Auditors give Tooele "clean" opinion; fund balance rose by about $20 million, auditors note one compliance timing issue

Martha Hayes of Larson & Company presented the independent audit of Tooele City's financial statements for the year ended June 30, 2025, telling the City Council the auditors' opinion: "the financial statements are presented fairly in accordance with generally accepted accounting principles." Hayes said auditors conducted the work under generally accepted auditing standards and government auditing standards and found no material weaknesses or significant deficiencies in internal control.

Hayes told the council the city's fund balance increased by about $20,000,000 during the fiscal year. She said the audit identified one compliance finding: the general fund balance exceeded the state guideline that the general fund not exceed 35% of total revenue. "It did exceed that, and it was mainly just a timing issue," Hayes said, explaining the condition related to the timing of transfers into the capital projects fund and noting staff expects to address it in next year's budget.

The auditor also summarized risk areas common to local governments, including revenue recognition and cash disbursements, and said the audit found no instances of noncompliance that required reporting other than the fund-balance timing issue. Hayes said the audit engagement letter dated 07/01/2025 guided the audit and that management provided representations dated 11/21/2025.

The council did not take separate action on the audit during the meeting; the report was presented for review and will inform upcoming budget work and transfers to capital projects.