Notes to the Financial Statements
TETON VILLAGE WATER AND SEWER DISTRICT NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1 - Nature of Business and Significant Accounting Policies
General Information
Teton Village Water and Sewer District is a public utility district which operates a water and sewage treatment facility within Teton Village. The District was created in 1969 for the necessity and convenience for the residents of Teton Village located in Teton Village, Wyoming. The District is governed by a five 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 Trustees. The District is managed and controlled by a Board of five Trustees who serve without compensation.
The District has no component units included within the reporting entity.
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 and long term debt associated with the fixed assets. 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 other than long term debt) are not recorded in these financial statements.
Proprietary Fund
The accompanying financial statements have been prepared using the modified cash basis of accounting This basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America
Enterprise funds distinguish operating revenues and expenses from non operating items. Operating revenues and expenses generally result from providing services in connection with the enterprise fund’s principal ongoing operation. The principal operating revenues for the District are charged to customers for providing water and sewer services. Operating expenses include cost of services, administrative expenses and depreciation. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses.
NOTE 1 - Nature of Business and Significant Accounting Policies (cont.)
Statement of Cash Flows
For purposes of the statement of cash flows, the District considers all highly liquid assets (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents.
Net Position
The Teton Village Water and Sewer District applies restricted, then unrestricted resources when an expense is incurred for purposes that satisfy the related definition and criteria for the related net position classification. Under the reporting for proprietary funds only restricted and unrestricted net position is presented on the financial statements.
Net Position consists of restricted and unrestricted amounts. The District records restrictions to indicate that a portion of the net position is segregated for a specific future use and does not represent current available expendable financial sources. The District has no restrictions on funds under formal or legal obligations as of June 30, 2025
Net position is a function of assets minus liabilities equals net position under the modified cash basis financial statements. 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 maintained emergency reserves at $1,005,087 The purpose of maintaining emergency reserves is due to the fact that the District is solely reliant on tax revenues and assessments in a county that is largely reliant property tax revenues. These reserves are meant to enable the District to continue the level of services to property owners of Teton Village
The District has not elected to adopt a minimum net position 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 management, prepares and approves the District's budget prior to May 1 for the fiscal year commencing July 1.
• 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.
NOTE 1 - Nature of Business and Significant Accounting Policies (cont.)
Revenue Recognition
Amounts reported as revenues include 1) charges to customers for water and sewer services or other applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Capital Assets
Land, buildings and equipment are carried at cost. Capital assets are defined by the government as equipment 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. Major renewals and betterments are capitalized. Maintenance, repairs and minor renewals are expended as incurred. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts.
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.
Depreciation Method and Useful Lives
Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:
Years
Water supply and storage 5 - 50 years
Water distribution system 7 - 50 years
Sewer collection system 20 - 50 years
Wastewater treatment plant and interceptor sewers5 - 50 years
Other assets 5 - 50 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
Compensated Absences
Employees accrue compensatory paid time off over the course of their employment on a graduated scale based on years of service that range from 55.2 annually for the first year to 147.6 for the 20th year of employment. A maximum of 100 hours may be carried over to the following year and all compensatory paid time off is paid out upon termination. As of June 30, 2025 the district had $52,763 in accrued compensatory paid time off that is not shown on the Statement of Net Position as it is presented on the modified cash basis of accounting.
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.
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
NOTE 1 - Nature of Business and Significant Accounting Policies (cont.)
New and Upcoming Accounting Pronouncements (cont.)
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.
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.
NOTE 1 - Nature of Business and Significant Accounting Policies (cont.)
New and Upcoming Accounting Pronouncements (cont.)
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 (cash and money market funds) totaled $866,565 and the bank balance was $781,830 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 $19,941 by a financial institution where the District holds most of its deposits Included in the bank deposit balance are money market funds held with the Wyoming Government investment pool totaling $621,660. The Government Investment Pool is rated AAAm and is not insured.
Statutes authorize the District to invest in various instruments of the federal government and its agencies, savings certificates of savings and loan associations, bank certificates of deposit and investment pools that purchase allowable investments. The District has elected to invest cash in excess of immediate needs in the Wyoming Government Investment Fund (WGIF).
