Hyrum's auditor reports the same bookkeeping weakness for a third year

Hyrum City's independent auditor reported for a third straight year that the city did not reconcile key accounts to adequate supporting records at year-end, according to the city's fiscal 2025 audit. ^[1]

HBME, LLC classified finding 2025-001 as a material weakness in internal control. It titled it "Account Reconciliation and Financial Close Process – REPEAT FINDING FROM FY2023 AND FY2024." ^[1][2]

What the auditor found

The auditor wrote that general ledger accounts for cash, capital assets, accounts payable, accrued expenses and long-term debt were not reconciled to adequate supporting schedules as of June 30, 2025. ^[1]

It also noted journal entries posted to previously closed balances, "which then made account balances not agree to audited balances." ^[1]

The finding says the conditions "resulted in several significant, and in some instances material, audit adjustments," and that the city "continues to rely on the audit firm to verify balances are correct at year-end and make any necessary adjustments." ^[1]

HBME recommended that the city follow and update its written year-end closing procedures, and that it make no further adjustments to closed periods "without purpose and discussion." The city's response says it will ensure all general ledger accounts agree with the audited statements and are properly classified in its accounting software. ^[1]

The earlier findings

The fiscal 2024 audit, dated Dec. 10, 2024, reported finding 2024-001 under the same title as a repeat from fiscal 2023. It listed unreconciled accounts for cash, accounts receivable, capital assets, accrued expenses and pension-related deferred amounts. ^[3]

In that audit, HBME recommended the city consider hiring additional qualified accounting staff. The city responded that it would look at an additional full-time accounting professional or an outside CPA firm. ^[3]

The fiscal 2025 report says findings 2024-001 and 2023-001 were "not deemed to be satisfied." ^[1]

The city's response

In a May 1, 2025 corrective action letter, Mayor Stephanie Miller wrote that the city had advertised a full-time accounting position on April 30, 2025, and hoped to fill it by June 2025. She wrote that other employees who help with accounting would take relevant training. ^[5]

The fiscal 2025 audit says the city hired a certified public accountant with governmental accounting experience after June 30, 2025, in part to address the finding. The auditor wrote that there did not appear to have been enough time to fully put the changes in place, and that some changes unintentionally left opening balances out of agreement with the prior year's audited statements. ^[1]

What else the audit says

The auditor's opinion on the fiscal 2025 financial statements is unmodified. ^[4]

HBME's separate state compliance report found the city complied in all material respects with the state requirements tested, and listed no written state compliance findings for fiscal 2025 or 2024. ^[6]