Sundance and Crook County Receive Clean Audits, Cite Ongoing Separation of Duties Issue

Auditor recommends training and oversight for volunteer board members to address internal control weaknesses.

Published on Feb. 11, 2026

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Both the City of Sundance and Crook County, Wyoming have received clean audit reports, but the auditor identified an ongoing issue with separation of duties in their small accounting departments. The auditor acknowledged it is impractical for the city and county to fully separate duties, but recommended implementing compensating controls and providing more training and oversight for volunteer board members to prevent fraud and abuse.

Why it matters

Proper separation of duties is a key internal control to prevent errors, waste, and potential fraud in government accounting. While small organizations may struggle to fully implement this control, the auditor's recommendations aim to strengthen oversight and accountability to protect taxpayer funds.

The details

The auditor, Paul Stille of Leo Riley & Associates, noted that both the City of Sundance and Crook County have the same recurring 'deficiency' related to separation of duties. Proper procedures require different employees to handle different stages of a transaction, such as receiving payments, recording them, and reconciling bank statements. However, the small accounting departments make it 'impractical' to fully separate all duties. To address this, the auditor recommended increased training and involvement for the volunteer board members who provide oversight, as their 'limited understanding' and 'lack of experience' has resulted in an 'imperfect solution' so far.

  • The annual audits for the City of Sundance and Crook County were completed in February 2026.

The players

Paul Stille

An auditor with Leo Riley & Associates who conducted the annual audits for the City of Sundance and Crook County.

City of Sundance

A local government entity in Sundance, Wyoming that received a clean audit report with a noted deficiency related to separation of duties.

Crook County

A county government in Wyoming that received a clean audit report with a noted deficiency related to separation of duties, particularly in its component units like the library and fair.

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What they’re saying

“Duties have been separated 'to the extent possible' and compensating controls have been implemented to monitor accounting activities.”

— Paul Stille, Auditor (Sundance Times)

“Board members' 'Limited understanding of their roles in the internal control system, their lack of experience, their lack of training and the volunteer nature of their service has resulted in an imperfect solution.'”

— Paul Stille, Auditor (Sundance Times)

What’s next

The auditor recommended that the city and county provide more training for board members on their roles in the internal control system, as well as solicit board members with accounting or business experience to strengthen oversight.

The takeaway

While the city and county received clean audits, the recurring separation of duties issue highlights the challenges small government entities face in maintaining robust internal controls. Providing training and increasing board member expertise can help strengthen oversight and accountability to protect taxpayer funds.