Sunset's fiscal 2025 audit lists three state compliance findings
The auditor reported that Sunset did not prepare monthly financial reports, had not presented a fraud risk assessment, and that two general fund departments exceeded their budgets in fiscal 2025. Its compliance opinion was not modified.
Continuing story: Auditing Sunset
Sunset's independent auditor reported three findings of noncompliance with state requirements in the city's fiscal 2025 audit, while saying the city complied with those requirements in all material respects. [1][3]
Child Richards CPAs & Advisors dated its reports Feb. 2, 2026. For each finding it wrote, "There is no effect on the financial statements." [1]
Monthly financial reports
Finding 2025-01 says fifth-class cities must prepare monthly financial reports detailed enough for the governing body to make adequate decisions, covering all active funds. "Financial reports were not prepared monthly," the auditor wrote. [1]
The stated cause: "Management and the council were not aware of the city classifications and the requirements that came with being a fifth-class city." Management responded that it "will prepare financial reports monthly and send those to the council for their review." [1]
Fraud risk assessment
Finding 2025-02 says, "As of December 31, 2025, the Fraud Risk Assessment had not been completed or presented in a public meeting." The auditor recommended that it be completed, presented and approved in a council meeting. Management said it would do so. [1]
Budget overruns
Finding 2025-03 says actual spending for general government and community development was $9,155 and $9,199 over budget, respectively. The criteria the auditor cites say total expenditures by fund or department should not exceed the amounts appropriated in the final adopted budget. [1]
The audit's management discussion says overall general fund spending, excluding transfers, came in $313,964 under budget, and revenues came in $84,541 over budget. [2]
The opinion
The compliance report lists the areas tested, including budgetary compliance, fund balance, justice court, fraud risk assessment, cash management, impact fees and Utah Retirement Systems. It says, "In our opinion, Sunset City complied, in all material respects, with the state compliance requirements referred to above." [3]
The same report refers to "two instances of noncompliance" and then lists three items, 2025-01, 2025-02 and 2025-03. [3]
The July 7, 2026 council minutes record no monthly financial report to the council and no fraud risk assessment presentation. [4]
These are findings for fiscal 2025. They do not describe the city's current practices. The auditor wrote that none of them affected the financial statements.
Sources
- Sunset City · Financial report and auditor's reports, year ended June 30, 2025 (State Auditor filing), schedule of findings
- Sunset City · Financial report and auditor's reports, year ended June 30, 2025 (State Auditor filing), management's discussion, budgetary highlights
- Sunset City · Financial report and auditor's reports, year ended June 30, 2025 (State Auditor filing), state compliance report
- Sunset City Council · July 7, 2026 minutes (approved July 21, 2026)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.