Castle Dale — Independent auditors who presented to the City Council Thursday reported a material weakness in internal control tied to year‑end invoice cutoff procedures and identified compliance items flagged by the Utah State Auditor’s office.

The auditors said their testing found invoices that should have been accrued in June were instead recorded after year‑end, which understates expenditures and liabilities at fiscal close. The auditors recommended establishing year‑end procedures to capture held payables; city staff said they would ensure invoices are included in the proper fiscal period going forward.

During the presentation the auditors and council discussed an apparent $450,000 variance discovered in the budget. The auditors said the sum related to a passthrough for the Maverick Road project and that a third‑party (UDOT) entry had been made shortly before the audit. Council members said they were not aware of the change until shortly before the audit and that staff will account for the passthrough correctly in future reports.

The auditors also noted other compliance tests and findings in the state compliance section, including untimely posting of meeting minutes and other items listed in the state report. Council members asked for clarification about required steps when transferring funds between city funds; auditors advised amending the budget publicly before making transfers not previously budgeted.

Auditors said, aside from the internal control issues noted for corrective action, they did not find other irregularities in the city’s internal controls. The council acknowledged the findings and said staff would implement the auditors’ recommendations.