Auditors give city a clean opinion but flag internal-control and compliance weaknesses

Auditors told the South Ogden City Council on March 3 that they had issued a clean independent auditors' opinion on the city's basic financial statements for the year ending June 30, 2025, but recommended several internal-control and state-compliance improvements.

"We have issued a clean opinion," auditor Marcus Darmbrueckle said, adding that the audit also includes reports on internal controls and state compliance. The auditors identified one internal-controls recommendation related to the financial-close process and urged the city to maintain backup documentation for each balance-sheet account, especially fixed assets, and to implement a double-check review procedure.

The audit team also reported state-compliance matters. Marcus said the South Ogden Days Fund was over budget ("expenditures were around 83,000" where the packet listed a different budget figure), and recommended a year-end budget amendment. He described shortcomings in the documentation supporting the city's fraud risk assessment and said the court trust account needs monthly reconciliation between the city's general ledger (Cassell) and the core court system instead of an annual reconciliation.

Council members asked whether the city should establish an internal-audit function. Marcus outlined options, saying some cities create an audit committee or hire an external CPA firm to perform periodic testing; he also noted many cities operate without a formal internal-audit department. Peter (city staff) said he would address the recommended corrections going forward.

The presentation covered the audit period ending 06/30/2025 and included supplemental schedules and the MD&A, and auditors thanked city staff for their cooperation during the fieldwork.