Committee: depreciation omission pushed two enterprise funds over budget; amendment made
Moab staff told the audit committee that depreciation had not been budgeted in prior years, which caused two enterprise funds to exceed budgeted expenditures; staff said depreciation has been added and a budget amendment was made to correct the current year.
The full story
The audit disclosed that depreciation had not been budgeted for some city assets, which caused two enterprise funds to appear to exceed their budgeted expenditures under state law. Mike, the auditor, explained depreciation is a noncash allocation of asset cost over its useful life and therefore affects the financial statements even though no cash leaves the fund.
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