Auditors flagged weaknesses in Salt Lake City's books for FY2023 through FY2025
Eide Bailly reported a material weakness in each of the last three audits. In fiscal 2024 the city produced no quarterly financial reports and filed an incorrect, late deposit report, auditors found.
Continuing story: Auditing Salt Lake City
Salt Lake City's independent auditor, Eide Bailly LLP, reported a material weakness in internal control over financial reporting in each of the city's audits for fiscal years 2023, 2024 and 2025. [1][2][3]
In all three years the auditor's opinion on the financial statements was unmodified. [1][2][3]
Fiscal 2023
For the year ended June 30, 2023, auditors found multiple audit adjustments that together were material, affecting property tax receivable, housing loans receivable and subscription assets and liabilities. [1]
Management's response said that "due to staff resources and time constraints, account reconciliations and audit review occur simultaneously." [1]
The same report found two instances in which approved meeting minutes were not posted to the Utah Public Notice Website within three days, and an incomplete quarterly report to the U.S. Treasury on pandemic recovery funds. [1]
The fiscal 2023 report also lists fiscal 2022 findings for material audit adjustments and for Arts Council Fund spending that exceeded its final budget. [1]
Fiscal 2024
For fiscal 2024, auditors reported that accounts including cash, investments, capital assets and revenues "were not reconciled in a timely manner." They attributed the delay to a change in the city's financial reporting system. [2]
A second material weakness found the original schedule of federal spending reported community development block grants on a cash basis and left out a federal water infrastructure loan. The fiscal 2022 audit had also found that loan missing from the schedule. [2][1]
On state law, auditors found that "No quarterly reports were produced by Salt Lake City Corp during the fiscal year ended June 30, 2024," as Utah Code 10-6-147 and 10-6-148 require. [2]
They also found that the city's deposit and investment report to the state Money Management Council left out accounts, contained duplicate amounts, was "materially incorrect" and was filed after the due date, on Aug. 1, 2024. The auditor issued a qualified opinion on the city's compliance with cash management requirements. [2]
Management agreed with the findings on the federal schedule, cash management and quarterly reports. [2]
Fiscal 2025
For fiscal 2025, auditors again found multiple audit adjustments, including a prior-period adjustment, that together were material. They said some reconciliation processes were "significantly delayed or modified" because of the fiscal 2024 system change. [3]
A significant deficiency found the city "could not provide sufficient supporting detail" for fleet transfers and disposals of construction in progress. [3]
The city restated its July 1, 2024 grants fund balance up by $6.77 million because grant revenue had not been recognized in fiscal 2024. The financial report says that step was missed "due to staff constraints in connection with the implementation of a new financial operating system in FY24." [4]
The fiscal 2025 state compliance report found no instances of noncompliance, and the report on federal programs listed no findings. [3]
Sources
- Federal Audit Clearinghouse · Salt Lake City FY2023 single audit and state compliance report
- Federal Audit Clearinghouse · Salt Lake City FY2024 single audit and state compliance report
- Federal Audit Clearinghouse · Salt Lake City FY2025 single audit and state compliance report
- Salt Lake City · FY2025 annual comprehensive financial report
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.