Parowan council accepts clean FY25 audit; approves delayed fraud‑risk assessment
January 09, 2026 | Parowan City Council, Parowan City Council, Parowan , Iron County, Utah
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Parowan — The Parowan City Council on Jan. 8 accepted an independent audit finding that the city’s fiscal‑year 2025 financial statements “present fairly, in all material respects” under U.S. generally accepted accounting principles. Gabe Miller, CPA, a partner with auditors Kimball & Roberts, read the firm’s unmodified opinion and summarized financial highlights, including a combined net position increase and an unrestricted net position the report showed as approximately $12.4 million.
Miller told the council the audit team found the statements reliable and noted no material misstatements. Rick Roberts, who presented compliance findings, said the audit identified one instance of noncompliance: the city had not completed and approved its annual fraud‑risk assessment within the fiscal year as required by statute and guidance. Roberts read the finding tied to code section 51A‑201.5 and Utah State Auditor guidance and recommended the council approve the assessment annually and document it in minutes.
Mayor Holcomben and staff explained the lapse resulted from unusually high turnover in the treasury office during the year; the auditors’ management‑response included steps to train the new treasurer and ensure future timely filings. Councilmember (S9) moved to approve the audit report; the motion carried unanimously. Council later moved to approve the FY26 fraud‑risk assessment so the city could upload documentation to the state auditors’ office.
The audit and the approval of the fraud‑risk assessment mean the city will meet the state’s timing expectations going forward, staff said. The auditors noted that the internal‑control review was limited in scope and that material weaknesses could exist that were not identified in testing, standard language the firm included as part of its compliance reporting.
What happens next: The audit report and the fraud‑risk assessment will be posted in compliance with state rules and retained for future audits.
Miller told the council the audit team found the statements reliable and noted no material misstatements. Rick Roberts, who presented compliance findings, said the audit identified one instance of noncompliance: the city had not completed and approved its annual fraud‑risk assessment within the fiscal year as required by statute and guidance. Roberts read the finding tied to code section 51A‑201.5 and Utah State Auditor guidance and recommended the council approve the assessment annually and document it in minutes.
Mayor Holcomben and staff explained the lapse resulted from unusually high turnover in the treasury office during the year; the auditors’ management‑response included steps to train the new treasurer and ensure future timely filings. Councilmember (S9) moved to approve the audit report; the motion carried unanimously. Council later moved to approve the FY26 fraud‑risk assessment so the city could upload documentation to the state auditors’ office.
The audit and the approval of the fraud‑risk assessment mean the city will meet the state’s timing expectations going forward, staff said. The auditors noted that the internal‑control review was limited in scope and that material weaknesses could exist that were not identified in testing, standard language the firm included as part of its compliance reporting.
What happens next: The audit report and the fraud‑risk assessment will be posted in compliance with state rules and retained for future audits.
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