Finding 480697 (2022-001)

Criteria: Utah Code Annotated (UCA) 10-6-107 states: “The accounting records of counties shall be established and maintained, and financial statements prepared from those records in conformance with generally accepted accounting principles in the United States of America (GAAP)” Condition: During our audit, material adjustments were required to bring the County’s financial statements into conformity with generally accepted accounting principles (GAAP) as it relates to governmental entities. Cause: The County did not appear to follow any documented financial close process to ensure that the accounts of the County would be properly reconciled for the fiscal year-end. Effect: Material audit adjustments were required to be made to correct the financial statements. These adjustments impacted the following significant areas: • Accounts receivable and related revenues • Pension related assets and liabilities and deferred inflows and outflows • Capital assets • Accounts payable • Accrued expenses • Equity investment in joint venture • Compensated absences Recommendation: We recommend that the County put in place documented financial close procedures to ensure that the County’s financial records are reconciled and adjusted to be in conformity with GAAP. Views of responsible officials and planned corrective actions: We concur with the finding and recommendations, and we will establish and document financial close procedures to ensure the County’s financial records are reconciled and adjusted to be in conformity with GAAP. Other findings related to compliance with Utah state laws and regulations are included with the separately issued 2022 Annual Financial Report.