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Sunset City audit finds no material misstatements; flags payroll control and reporting deadlines
Summary
Child Richards CPAs & Advisors reported no material misstatements in Sunset’s FY2025 audit but identified a segregation-of-duties weakness in payroll and noted missed deadlines for a fraud risk assessment and monthly reporting requirements.
At the Feb. 17 Sunset City Council meeting, auditor Mariah Reyes of Child Richards CPAs & Advisors presented the City’s FY2025 financial audit, reporting that the financial statements "fairly presented the City’s financial condition." Reyes said the audit contained no material misstatements but identified one internal control finding: payroll preparation and approval had been performed by the same individual, which increases risk and should be corrected.
Reyes summarized year-end figures: governmental net position increased by about $1.4 million and the City recorded an overall net increase of roughly $1.6 million. Revenues rose by approximately $1.6 million even though tax revenues fell by about $250,000; expenses increased by roughly $326,000. The City also added capital assets, with capital-asset improvements totaling about $800,000 and capital project fund balances increasing by approximately $1.9 million. Cash increased by about $60,000 from the prior year.
On state compliance, Reyes reminded the Council that as a fifth-class city Sunset is required to prepare monthly financial reports suitable for decision-making and to complete a fraud risk assessment within six months of year-end. The auditor reported the fraud risk assessment deadline had been missed and that two departments had exceeded budgeted amounts, recommending closer monitoring and timely budget amendments when necessary.
Recorder Nicole Supp told the Council the payroll process had already been revised after the City transitioned to Zions Bank: payroll is now prepared by one employee, approved by the recorder’s office, and then submitted for final processing. Supp said the fraud risk assessment had since been submitted and a calendar reminder is in place to ensure future timely completion. Mayor Scott Wiggill thanked Auditor Reyes and Recorder Supp for their coordination.
The audit and the follow-up steps will go into the City’s records; the Council did not take formal action beyond receiving the report.
