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Green River audit gives unmodified opinion but flags fund-balance and training issues
Summary
Larson & Company issued an unmodified FY2025 audit for Green River and reported the city exceeded the state—und-balance limit; the audit also flagged a missed annual open-meetings training. Auditors recommended moving excess general-fund balance into capital projects and completing annual training under Utah state rules.
John Hattery, a partner at Larson & Company, told the Green River City Council the firm issued an unmodified (unqualified) opinion on the city—s FY2025 financial statements, meaning the audited statements fairly present the city—s financial position. "The opinion is an unmodified opinion or an unqualified opinion," Hattery said during the presentation.
The auditors reported two items the council must address. First, the city—s unassigned and committed fund balance totaled approximately $1,400,000, which the audit said exceeds the Utah statutory maximum for the general fund (the audit calculated a maximum of about $869,000). Hattery recommended that the council budget and transfer excess reserves into a capital projects fund to keep operating reserves within the state-prescribed limits while preserving funds for future projects.
Second, Larson & Company identified a state compliance finding under the state's annual Open and Public Meetings Act training requirement (cited in the presentation as "Utah State code 52 4 0 1 0 4"). The auditors said some council members had not completed the required annual training; staff later confirmed they are scheduling the training in the coming weeks.
Hattery also reviewed audit risks that applied to Green River—s engagement: improper revenue recognition, cash disbursements, potential management bias in disclosures, and journal-entry controls. He said the audit found no significant misstatements in the testing and thanked city staff for their cooperation during a first-year engagement with a new audit firm.
Next steps noted during the meeting included staff preparing any budget transfers needed to move excess general-fund balance into capital-project accounts and completing the Open and Public Meetings Act training on the schedule discussed with auditors. The council asked staff to return with any required budget amendments and timing for transfers.
