The Office of the State Auditor (Office) today released a financial audit of Uintah County (County). The Office received hotline (whistleblower) tips about potential misuse of funds at Uintah County. State Auditor John Dougall exercised his constitutional authority to perform financial post audits of public accounts, directing the Office to conduct an audit of the County’s financial statements and its compliance with federal grant requirements. (Utah Constitution Article VII, Section 15)
Auditors issued 13 findings of varying severity regarding oversight and financial control weaknesses (starting on page 93). In addition, Uintah County management’s refusal to take responsibility for the accuracy of the County’s financial statements compelled the Office to disclaim an opinion on the financial statements. As such, the auditors could not attest to the fair presentation or accuracy of the information reported in the County’s 2020 financial statements.
The findings identified by the audit team include issues spanning the entire spectrum of government accounting from its tone at the top to its day-to-day management of federal grants and include:
- County Lacks an Effective Financial Control Environment
- Multiple Significant Financial Statement Adjustments Due to Inadequate Financial Close‐out Controls
- Lack of Procedures to Ensure Accurate Recording and Tracking of Capital Assets
- Accounting for Assets Reported Under the Modified Approach Not in Accordance with Generally Accepted Accounting Principles
- Improper Spending of Coronavirus Relief Fund Monies
- Circumvention of Established County Purchasing Policy
- Multiple Errors in SEFA Preparation Due to Lack of Sufficient Capability and Controls
- Accounting System Inadequate to Capture Data Critical to Internal Controls
- Inadequate Separation of Duties Related to Accounting System Development, Deployment, and Change Management
- County Officials Did Not Disclose Conflicts of Interest During 2020
- Improper Spending of Coronavirus Relief Fund Monies
- Ineffective Federal Program Management
- County Did Not Properly Oversee Submission of Required Reports to Federal Government
Details of findings are provided in the Schedule of Findings and Questioned Costs, Part II and Part III.
The audit’s concluding remarks state, “The Uintah County leadership’s disagreement with the findings noted above highlights the lack of understanding and lack of responsibility with which they approach execution and oversight of financial reporting, which the auditor finds concerning.”
State Auditor John Dougall emphasized, “Every political subdivision of the State of Utah is responsible for appropriately managing and reporting its financial activities. I’m deeply troubled by the severity of financial impairment in Uintah County government, particularly the disregard for regulations required for federal funding. And I’m particularly concerned by the inability or unwillingness of county officials to stand behind the accuracy of the county’s financial statements. Both the Uintah County Commission and Clerk/Auditor share responsibility for overseeing the finances of Uintah County. They should take immediate steps to significantly improve internal processes, procedures, and adherence to state and federal guidelines.”
The report may be found on the Office’s website, auditor.utah.gov.
