Nephi's fiscal 2025 audit flags justice court reconciliations and corrects a 2024 error

Nephi's auditors reported one instance of noncompliance with Utah's state compliance requirements in fiscal 2025, involving the city's justice court. The finding did not change their unmodified opinion on compliance. ^[2][1]

Larson & Company reported no material weaknesses or significant deficiencies in internal control over financial reporting and no findings on federal awards. ^[3]

The finding

Under the state compliance guide for justice courts, the court's trust account must be reconciled to the city's general ledger every month, the auditors wrote in finding 2025-001. ^[1]

During testing, they found that the August 2024 trust account summary did not appear to be reconciled. Management told them monthly reconciliations did not occur until October 2024 and thereafter. ^[1]

The auditors attributed the lapse to oversight by management and staff and recommended that the city work with the court to reconcile the accounts monthly. The city's response says it will ensure the trust accounts are reconciled monthly. ^[1]

The auditors performed limited procedures on that response and expressed no opinion on it. ^[2]

At the council's Dec. 2, 2025 meeting, the auditor's representative described the issue as resolved later in the year, according to the minutes. The audit itself does not test that correction. ^[6][1]

A correction to 2024 figures

The audit restated the city's beginning net position by $316,870. Management's discussion says the adjustment corrects a 2024 error in which accounts receivable had not been reported in that period. ^[4]

Of the total, $37,265 was in governmental activities and $279,605 in business-type activities. In the general fund, the restatement reduced the beginning fund balance from $1,245,251 to $1,207,986. ^[5][8]

The fiscal 2027 final budget appropriates $152,465 for the justice court. ^[7]