000

$ 1,195,000

4.28% - 5.15%

AAAf

0

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 Wyoming Government Investment Fund 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, 2025, the District had 30% of the cash balance in one financial institution.

Deposits are summarized in the table below as of June 30, 2025.

Deposits Cash in banks

$

Investments Wyoming Government Investment Fund (WGIF)- money marke Wyoming Government Investment Fund (WGIF) - CD's

NOTE 3 -

1,150,421 2,374,000 $

Total Cash and Investments

262,046

3,786,467

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.

16

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 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.

Year 2026 2027 2028 2029 Total

$

Payment 14,510 15,344 12,031 71

$

41,956

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 Construction in Process

Balance June 30, 2024

Additions

Deductions

Balance June 30, 2025

$

$

$

$

94,500 0

0 145,211

(10,000) 0

84,500 145,211

Total Non Depciable Capital Assets

94,500

145,211

(10,000)

229,711

Capital Assets, Being Depreciated Vehicles

20,110

0

0

20,110

Less Accumulated Depreciation

(3,202)

(4,022)

0

(7,224)

111,408

$ 141,189

Governmental Activities Capital Assets, Net

NOTE 6 -

$

$

(10,000)

$

242,597

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, 2025.

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TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 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, 2025. 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.

D.

Commitments The District is operating as its own general contractor in regards to construction in process related to the maintenance bay project. Total estimated costs that remain on the project are approximately $299,789.

NOTE 7 -

Concentrations The District had approximately 60% of revenues come from government sources as well as reimbursement of construction costs from a related governmental District, Teton Village Resort District.

The District had a concentration in expenses as three vendors accounted for 53% of total expenditures of the District.

NOTE 8 -

Subsequent Events Management has evaluated subsequent events through the date November 11, 2025 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, 2025

Actual Budgetary Basis

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

$

882,566 25,000 5,500 0 103,714

$

882,566 25,000 14,400 423,600 74,252

$

898,516 26,679 5,399 423,600 141,291

Variance With Final Budget Positive (Negative) $

15,950 1,679 (9,001) 0 67,039

Total Revenues

1,016,780

1,419,818

1,495,485

75,667

EXPENDITURES General government General government Public works

402,850 1,477,030

402,850 452,000

127,505 319,750

275,345 132,250

Total Expenditures

1,879,880

854,850

447,255

407,595

Excess of revenues over (under) expenditures

(863,100)

564,968

1,048,230

483,262

FUND BALANCE - JULY 1

2,588,237

2,588,237

2,588,237

FUND BALANCE - JUNE 30

$ 1,725,137

$ 3,153,205

$

3,636,467

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

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025

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, 2025, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated November 11, 2025.

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, 2025 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 November 11, 2025

21

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT SCHEDULE OF FINDINGS YEAR ENDED JUNE 30, 2025 None

22

TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 TETON VILLAGE IMPROVEMENT AND SERVICE DISTRICT SCHEDULE OF PRIOR YEAR FINDINGS YEAR ENDED JUNE 30, 2024 None

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