TVSFD Audit FYE6.30.2023

TETON VILLAGE SPECIAL FIRE DISTRICT Financial Statements and Supplementary Information For the year ended June 30, 2023

TETON VILLAGE SPECIAL FIRE DISTRICT Financial Statements

Table of Contents

Independent Auditor’s Report .......................................................................................................................... 1 Government‐wide financial statements Statement of net position ........................................................................................................................ 4 Statement of activities ............................................................................................................................... 5 Fund financial statements Balance sheet – Governmental fund ................................................................................................... 6 Reconciliation of the governmental fund balance sheet to the statement of net position…………………………………………………………………………………….. 7 Statement of revenues, expenditures and changes in fund balance – Governmental fund .............................................................................................. 8 Reconciliation of the statement of revenues, expenditures and changes in fund balance of the governmental fund to the statement of activities…………………………………………………………………………. ....................... 9 Notes to financial statements ......................................................................................................................... 10 Required supplementary information Statement of revenues, expenditures and changes in fund balances – budget to actual – governmental fund (unaudited) ........................... 25 Schedule of the proportionate share of the net position liability (unaudited) ............... 26 Schedule of changes in net pension liability (unaudited) ......................................................... 27 Schedule of contributions (unaudited) ........................................................................................... 28 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…………………………………………………………..……….……...29

Independent Auditor’s Report

December 20, 2023

Board of Directors Teton Village Special Fire District Teton Village, WY 83025 Opinions

We have audited the accompanying financial statements of the governmental activities of the Teton Village Special Fire District as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise Teton Village Special Fire 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 financial position of the governmental activities of the Teton Village Special Fire, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 Special Fire 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.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Teton Village Special Fire District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

PO BOX 5, Jackson, WY 83001 | thompsonpalmer.com | O: 307.733.5160 F: 307.739.1415 | 275 E Broadway

Auditor’s Responsibilities 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 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.

In performing an audit in accordance with generally accepted 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 Special Fire 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 Special Fire 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.

Change in Accounting Principle As described in Note III-D to the financial statements, in 2023, the District adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.

Other Matters Required Supplementary Information Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United State of America require that the statement of revenues, expenditures and changes in fund balances – budget and actual on page 24 – 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 required supplementary information in accordance with auditing standards generally accepted in the United State 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 20, 2023, on our consideration of the Teton Village Special Fire District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 Special Fire District’s internal control over financial reporting and compliance.

Thompson Palmer & Associates, PC Certified Public Accountants

TETON VILLAGE SPECIAL FIRE DISTRICT Government‐Wide Statement of Net Position June 30, 2023

Governmental Activities Assets Cash and cash equivalents Restricted cash - bond escrow Investments Receivables Interest receivable Prepaid expenses Capital assets (net of accumulated depreciation): Buildings Vehicles Furniture and equipment Construction in process Right of use lease asset Loan fees (net of accumulated amortization): Total assets

$

1,644,801 1,473,390 94,649 96,200 68,248 2,799 5,098,021

Deferred outflow of resources Liabilities Current liabilities: Accounts payable Deposits payable Accrued interest payable Due within one year - bond payable Due within one year - lease liability Non-current liabilities: Due within more than one year - lease liability Net pension liability Total liabilities

121,161

$

148,573 5,675 699 44,933 12,941 55,591 141,063 409,475

Deferred inflow of resources Net position Net investment in capital assets Restricted for bond payments Unrestricted Total net position

906,720 36,532 725,000 19,686 10,642 19,357

22,475

$

3,279,562 36,532 1,471,139 4,787,233

See accompanying notes to the financial statements and independent accountant's review report 4

TETON VILLAGE SPECIAL FIRE DISTRICT Government‐Wide Statement of Activities For the Year Ended June 30, 2023

Governmental Activities Program expenses: Fire protection: Personal services Materials and services Interest Total program expenses

$

Program revenues: Fundraising Voluntary assessments Total program revenues

224,958 574,799 2,558 802,315

14,580 9,464 24,044

Net program revenues

(778,271)

General revenues: Taxes Investment earnings Rental income Total general revenues

1,081,908 34,596 23,760 1,140,264

Increase in net position

361,994 4,425,239

Net position - beginning of year Net position - end of year

$

4,787,233

See accompanying notes to the financial statements and independent accountant's review report 5

