Statutory pressure — Audit delays put hospital district at risk
Editor's note: This story has been updated to correct the date of the discussion. This story references a discussion at the Jan. 7, 2026 meeting, not the meeting held this week on Jan. 20.
Weston County commissioners said on Jan. 7 that they are working to avoid dissolving the Weston County Health Services hospital district, even as they face statutory pressure tied to long-delayed audit filings. As a result of the noncompliance, state and local funds are currently being withheld from the hospital district and other delinquent boards in the county, and they also face the potential for dissolution under state law.
Cathy Harshbarger, CEO of Weston County Health Services, told the board the audit delays stem largely from prior internal financial management problems, including issues attributed to a former chief financial officer and shortcomings by an outside accounting firm that failed to flag problems earlier.
Commissioners said they do not want to dissolve the hospital district board and emphasized that such an action would be disruptive and not in the county’s best interest.
“In the interest of the county, I don’t see dissolving any district being beneficial for anybody,” Chairman Nathan Todd said, although he acknowledged that the county would have to move forward at some point as required by law.
However, they said their actions are driven by directives from the Wyoming Department of Audit and state law, not by a desire to punish the hospital.
“You understand that this is what comes down to us. We’re not making a decision for you. We’re making a decision that is mandated by the Department of Audit… we don’t get to make the rules,” Commissioner Marty Ertman said.
New CFO Paul Maiellano said he has helped clean up roughly 18 months of financial records in about 50 days and expects the hospital to submit materials to a third-party auditor within days. He said the audit should be completed and submitted to the state by early March.
The board expressed a willingness to work with the hospital district to avoid dissolution and the associated mess that would follow but noted that it is bound by statutory requirements.
In the hopes of avoiding dissolution, the commission discussed delaying the public hearing until a time that the hospital can complete the audit, with the option to halt dissolution proceedings if compliance is confirmed before then.
Weston County Attorney Michael Stulken told the News Letter Journal in an email that there is a timeline for dissolution in statute but that the “process becomes somewhat complicated.”
The commissioners are scheduled to discuss the dissolution of the districts further at their Jan. 20 meeting.
How we got here
As previously reported, the Weston County commissioners voted Nov. 18 to send formal notices to five local entities that remained out of compliance with state reporting requirements. The districts identified by the Wyoming Department of Audit are:
• Cambria Improvement and Service District
• Combined Communications Dispatch Joint Powers Board
• Weston Water District
• Weston County Health Services
• Weston County Solid Waste District
Under Wyoming law, districts that fail to file required reports by statutory deadlines can face withheld funds and eventual dissolution if compliance is not achieved.
Statutory background and deadlines
Wyoming Statute 9-1-507 requires counties, municipalities and certain districts and entities to file annual revenue and expenditure reports with the Department of Audit by Sept. 30 for the prior fiscal year. By Oct. 5, the Department of Audit must notify county commissioners, clerks and treasurers of any entities that failed to comply.
If a district or entity remains noncompliant by Nov. 30, the department must formally notify the county commission, county clerk and county treasurer. At that point, commissioners are required to publish a public notice stating that the district is in danger of dissolution, with the cost of publication charged back to the district, and the county treasurer must withhold any further disbursements unless good cause for noncompliance is shown.
If the required report is still not filed by Dec. 30, state statute directs county commissioners to seek dissolution of the district in accordance with Wyoming law. Funds remain withheld until the Department of Audit certifies that the district or entity has returned to compliance.