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.
NOTE 2 - Deposits and Investments (cont.)
Investments
The District's certificates of deposit are summarized in the table below. The certificates of deposit listed below are rated AAAm.
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 $5,657,000 invested in the Wyoming Government Investment Fund which invests primarily in certificates of deposits in various financial institutions in amounts below the Federal Deposit Insurance Corporation limit of $250,000 as shown in the table above.
The District has invested funds with an external investment pool, mostly in Certificates of Deposit which are specifically excluded from Government Accounting Standards Board Statement (GASS) No. 72, Fair Value Measurement and Application. Unrealized gains and losses of investments as well as accrued interest receivable on certificates of deposit are not included in the statement of revenues, expenditures, and changes in net position for the District (as a proprietary fund) given that the financial statements are presented on the modified cash basis of accounting.
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. The District had a concentration of its deposits in one financial institution that is used for its primary operating account and also holds a Certificate of Deposit with the institution.
Deposits and Investments are summarized in the table below as of June 30, 2025.
NOTE 3 - Property Taxes
6,523,565 $
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 single revenue source for the District.
NOTE 4 - Lease Receivable
The District entered into an agreement to lease office space to the Teton Village Association Improvement and Service District on July 1, 2008. The terms of the lease were fifteen (15) years commencing on July 1, 2008 and terminating on June 30, 2023. The District renewed for one (1) additional five (5) year term effective July 1, 2023 and terminating on June 30, 2028. The District has the right to renew for one (1) additional five (5) year term providing they are not in default under the terms of the lease.
The annual rent is sixteen thousand eight hundred dollars ($16,800) per year, payable in twelve (12) equal monthly installments of one thousand four hundred dollars ($1,400).
As the District has elected the modified cash basis presentation, GASB 87, Leases, has not been applied which would include the recognition of a right of use asset and liability.
The table below presents the incoming cash flows associated with the lease over the remaining lease term.
202616,800 $
The District also rents three apartments to employees as part of a condition of their employment. Rents range from $550 to $235 a month. As the lease expires upon the termination of employment an estimate of the lease terms cannot be determined.
NOTE 5 - Capital Assets
The table below summarizes the fixed asset activity for the District as of June 30, 2025.
NOTE 6 - Notes Payable
On October 7, 2021, the District signed a promissory note in the amount of $2,900,000, with the Wyoming Office of State Loans and Investments with funds provided by the U.S. Environmental Protection Agency, Clean Water Act, CFDA #66.458, for the purpose of funding the WWTP Improvements 2022 Project. The funds for this loan are both state and federal monies. On October 6, 2022, the note was increased to $4,200,000. The District plans to draw on the loan as needed during the project. As of the June 30, 2025, $4,200,000 in draws had been taken. Loan payments are required to begin no later than one year after substantial completion or initial operations of the project whichever comes first. The repayment schedule is 20 annual payments. The interest rate on the loan was amended 1.75%. It is secured by the District with the pledge and assignment of revenues from the District’s mill levy assessments, user fees and connection fees. None of the funds that have been drawn thus far are considered federal dollars for the year ended June 30, 2024. As a result of no federal dollars being used on the project a Uniform Guidance single audit has not been required. The rate for this note was changed in February of 2024 to .50%
The District borrowed $168,792 at 2.5% interest for the wastewater treatment plant expansion. The loan is payable in 20 annual installments of $10,828, including interest until paid. The loan is secured by all property tax levies to property within the District and Matures in 2026. The current outstanding balance of the note as of June 30, 2025 is $10,254 In February 2024 the interest rate for this note was decreased to 1.5% by the originating entity.
The District borrowed $738,820 at 2.5% interest for improvements to the drinking water system. The loan is payable in 20 annual installments of $47,393, including interest until paid. The loan is secured by all property tax levies to property within the District. This loan matures in 3030. The current outstanding balance of the note as of June 30, 2025 is $264,412. In February 2024 the interest rate for this note was also changed to 1.5%.