TETON VILLAGE SPECIAL FIRE DISTRICT Balance Sheet Governmental Fund June 30, 2023

Assets Cash and cash equivalents Restricted cash - bond escrow Investments Receivables Interest receivable Prepaids Total assets

$

Liabilities and fund balance Liabilities Accounts payable Deposits payable Total liabilities Fund balance Committed Assigned Unassigned Total fund balance

906,720 36,532 725,000 19,686 10,642 19,357 1,717,936

148,573 5,675 154,248

$

36,532 650,000 877,156 1,563,688

See accompanying notes to the financial statements and independent accountant's review report 6

TETON VILLAGE SPECIAL FIRE DISTRICT Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position June 30, 2023

Amounts reported for governmental activities in the statement of net position are different because: Fund balance

$

1,563,688

Capital assets used in governmental activities are not financial resources, and therefore are not reported in fund balance.

Buildings Vehicles Furniture and equipment Construction in process Right of use asset Intangible assets Accumulated depreciation Accumulated amortization

$

2,221,760 2,464,904 954,953 96,200 80,520 9,260 (2,428,779) (18,733)

3,380,085

Deferred outflows of resources related to pensions are not reported in the funds.

121,161

Long-term liabilities including bonds payable and accrued are not due in the current period, and therefore are not reported in fund balance.

Accrued interest payable Bond payable Lease liability Net pension liability

$

(699) (44,933) (68,532) (141,063)

(255,227)

Deferred inflows of resources related to pensions are not reported in the funds.

Net position of governmental activities

(22,475) $

4,787,232

See accompanying notes to the financial statements and independent accountant's review report 7

TETON VILLAGE SPECIAL FIRE DISTRICT Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund For the Year Ended June 30, 2023

Revenues Taxes Voluntary assessments Investment earnings Total revenues

$

1,081,908 9,464 34,596 1,125,968

Expenditures Fire protection: Personal services Materials and services Capital outlay Debt service: Loan principal Loan interest Total expenditures

54,500 2,994 701,192

Excess of revenues over expenditures

424,776

Other financing sources (uses) Fundraising Rental income Total other financing sources (uses)

14,580 23,760 38,340

Net change in fund balance

463,116

194,854 352,644 96,200

1,100,572

Fund balance - beginning of year Fund balance - end of year

$

1,563,688

See accompanying notes to the financial statements and independent accountant's review report 8

TETON VILLAGE SPECIAL FIRE DISTRICT Reconciliation of the Statement of Revenues Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities For the Year Ended June 30, 2023

$

Net change in fund balance - Governmental fund

463,116

Amounts reported in the statement of activities are different because: Governmental funds reported capital outlay as expenditures.

However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense. This is the amount by which capital outlay exceeded depreciation and amortization expense.

Capital outlay Depreciation and amortization

168,404 (213,839)

(45,435)

Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.

(26,247)

The net effect of transactions involving net pension liability, deferred outflows and inflows of resources for pensions, and pension expense is to decrease net position.

(30,104)

Some expenses reported in the statement of activities do not the use of current financial resources and therefore are not reported as expenditures in government funds. This is amount by which accrued interest payable decreased during the year.

663

Change in net position of governmental activities

$

$

361,994

See accompanying notes to the financial statements and independent accountant's review report 9

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 I. Summary of significant accounting policies A. Reporting entity The Teton Village Special Fire District is governed by an elected three member board. The District provides fire protection services for the Teton Village area of Teton County, Wyoming.

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 Teton Village Special Fire District conform to generally accepted accounting principles as applicable to governments.

B. Government‐wide and fund financial statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the activities of the District. The fund financial statements provide information about the District’s funds.

The statement of activities demonstrates the degree, to which the direct expenses, of a given function or segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

C. Measurement focus, basis of accounting, and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

10

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 I. Summary of significant accounting policies (continued) C. Measurement focus, basis of accounting, and financial statement presentation Interest income associated with the current fiscal period is considered to be susceptible to accrual and so has been recognized as revenues of the current fiscal period. Governmental grants are recognized as revenue as soon as all the eligibility requirements imposed by the provider have been met. All other revenue items are considered to be measurable and available only when cash is received by the District.

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.

D. Assets, liabilities, and net position or fund equity 1. Deposits and investments The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. The District also holds cash in an escrow account used to service the bonds payable.

This cash is considered restricted for these financial statements.

