Nye County accepts independent audit despite internal control weaknesses

Nye County commissioners voted unanimously April 30 to accept the independent audit for the fiscal year ending June 30, 2023, after Daniel MacArthur Limited presented its report and recommended adjustments.

The audit opinion concluded that, "the financial statements referred to above present fairly in all material respects the respective financial position" of county funds after the adjusting entries proposed by the auditor were recorded, Daniel McArthur told the Board during the meeting. He said the firm obtained reasonable assurance and therefore could issue a clean opinion.

Why it matters: the audit also flagged governance and compliance items that county managers must fix. McArthur told commissioners the audit identified three funds with deficit fund balances — the Grama special revenue fund and the Pahrump and Tonopah museum funds — and several expenditures in excess of appropriations in small funds. He warned the Department of Taxation will require corrective action plans for the budget violations and the unresolved capital asset inventory.

The auditor drew particular attention to internal control problems in the comptroller's office, saying the county has a "material weakness in internal control" because monthly closing procedures and reconciliations were not performed timely. McArthur attributed the condition largely to staffing turnover and recommended a staffing review, regular training, and checklist-driven monthly reconciliations to reduce the risk that errors go undetected.

Comptroller Helen Bay acknowledged the problems and told commissioners the finance team has been working weekly with the auditor and that the county plans to contract for additional help and continue audit status meetings through June to complete outstanding work. Bay said one near-term priority is rebuilding the county's reserves after a revenue shortfall, noting, "the objective of FY25 budgeting would be to get that reserve back up."

Audit specifics: McArthur also explained that some audit differences arose from timing and reporting conventions — for example, long-dated investments carried unrealized losses under governmental accounting standards, and certain trust property proceeds are subject to timing rules that temporarily create negative cash positions. He gave the board a consolidated snapshot of county finances, noting approximately $92.9 million in net position and modest year-over-year change.

What comes next: commissioners asked staff to bring monthly financial statements and to proceed with corrective action plans where required. The board voted 5–0 to approve the audit and directed staff to implement the auditor's recommendations and to report back on progress and any required statutory filings.