South Ogden's FY2025 audit: clean opinion, a repeat weakness in closing the books and a lowered fraud-risk score

K&C, CPAs, of Woods Cross gave South Ogden's fiscal 2025 financial statements a clean opinion, saying they "present fairly, in all material respects" the city's financial position. Its supplemental report, also dated March 3, 2026, lists four findings on internal controls and compliance. ^[6][1]

Closing the books

Finding 2025-001, classified as a material weakness, says several areas of the financial statements needed material audit adjustments to meet generally accepted accounting principles. The areas were taxes receivable, capital assets, accounts payable, interfund loans, financed purchases, pension activity and other postemployment benefits. The report gives no dollar amounts. ^[1]

The auditor said account reconciliations did not consider all relevant factors. Management said it would complete reconciliations earlier, review leases and financed purchases regularly and track capital assets during the year. It said implementing a new accounting standard, GASB 101, delayed some pension and retiree-benefit review procedures. ^[1]

The fiscal 2024 report, dated Feb. 18, 2025, had also classified financial close procedures as a material weakness, finding 2024-001. It listed adjustments in six of the same areas. Management then cited staff turnover at the start of the fiscal year and a new staff member learning the software. ^[2]

The fraud risk score

Finding 2025-003, a significant deficiency, concerns the fraud risk assessment that Utah local governments complete each year for the State Auditor's Office. The auditor said it could not confirm that three practices the city claimed points for were in place: annual written ethics commitments, entity-specific training for all governing body members and a formal internal audit function. ^[1]

The auditor attributed the problem to an apparent misunderstanding of the requirements and missing documentation. The score dropped from 375 points, "very low" risk, to 315 points, "moderate" risk. ^[1]

Management responded that annual ethics statements were not completed that year and will be, that council members were told to provide training certificates and that the city will expand its internal audit function. ^[1]

Court trust account

Finding 2025-004, also a significant deficiency, says justice court activity was not reconciled to the general ledger each month as the State Compliance Audit Guide requires, so those charged with governance lacked accurate information on the trust account liability. The auditor attributed it to management oversight. ^[1]

Management said it would reconcile monthly instead of quarterly and use the state court system's CORIS reports in addition to its Caselle reports. ^[1]

The budget finding

The fourth finding, 2025-002, says the South Ogden Days fund spent $33,167 more than its budget. A separate story in this series covers it. ^[1]

The report's compliance section says the auditor "did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses." The same report classifies 2025-002 as a material weakness. The report does not explain the difference. ^[1]

Since the audit

On March 3, 2026, Finance Director Peter Anjewierden introduced auditor Marcus Arbuckle, who reviewed the audit and the supplemental findings with the council. The minutes do not summarize what was said. ^[3]

At an Aug. 18, 2026 work session, Anjewierden gave an overview of the fraud risk assessment required by the State Auditor's Office. His staff report lists it as a discussion item with no financial impact. The minutes record no score. ^[4][5]