Provo's FY2025 audit: clean opinion, no state compliance findings

Provo's outside auditor gave the city a clean, or unmodified, opinion on its financial statements for the fiscal year that ended June 30, 2025, according to minutes of the council's Dec. 16, 2025 work meeting. ^[1]

Audit partner Jeff Miles told the council his firm did not identify any deficiencies in internal controls and did not identify any noncompliance in state compliance testing. ^[1]

What else the auditor said

Miles said the federal single audit for fiscal 2025 was still under way and had to cover five federal programs instead of the usual one or two because of large grants that year. He said he did not expect findings. ^[1]

He said audit procedures checked that no fund had a deficit fund balance and that there were no budget overages during the year. He noted the golf course had a deficit unrestricted fund balance and said the city budgets each year to help remediate it over time. ^[1]

The city's fiscal 2023 annual report says the general fund lent the golf course money in fiscal 2019 for course improvements, over seven years at 3%, to be repaid from tax increment from a housing development next to the course. That year's budget changes also included $245,000 to correct the golf course's negative fund balance. ^[2]

Earlier years

HBME, LLC issued an unmodified opinion on the city's fiscal 2023 statements. ^[2]

Federal Audit Clearinghouse filings compiled by AuditRadar list nine Provo single audits from fiscal 2016 through fiscal 2025. Fiscal 2020 lists one finding, and the other eight list none. ^[3]

Federal spending covered by the single audit rose from $15.1 million in fiscal 2020 to $65.2 million in fiscal 2025. The largest fiscal 2025 program was a $34.5 million Building Resilient Infrastructure and Communities grant. ^[3]

The fiscal 2023 annual report says the city was involved in six liability cases as of June 30, 2023, and its legal department estimated the city's liability at up to $500,000 if damages were awarded. ^[2]