Auditor gives Spanish Fork clean opinion; flags treasurer's surety bond shortfall

Larson & Company presented Spanish Fork's fiscal year 2025 audited financial statements at the Dec. 9 council meeting and issued a clean (unmodified) opinion on the city's financial statements and state compliance. Auditor John Hatterley praised finance staff for prompt responses and said auditors found no material weaknesses or significant deficiencies in internal controls.

The auditor reported one compliance finding under the Utah Money Management Act: the public treasurer's surety bond did not match the level suggested by the city's budgeted revenue. Based on the most recent budget numbers, auditors recommended increasing the bond to at least $5 million to ensure compliance for fiscal year 2026. Auditor discussion noted the calculation depends on budgeted revenue, which can fluctuate with major capital projects but recommended the bond be raised to address a recent spike in reported budgeted revenues.

Council thanked the auditors and staff. Finance staff indicated the bond amount can be adjusted; council discussed timing and noted large capital projects (rec center, sewer treatment work) will change budgeted revenue in future years and the bond can be revised accordingly.

No formal action was taken at the meeting beyond acceptance of the audit report; staff will follow up on the bond recommendation.