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Independent auditors give Kaysville City a clean opinion; note minor budget variances
Summary
Independent auditors presented a clean (unmodified) opinion for fiscal year ending June 30, 2024, and reported that internal controls are generally effective. The audit included one formal finding consisting of negative variances in specified budget line items that staff characterized as allocation/timing issues.
KAYSVILLE, Utah — The independent audit of Kaysville City’s fiscal year ended June 30, 2024, delivered a clean (unmodified) opinion, the highest level auditors can give, the city’s independent auditor said at the Dec. 19 council meeting.
Erin Hickson, representing the auditing firm engaged by the city, told the council the financial statements “present fairly in all material respects” and that the auditors assessed the city’s internal control design and operating effectiveness and found them generally adequate. The auditor noted the general fund’s unassigned/committed fund balance was about 34.9% of annual revenues, just below the 35% figure auditors referenced as a commonly cited upper threshold in the compliance guide.
The audit report identified one compliance finding (listed as Finding 2024‑1 in the report) covering two areas: a negative budget variance in the general fund capital outlay line item and a negative variance for the streets/public works line of the capital projects fund. Hickson told the council such variances are often allocation or timing matters rather than systemic overspending and are typically corrected by reallocating line items within budgetary latitude.
Why it matters: A clean opinion signals auditors did not find material misstatements in the financial statements and suggests the city’s financial reporting and broad internal controls are sound. The negative variances require council attention to ensure budgets are monitored and line items are adjusted to eliminate the deficit positions.
Council reaction: Council members asked whether the city is fiscally sound. The auditor said the city is in a strong fiscal position and noted the state guidance that cities should maintain a minimum unassigned fund balance (auditor cited a commonly referenced 5% minimum). The auditor recommended ongoing fee studies to ensure user fees are set appropriately so enterprise and restricted funds are adequately financed.
Ending: The auditor said staff and departments had been cooperative and that the clean opinion reflected citywide attention to fiscal stewardship. Council thanked staff and the auditing team and accepted the report for further review and follow up on the noted budget variances.