2. Receivables All receivables are considered collectible. The District uses the direct write-off method and therefore, only recognizes bad debt expense when an account is considered uncollectible.

3. Inventories and prepaid items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

4. Capital assets Capital assets, which include property, vehicles, equipment, and furnishings, are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Assets are recorded at historical cost or estimated historical cost if purchased or constructed.

Donated capital assets are recorded at estimated fair market value at the date of donation.

11

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 I. Summary of significant accounting policies (continued) D. Assets, liabilities, and net position or fund equity 4. Capital assets Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, vehicles and equipment are depreciated using the straight line method over the following estimated useful lives: Assets Buildings Vehicles Equipment Furnishings Computer equipment

Years 30 30 5-10 10 5

5. Long‐term obligations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, as well as issuance costs, if material, are deferred and amortized over the life of the bonds using the straight line method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.

Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

6. Fund balances and net position In the fund financial statements, governmental funds may report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. At the end of the current year $36,532 in cash was reserved to make bond payments.

Net assets in government wide and proprietary fund financial statements are classified as invested in capital assets, net of related debt; restricted and unrestricted. Restricted net assets represent constraints on resources that are either externally imposed by creditors, grantors, contributors or laws and regulations of other governments.

12

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 I. Summary of significant accounting policies (continued) D. Assets, liabilities, and net position or fund equity 7. Accounting estimates The preparation of financial statements require management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions during the reporting period. Actual amounts may differ from estimates.

8. Pension assets, liabilities & deferred outflows of resources For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Wyoming Retirement System (“WRS”) and additions to/deductions from WRS’s fiduciary net position have been determined on the same basis as they are reported by WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. In addition to assets, the statement of net position reports a separate section for deferred outflows of resources which represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.

For the year ended June 30, 2022 the deferred outflows and inflows of resources are related to pensions.

9. Leases In June 2017, the GASB issued Statement No. 87, Leases, which improves accounting and financing reporting for leases by governments. The Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that were previously classified as operating leases. The District adopted this guidance for the period ended June 30, 2023, and it did not have a material impact on the District’s financial statements.

II. Stewardship, compliance and accountability A. Budgets and budgetary accounting The District follows these procedures in establishing the budgetary data reflected in the financial statements: The District Board prepares a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. A public hearing is conducted on the third Thursday in July to obtain public comments. The budget is adopted on the third Thursday of July.

The District Board may, after publication of notice, by resolution amend the budget revenues or expenditures. All appropriations lapse at the close of the budget year.

13

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 III. Detailed notes on all funds A. Deposits and investments Cash and investments are carried at fair value in accordance with GASB Statement No. 31. They consist of cash in banks, governmental bond funds, U.S. agency securities, a state pooled investment fund, and certificates of deposit at a brokerage.

Wyoming State Statutes allow the District to invest in U.S. and state and local government securities and accounts of any bank and savings associations which are federally insured. Stocks and bonds of private corporations as well as repurchase and reverse repurchase agreements are a prohibited investment means for the District.

Wyoming government investment fund (WGIF) is a statutory trust organized and existing under the laws of the State of Wyoming and is specifically designed for investment by Wyoming public entities.

The fund was established for the purpose of allowing Wyoming government entities to pool their investment funds to obtain the highest investment yield, while attempting to maintain liquidity and preserve capital. Its portfolio consists solely of investments permitted by Wyoming statues. An investment in WGIF is not insured or guaranteed by the FDIC or any other governmental agency.

All of the District’s investments follow the Wyoming State Statutes for investments of public entities.

Cash and investments are carried at fair value in accordance with GASB Statement No. 31. They consist of cash in banks and Wyoming Government Investment Fund of $943,252.