The District borrowed $2,742,366 at 2.5% interest for an expansion of the wastewater treatment plant. The loan is payable in 20 annual installments of $175,915, including interest until paid. The loan is secured by all property tax levies to property within the District and matures in 2029. The current outstanding balance of the note as of June 30, 2024 is $808,472 In February 2024 the interest rate for this note was also changed to 1.5%
Below is a summary of the required principal and interest payments for the notes payable described on the prior page for the next five years and thereafter. The table also includes the rate adjustment that was made in February of 2024.
NOTE 7 - 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
NOTE 7 - 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.
NOTE 8 - Defined Benefit Pension Plan
Under the modified cash basis presentation Government Accounting Standards Board (GASB) statement No. 68, accounting for pensions is not applied. Under a full accrual presentation the unfunded pension liability would be presented as well as any corresponding deferred inflows and outflows. The disclosure below is for informational purposes only.
Substantially all District employees are eligible to participate in the System. Participants who retire at age 60 with four years of credited service are entitled to a retirement benefit according to predetermined formulas and are allowed to select one of five optional methods for receiving benefits. Early retirement is allowed provided the employee has completed four years of service and attained the age of 50, but will result in a reduction of benefits based on the length of time remaining to normal retirement age. The System also provides death and disability benefits. Benefits are established by State Statutes. The System issues a publicly available financial report that includes financial statements and required supplementary information. This report may be obtained by writing to Wyoming Retirement System, 6101 Yellowstone Road, Suite 500, Cheyenne, Wyoming 82002 or by calling (307) 777-7691.
The System also provides disability retirement to any employee who becomes permanently incapacitated, mentally or physically, and who cannot continue in the performance of his duties. Benefits are established by State Statutes.
Contributions - The Plan statutorily requires 18.62% of the participant's salary to be contributed to the Plan. Contributions consist of 9.25% of the participant's salary as employee contributions and 9.37% as employer contributions. The amount of contributions designated as employee contributions represent the portion of total contributions that a participant retains ownership of and can elect to receive as a refund upon termination of employment. Employers can elect to cover all or a portion of the employee's contribution at their discretion. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
The District’s contributions to the Wyoming Retirement System for the year ended June 30, 2025 were $139,864
Governmental accounting standards require the System to report its net pension liability, the total pension liability less the amount of the System's fiduciary net position. The total pension liability is based on actuarial valuations required to be performed at least every two years. As of December 31, 2024, the System's fiscal year-end, the System has reported a net pension liability of $2,085,573. The District's proportionate share of the net pension liability, which is based upon actual historical District contributions to the System, is approximately $955,564. This amount, which has been presented for informational purposes, is not a current liability and is expected to decrease over time with normal contribution rates.
NOTE 9 - Commitments
The District had commitments for various construction projects as of June 30, 2025 that are summarized in the table below:
As of June 30, 2025, the District is holding retainage of $536,947 in relation to the project commitment noted in the table above.
NOTE 10 - Related Party
The District is located in Teton Village which has a number of other governmental Special Districts and regularly shares resources between the other Districts including staff, board members, office and shop space. The majority of these shared costs are done under board approved governed agreements.
The District was paid $53,911 for shared administrative costs including some wages on shared employees for the year ended June 30, 2025
NOTE 11 - Concentration
The district had a concentration in revenues as the property taxes received through Teton County account for 42% of the District’s revenues for the year ended June 30, 2025.
The District also had a concentration in expenditures related to a construction project which totaled approximately 63% of the District’s expenses before the costs were capitalized for the year ended June 30, 2025
NOTE 12 - Subsequent Events
Management has evaluated subsequent events through the date December 12, 2025 the financial statements were available to be issued.
Required Supplementary Information
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 Water and Sewer 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 December 12, 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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Mountain States CPAs and Consultants, LLC
Mountain States CPAs and Consultants, LLC
Lander, Wyoming
December 12, 2025
TETON VILLAGE WATER AND SEWER DISTRICT
TETON VILLAGE WATER AND SEWER DISTRICT SCHEDULE OF FINDINGS
YEAR ENDED JUNE 30, 2025
None
TETON VILLAGE WATER AND SEWER DISTRICT
JUNE 30, 2025
TETON VILLAGE WATER AND SEWER DISTRICT
SCHEDULE OF PRIOR YEAR FINDINGS YEAR ENDED JUNE 30, 2024
None
