After an audit finding on fraud-risk paperwork, North Logan formed an audit committee
North Logan's one fiscal 2025 audit finding was that the city could not document its fraud risk assessment. The council formally created an audit committee in October 2025, and the city's 2026 self-assessment scores 375 of 395 points.
Continuing story: Auditing North Logan
North Logan's audit committee met for the first time in a formal capacity on Feb. 12, 2026, to review the city's fiscal 2025 audit, according to its minutes. [1]
The finding
The minutes say the audit's one finding concerned the fraud risk assessment, quoting it: "The City … was unable to provide sufficient documentation to support its risk assessment." [1]
The minutes list two issues raised by the audit: the lack of a formal audit committee, which they say had been resolved, and a requirement that at least one member of the management team complete 40 hours of formal financial training each year, documented as continuing education credits, starting by June 30, 2026. As of the meeting, 22 hours were documented. [1]
Committee members present were council member Kenny Reese, Scott Bennett, whom the city's risk assessment lists as its chief financial officer, and a third member. [1][2] The minutes describe the committee as including a council representative, the city treasurer and the finance officer. The committee planned to meet again in July 2026. [1]
Creating the committee
The council voted Oct. 8, 2025 on a resolution establishing an audit committee and adopting guidelines for it, formalizing an existing committee to meet state requirements, according to the council's minutes. Mark Hancey moved and Kenny Reese seconded. The roll call was 3–0, with Hancey, Reese and Emily Schmidt voting yes; council members Buzzy Mullahkhel and Joni Kartchner were excused. [3]
The audit committee's minutes identify the measure as Resolution 25-23. [1]
The 2026 self-assessment
The city's fraud risk assessment for the fiscal year ending June 2026 scores 375 of 395 possible points. It answers yes to having a formal audit committee, to governing body members completing required training within four years, and to at least one manager completing 40 or more hours of financial training a year. [2]
The only item without full points is having a licensed or certified financial expert on the management team, for which the city claimed none of 20 points. [2]
The finding concerns documentation of an assessment. It is not a finding that fraud occurred. The 2026 assessment is the city's own self-assessment, not an independent review. The Ledger could not open the state-compliance pages of the audit itself, so the finding is quoted here as the audit committee's minutes record it.
Sources
- North Logan City Audit Committee · Feb. 12, 2026 minutes
- North Logan City · Fraud risk assessment, fiscal year ending June 2026
- North Logan City Council · Oct. 8, 2025 minutes
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.