Cash, cash equivalents and investments as of June 30, 2023 consist of the following: Cash and cash equivalents Deposits with financial institutions Deposits with US Bank - Bond Escrow Deposits with Wyoming Government Investment Fund Total cash and cash equivalents Investments Certificates of deposit with Wyoming Government Investment Fund Total investments

14

$

$

577,539 36,532 329,181 943,252

$

725,000

$

725,000

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 III. Detailed notes on all funds (continued) A. Deposits and investments At year end the carrying amount and bank balances of the District's depository balances and their collateralized status were as follows: Bank balances Insured or collateralized by securities held by the District or its agent in the District's name Collateralized with securities held by the pledging institution's trust department or agent in entity's name Uninsured or uncollateralized Total

$ 250,000

Carrying amount $

250,000

333,855

327,539

$ 583,855

577,539

$

B. Receivables Receivables as of year end for the District are as follows: Mill levy receivables Other receivables

$

18,297 1,389

Total receivables

$

19,686

15

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 III. Detailed notes on all funds (continued) C. Capital assets Capital asset activity for the year ended was as follows: Beginning balance Capital assets Buildings Vehicles Furniture and equipment Construction in process Right of use lease asset Total capital assets Less accumulated depreciation and amortization for: Buildings Vehicles Furniture and equipment Construction in process Right of use lease asset Total accumulated depreciation Governmental activities capital assets, net

$ 2,221,760 2,464,904 954,953 -

Increases $

96,200 80,520

Ending balance

Decreases $

-

$

-

2,221,760 2,464,904 954,953 96,200 80,520

5,641,617

176,720

-

5,818,337

517,472 895,189 806,544 -

59,487 96,326 53,761 12,272

-

576,959 991,515 860,305 12,272

2,219,205

221,846

-

2,441,051

$ 3,422,412

$

(45,126)

$

-

$

3,377,286

Depreciation expense of $209,574 was charged to functions/programs of the District.

D. Long‐term debt Bond payable On February 19, 2014 the District issued a fixed rate general obligation refunding bond with a face amount of $380,000. The bond bears interest at 3.35% per annum with principal and interest payable th in semi-annual installments of $22,447 on the 15 of July and January, until paid in full on January 15, 2024. The loan balance at year end is $44,933.

16

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 III. Detailed notes on all funds (continued) D. Long‐term debt Right of use lease liability The District entered into a three year lease agreement for use of a storage space with the Teton Village Improvement and Service District on April 1, 2020. This agreement was renewed for an additional five years effective April 1, 2023.

The lease in effect at year end is for five years commencing on April 1, 2023 and terminating on March 31, 2028.

The annual rent is $14,400 payable in twelve equal monthly installments of $1,200 for the first year of the lease with annual increases of 3%.

Per GASB 87 statement, the amount of $71,840 has been included in the Statement of Net Position as a right of use lease asset calculated by taking the present value of future lease payments for 5 years at a discount rate of 2.5%. Lease liability as of the ending of the year was $68,532. The asset is being amortized over the 5 year lease term using the straight line method.

Annual debt service requirements to maturity for the bond and lease payable are as follows: Year ending June 30,

Principal

Interest

2024 2025 2026 2027 2028

$ 57,874 13,709 14,509 15,343 12,030

$

2,715 1,234 883 510 126

Total

$ 113,465

$

5,468

Long-term liability activity for the year ended was as follows: Beginning balance 2014 series bond Right of use lease liability Total

$

Ending balance

Increases

Decreases

87,218 -

$

68,532

$ 42,285 -

$

44,933 68,532

87,218

$

68,532

$ 42,285

$

113,465

17

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 III. Detailed notes on all funds (continued) E. Fund balances Fund balance is classified depending on the relative strength of the spending constraints placed on the purposes for which resources can be used as follows: Non‐spendable fund balance - amounts that cannot be spent because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact.

Restricted fund balance – amounts constrained to specific purposes externally imposed by creditors (such as through debt covenants), grantor and contributors, or laws, or regulations of other governments, or through constitutional provisions, or by enabling legislation.

Committed fund balance – amounts that can only be used for specific purposes, pursuant to constraints imposed by formal action of the government’s highest level of decision making authority.

Assigned fund balance – amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.

Unassigned fund balance – amounts that represent fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. In other governmental funds, it may be necessary to report a negative residual balance as unassigned.

IV. Other information A. Pension plans The District participates in the Wyoming Retirement System (WRS), a statewide cost-sharing multiple-employer volunteer firefighter, EMT and search and rescue retirement system administered by the State of Wyoming Retirement System Board. All volunteer firefighters of the District are eligible to participate. The WRS provides retirement, disability and death benefits according to predetermined formulas. Benefits are established by Title 9, Chapter 3 of the Wyoming Statutes.

