Fruit Heights' fiscal 2025 audit points to a state-compliance item described in a separate letter
The auditor's state-compliance report says instances of noncompliance are described as item 25-1 in a Dec. 30, 2025 letter to management. That letter is not in the filed audit report.
Continuing story: Auditing Fruit Heights
Fruit Heights' auditor reported a state-compliance item for fiscal 2025 but described it in a separate letter to the city's management rather than in the published audit report. [1]
In its report on compliance with the State Compliance Audit Guide, Gilbert & Stewart, CPA PC, says its procedures "disclosed instances of noncompliance, which are required to be reported" under the guide and "are described in our letter to management dated December 30, 2025 as item 25-1." [1]
The report says: "Our opinion on compliance is not modified with respect to these matters." It also says the city responded to the item, and that the firm expresses no opinion on that response. [1]
What the filed report covers
The firm tested 11 areas: budgetary compliance, fund balance, restricted taxes and related revenues, the fraud risk assessment, government fees, cash management, enterprise fund transfers, tax levy revenue recognition, impact fees, Utah Retirement Systems and crime insurance for public treasurers. The report does not say which area item 25-1 concerns. [1]
The 62-page report filed with the state auditor contains the financial statements and three auditor's reports. It does not contain the letter to management. [1]
The separate report on internal control over financial reporting says the auditors did not identify deficiencies they consider material weaknesses, and that their tests disclosed no instances of noncompliance required to be reported under Government Auditing Standards. [1]
Two details in the report text
The independent auditor's report refers to "our report dated December 3, 2025" on internal control and compliance. The internal-control report itself is dated Dec. 30, 2025. [1]
The report's opening paragraph lists the governmental activities, business-type activities, each major fund and the remaining fund information. Its opinion paragraph refers to "the respective financial position of the business-type activities." [1]
The council presentation
The Jan. 20, 2026 council agenda listed a presentation of the Gilbert & Stewart audit report. The minutes of that meeting say the firm "rescheduled their report to the February 3, 2026, council meeting, due to illness." [2]
The Feb. 3, 2026 agenda lists the presentation and no action item on the audit. [3]
The auditor did not modify its compliance opinion. The filed report does not state the subject of item 25-1.
Sources
- Fruit Heights City · FY2025 basic financial statements and auditor's reports (copy filed with the Utah State Auditor), compliance report
- Fruit Heights City Council · Jan. 20, 2026 minutes
- Fruit Heights City Council · Feb. 3, 2026 agenda
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.