The Office of the Utah State Auditor (Office) released its Single Audit Report of the Fiscal Year 2024 expenditures of federal funds by the State of Utah (State). The report verifies the oversight of more than $9 billion in federal funds and the State’s compliance with federal regulations governing their use. Eighteen audit findings related to financial reporting errors, noncompliance with accounting standards, and inadequate oversight of taxpayer funds are included. The full report, including all findings, is publicly available here.
State Auditor Tina M. Cannon commented, “This audit details several findings requiring corrective action by State departments and agencies, both to fulfill financial reporting requirements and to ensure proper oversight of taxpayer funds. To address these issues, we recommend that the State of Utah prioritize competitive salaries, professional development opportunities, and retention strategies for experienced accounting personnel.”
The audit was conducted in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The audit reports on compliance and internal control, at the financial statement level, at the major federal program level, and the Schedule of Expenditure of Federal Awards.
Auditor Cannon continued, “Strengthening financial management across all federal programs requires personnel with appropriate accounting expertise, including proficiency in Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards Board (GASB) regulations, and internal control frameworks. The ability to attract, train, and retain skilled professionals will mitigate the risk of financial misstatements, inefficiencies, and potential mismanagement of public funds.”
The Federal Government mandates that the State conduct a comprehensive audit of its financial statements and federal programs as a prerequisite for receiving federal financial assistance. This audit, known as the “single audit,” assesses compliance with laws, regulations, and internal controls related to major programs. These programs are categorized as Type A, which includes those with federal expenditures exceeding $27,006,000, and Type B, which fall below this threshold. In fiscal year 2024, the State had 27 Type A programs and numerous Type B programs.
The Office of the Utah State Auditor operates independently from other State agencies and departments. Its staff must adhere to professional and ethical standards in compliance with statutory accountability requirements. The audit obtained evidence sufficient and appropriate to provide a basis for its opinion on compliance for each major federal program.
