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City audit: unmodified opinion, auditor flags recording and deposit procedures
Summary
External auditor Corey Urie told the council the FY24–25 financial statements received an unmodified (clean) opinion, while auditors reported two nonmaterial findings — incomplete interfund reimbursement recording and an instance of late deposit under Utah rules — and recommended operational fixes.
Corey Urie of Child Richards CPAs presented the city's FY24–25 audit and said auditors issued an unmodified opinion on the financial statements, describing the result as a clean report.
"In our opinion, the financial statements present fairly in all material respects the respective financial position," Urie said. He highlighted that the audit required adoption of a GASB compensated-absence standard but did not require material changes to the city's accounting because the city uses a lump PTO bank.
Urine (sic) identified two audit findings the auditors characterized as not material but worth attention. The first, labeled 2025-4, involved interfund services reimbursements: state rules require services provided by enterprise funds to the general fund be quantified and recorded consistently. "We couldn't see that there was any kind of recording going on for that," Urie said, recommending the city agree on a recording method and adopt it going forward.
The second finding, 2025-5, addressed compliance with the Utah money-management requirement to deposit receipts within three business days. Auditors found an instance where the city did not meet that three-day window and recommended designating backup depositors so deposits occur while staff are out of town or sick.
Urie also reviewed key balances: total assets exceeded liabilities by about $7.9 million; unrestricted net position stood at roughly $1.9 million; cash across accounts fell about $438,000 year over year; combined governmental fund balances were about $1.5 million; and the general fund expenditures exceeded budget by roughly $158,000. He described the increases and decreases in receivables, capital assets and liabilities across enterprise and governmental funds.
On internal controls and state compliance testing, Urie said auditors found no material weaknesses in internal controls but did report instances of noncompliance in items the state tests on a rotation, including minutes uploads and the required progress assessment. The auditors recommended operational changes — for example, secondary uploaders for meeting minutes — and received management responses committing to fixes.
Council members asked clarifying questions about the audit process and findings. Mayor (S1) and others thanked the auditor for the work and noted that, while there are areas to tighten procedures, the unmodified opinion indicated no systemic material problems.
The council accepted the report and thanked the auditors for presenting.