Volunteer firefighters are required to contribute $18.75 per month. Legislation enacted in 1979 allows the employer to pay any or all of the employees’ contribution in addition to the matching contribution. The District paid $2,531 of the required firefighter’s contribution for the year ended June 30, 2023. Contribution rates are established by Title 9, Chapter 3 of the Wyoming Statutes. The District’s contributions to the WRS for the year ended June 30, 2023, were $2,531 and employee contributions were $394 which equals the required contribution for the year.

GASB Statement No. 68 Accounting and Financial Reporting for Pensions has been adopted by the District. This statement relates to accounting and financial reporting issues only, it does not address the District's approach to funding its pension obligations, which is set by state statutes.

18

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 IV. Other information (continued) A. Pension plans Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2023, the District reported a liability of $141,063 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2022 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2022 and rolled-forward using generally accepted actuarial procedures. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plans relative to the projected contributions of all participating governmental entities, actuarially determined. The schedule below shows the District’s proportionate share of the net pension liability at June 30, 2023, the proportionate portion at the measurement date of December 31, 2022, and the change in the proportion from its proportion measured as of December 31, 2021.

Pension liability at June 30, 2023 Proportion at December 31, 2022 Increase (decrease) from December 31, 2021

$ 141,063 0.5744538% 0.0757999%

For the year ended June 30, 2023 the District recognized pension expense of $32,935, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Net difference between projected and actual earnings on pension plan investments

$

18,327

Change in share of deferred outflows and assumptions

3,179

Change in proportionate share

98,324

Contributions subsequent to the measurement date Total deferred outflows

$

1,331 121,161

$

-

$

(19,236)

$

(3,239) (22,475)

Deferred Inflows Net difference between projected and actual earnings on pension plan investments Change in proportionate share Net difference between expected and actual experience on pension liability Total deferred inflows 19

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 IV. Other information (continued) A. Pension plans Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The $1,131 reported as deferred outflows of resources related to pensions results from District contributions prior to the fiscal year end, but subsequent to the measurement date of December 31, 2022. These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

2024 $ (6,998) 2025 2,731 2026 5,942 2027 16,652 $ 18,327

$

$

1,522 975 682 3,179

$

$

32,775 32,775 32,774 98,324

$

$

-

$

(4,809) (4,809) (4,809) (4,809) $ (19,236)

$

$

(927) (927) (927) (458) (3,239)

Actuarial Assumptions Inflation Investment rate of return

2.25 percent 6.80 percent

Mortality rates were based on the PUB-2010 General Healthy Mortality table, amount weighted, fully generational, projected with the MP-2020 ultimate scale.

The assumed rate of investment return was adopted by the plan’s trustees after considering input from the plan’s investment consultant(s) and actuary(s). Additional information about the assumed rate of investment return is included in the WRS actuarial valuation report as of January 1, 2022. In addition, a five year experience study was completed as of December 31, 2020 and this study provides a detailed analysis regarding recommendations on the long term rates for inflation and the real rate of return. The assumed rate of investment return of 6.80% (real return net of inflation of 4.55%) falls within a reasonable range of the long-term expected rate of return.

The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which expected future real rates of return (expected arithmetic returns, net of pension plan investment expense and inflation) are developed for each major asset class. These real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

20

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 IV. Other information (continued) A. Pension plans Actuarial Assumptions For each major asset class that is included in the pension plan’s target allocation for the fiscal year 2022, these best estimates are summarized in the following table: Long-Term Target Allocation Asset Class Cash Fixed income Equity Marketable alternatives Private markets Gold Totals

0.50% 20.00% 51.50% 16.00% 10.50% 1.50% 100.00%

Expected Real Rate of Return 0.32% 4.05% 9.00% 6.02% 7.67% 0.72% 7.23%

The figures in the above table were supplied by Meketa Investment Group, the investment consulting firm to the Wyoming Retirement System.

WRS’s success in achieving the 6.80% assumed investment return objective is evaluated on an ongoing basis over reasonably long periods of time (5 to 7 years).

Discount rate Projected benefit payments are required to be discounted to their actuarial present values using a single discount rate that reflects 1) a long-term expected rate of return on pension plan investments (to the extent that the plan’s fiduciary net position is projected to be sufficient to pay benefits using a 100 year analysis) and 2) tax-exempt municipal bond rate based on an index of 20 year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). The expected rate of return on pension plan investments is 6.80%, the municipal bond rate is 4.05%.

21

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 IV. Other information (continued) A. Pension plans Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 6.80 percent, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower (5.80 percent) or one percentage-point higher (7.80 percent) than the current rate.

