Idaho Falls redevelopment agency accepts unmodified audit showing $9.2M deficit, new developer agreement noted

The Idaho Falls Redevelopment Agency voted to accept a clean (unmodified) 2025 audit at its April meeting, after a staff presentation and roll-call approval.

Auditor Andrew of Red and Company told the board, "the financial statements ... present fairly in all material respects," and walked the agency through key figures: a year-end deficit of about $9,200,000 (a $1.9 million improvement from the prior year) and total cash and investments of $3,100,000 (an increase of $405,000).

The audit also documented the agency’s long-term obligations. "At 09/30/2025, the agency had a total long-term debt of 9,000,000, and OPA obligations of 3,300,000," Andrew said, adding that OPA obligations had decreased about $1.1 million from the prior year.

The auditor flagged a custodial credit exposure: $75,000 of agency deposits were not covered by federal deposit insurance. Andrew described this as a common situation with larger pooled balances and told the board the practice is to monitor uninsured amounts and, if desired, redistribute funds among institutions to increase FDIC coverage.

Andrew also highlighted a grant participation agreement with SRL Development for roughly eight acres south and west of Milligan Road adjacent to the Snake River (referred to in the packet as the "Boneyard"). Under the agreement, the agency may reimburse that private developer for eligible public site improvement costs "up to the maximum amount of approximately 2,500,000," with reimbursements payable only after improvements are completed and documentation submitted.

Board members had brief follow-up questions about the footnotes and the uninsured deposits; Andrew characterized the audit exceptions as minor and typical of routine adjustments. After discussion, a commissioner moved to accept the audit and authorize the required filings with the state controller and other entities; the motion passed on a roll-call vote.

What happens next: staff will file the audit with required state entities, and the board will continue to monitor cash-management practices and the progress of projects described in the audit, including the SRL Development agreement.