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Financial Audit of the Salt Lake County Council

Scope

The original audit scope was from January 1, 2021, to December 31, 2022. Due to a fraud tip submitted through the Auditor’s Fraud Tip hotline, the scope was expanded through August 31, 2023. The tip presented allegations of fraud related to travel and spending practices within the County Council office. Travel-related transactions were excluded for this limited-scope financial audit due to the investigation being performed under the Countywide Travel Expense Audit. Investigation of expenditures was performed within this audit.

Objectives

The audit objectives were to examine Salt Lake County Council’s financials and provide reasonable assurance that:
  • Financial transactions and business processes comply with applicable standards, ordinances, policies, statutes, and laws;
  • County assets are safeguarded against the risk of fraud, waste, or abuse;
  • and to evaluate internal controls at the County Council to ensure that financial transactions are recorded accurately and completely, and free from significant errors.

Auditor's Letter

A microphone on a desk.

April 2024

I am pleased to present the results of our limited-scope financial audit of Salt Lake County Council for the period from January 1, 2021, to August 31, 2023. This audit was aimed at evaluating the adequacy and effectiveness of internal controls and compliance with fiscal ordinances, policies, and procedures within the Council.


Our audit revealed areas requiring attention to enhance operational efficiency and compliance with established standards. It highlighted a failure to comply with reporting a stolen asset, insufficient documentation of controlled assets, lack of capital asset tags and a lack of required documentation for meal purchases. The report also pointed out the need for the agency to retain source documentation for purchasing card purchases, per reconciliation procedures, and ensure management has access to documentation retained by employees who have since terminated. Additionally, the audit found an instance where sales tax was paid by the agency when reimbursing an employee who purchased a tablet and accessories. These issues indicate a need for enhanced internal controls and stricter adherence to existing procedures to mitigate potential risks to operational effectiveness and regulatory compliance.


We strongly recommend the County Council promptly review and implement the detailed recommendations in the attached audit report. Addressing these issues is crucial to safeguarding the operational and financial integrity of the county.


This audit was authorized under Utah Code Title 17, Chapter 19a, “County Auditor”, Part 2, “Powers and Duties.” We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions.


We appreciate the cooperation and assistance provided by the County Council and Council staff during this audit. For further information or clarification regarding this report, please feel free to contact me at 385-468-7200.


Chris Harding, CPA, CFE, CIA
Salt Lake County Auditor