Using 5.80% Discount $ 225,603

Net pension liability

Using 6.80% Discount $ 141,063

Using 7.80% Discount $ 70,928

Pension Plan Fiduciary Net Position The Wyoming Retirement System has detailed information about the Volunteer Firefighter Pension Plan including audited financial statements and information about the fiduciary net position. The report is available on their website at http://retirement.state.wy.us.

The plan currently has 1,646 retirees and beneficiaries, 2,286 inactive non-retired members and 2,366 active members for a total of 6,298.

B. Risk management The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance.

The District’s insurance program includes commercial insurance for property, general liability, automobile liability, public official liability, theft and other miscellaneous bonds.

Workers compensation coverage is provided through the State of Wyoming. The Districts only responsibility is to pay the premium based upon predefined rates. The State is obligated to provide coverage for employees if a claim is filed.

C. Budget The District expenditures, in aggregate, did not exceed the budgeted amounts during the year ended June 30, 2023.

22

TETON VILLAGE SPECIAL FIRE DISTRICT Notes to Financial Statements June 30, 2023 IV. Other information (continued) D. Subsequent events Management has evaluated subsequent events through December 20, 2023, the date on which the financial statements were available to be issued.

E. Management discussion and analysis The omission of the Management Discussion and Analysis is a common practice among entities that are similar in size and operations to that of the District. Management does not feel that the omission has a material effect on the presentation of the financial statements as a whole.

F. Commitments and contingencies At June 30, 2023 the District had remaining commitments for uncompleted construction contracts for the apartment remodel totaling $32,800.

G. Rounding convention A rounding convention to the nearest whole dollar has been applied throughout this report; therefore, the precision displayed in any monetary amount is plus or minus $2. Without the overhead costs of manually balancing each column, the sum of the displayed amounts in a column may not be equal to the total displayed.

23

TETON VILLAGE SPECIAL FIRE DISTRICT REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) JUNE 30, 2023

24

TETON VILLAGE SPECIAL FIRE DISTRICT Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual Governmental Fund (Unaudited) For the Year Ended June 30, 2023

Budgeted Amounts Original Final Revenues Taxes Voluntary assessments Investment earnings Total revenues

Actual

$ 1,035,116 23,880 1,250 1,060,246

$ 1,035,116 23,880 1,250 1,060,246

$ 1,081,908 9,464 34,596 1,125,968

Positive <Negative> Variance $

46,792 (14,416) 33,346 65,722

Expenditures Fire protection: Personal serivces Materials and services Captial outlay Debt service: Loan principal Loan interest Total expenditures

286,700 521,644 10,000

286,700 521,644 10,000

194,854 352,644 96,200

91,846 169,000 (86,200)

818,344

818,344

54,500 2,994 701,192

(54,500) (2,994) 117,152

Excess of revenues over expenditures

241,902

241,902

424,776

(51,429)

5,000 5,000

5,000 5,000

14,580 23,760 38,340

14,580 18,760 33,340

Net change in fund balance

246,902

246,902

463,116

Fund balance - beginning

1,100,572

1,100,572

1,100,572

Fund balance - ending

$ 1,347,474

$ 1,347,474

$ 1,563,688

Other financing sources Fundraising Rental income Total other financing sources

25

TETON VILLAGE SPECIAL FIRE DISTRICT Schedule of the Proportionate Share of the Net Pension Liability (Unaudited) For the Years Ended December 31,

2015

2016

2017

2018

2019

2020

2021

2022

0.7586987%

0.7697388%

0.7395317%

0.7468508%

0.7366926%

0.7256663%

0.6502537%

0.5744538%

Proportionate share of the net pension liability

240,445

244,360

211,545

265,809

206,167

166,504

81,831

141,063

Plan fiduciary net position as a percentage of the the total pension liability

69.16%

69.99%

74.11%

68.18%

75.64%

80.53%

89.62%

80.04%

Volunteer Firefighter, EMT, and Search and Rescue Pension Plan Proportion of the net pension liability

26

TETON VILLAGE SPECIAL FIRE DISTRICT Schedule of Changes in Net Pension Liability (Unaudited) For the Years Ended December 31,

Total Pension Liability Service cost Interest on total pension liability Benefit changes Difference-expected and actual experience Assumption changes Benefit payments Refunds Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a)

2015 $

$

1,253,883 7,520,888 21,809,884 (211,035) (472,252) (4,832,911) (34,719) 25,033,738 77,723,993 102,757,731

2016 $

$

1,285,552 7,761,646 (479,308) (5,506,699) (35,162) 3,026,029 102,757,731 105,783,760

2017 $

$

1,412,440 7,372,254 (3,538,907) 5,273,789 (5,780,647) (33,242) 4,705,687 105,783,760 110,489,447

2018 $

$

1,426,154 7,474,042 (1,397,503) (6,101,659) (44,163) 1,356,871 110,489,447 111,846,318

2019 $

$

1,432,649 7,685,536 441,209 (6,466,593) (40,182) 3,052,619 111,846,319 114,898,938

2020 $

$

1,501,573 7,885,554

2021 $

1,805,233 7,891,422

2022 $

1,792,369 8,011,636

361,487 (6,757,505) (53,161)

151,112 646,349 (7,027,915) (31,778)

(725,126) (7,282,386) (57,233)

2,937,948 114,898,938 117,836,886

3,434,423 117,836,886 121,271,309

1,739,260 121,271,309 123,010,569

$

$

Plan Fiduciary Net Position Fire insurance premium tax and employer contributions Employee contributions Pension plan net investment income (loss) Benefit payments Refunds Pension plan administrative expense Other

$

2,238,612 417,406 (675,297) (4,832,911) (34,719) (73,412) (3,470)

$

3,198,930 459,363 4,939,925 (5,506,699) (35,162) (80,904) (3,453)

$

3,290,994 425,592 10,035,753 (5,780,647) (33,242) (88,835) (3,453)

$

2,959,943 434,522 (2,782,682) (6,101,659) (44,163) (91,195) (3,201)

$

3,118,824 437,255 13,701,406 (6,466,593) (40,182) (89,451) (3,455)

$

5,509,382 520,788 8,848,756 (6,757,505) (53,161) (86,519) (3,290)

$

4,670,469 573,113 15,709,526 (7,027,915) (31,778) (95,155) (3,410)

$

3,866,570 558,326 (7,203,572) (7,282,386) (57,233) (107,648) (6,300)

Net change in plan fiduciary net position

$

(2,963,791)

$

2,972,000

$

7,846,162

$

(5,628,435)

$

10,657,804

$

7,978,451

$

13,794,850

$

(10,232,243)

Plan fiduciary net position - beginning (a)

74,029,777

71,065,986

74,037,986

81,884,148

76,255,714

86,913,518

94,891,969

108,686,819

Plan fiduciary net position - ending (b)

71,065,986

74,037,986

81,884,148

76,255,713

86,913,518

94,891,969

108,686,819

98,454,576

Net pension liability - ending (a) - (b) Proportion of liability Proportionate share of liability

$

31,691,745

$

31,745,774

$

28,605,299

$

35,590,605

$

27,985,420

$

22,944,917

$

12,584,490

$

24,555,993

0.7586987%

0.7697388%

0.7395317%

0.7468508%

0.7366926%

0.7256663%

0.6502537%

0.5744538%

240,445

244,360

211,545

265,809

206,167

166,504

81,831

141,063

27

TETON VILLAGE SPECIAL FIRE DISTRICT Schedule of Contributions (Unaudited) For the Years Ended June 30,

2015 Contractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess)

$

2016

2,625

$

2017

3,030

$

2018

3,015

$

2019

2,895

$

2020

2,925

$

2021

3,105

$

2022

3,330

$

2023

2,644

$

2,531

(2,625)

(3,030)

(3,015)

(2,895)

(2,925)

(3,105)

(3,330)

(2,644)

(2,531)

-

-

-

-

-

-

-

-

-

28

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 Independent Auditor’s Report December 20, 2023 Board of Directors Teton Village Special Fire District Teton Village, WY 83025

We have audited, 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, the financial statements of the governmental activities and governmental fund of Teton Village Special Fire District as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents and have issued our report thereon dated December 20, 2023.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Teton Village Special Fire 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 Teton Village Special Fire 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.

29

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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

Compliance and Other Matters As part of obtaining reasonable assurance about whether Teton Village Special Fire District's financial statements are free of 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 determination of 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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.

Thompson, Palmer & Associates, PC Certified Public Accountants

29