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Audit shows positive net position for Emigration Canyon; council seeks clarity on allocations and billing
Summary
Audited financial statements covering Jan–Jun 2024 show the Emigration Canyon net position at roughly $4.2 million and a $66,870 operating surplus for the canyon; council asked staff to clarify intergovernmental billing and overhead allocation methods.
An audit presentation covering the district’s shortened fiscal year (Jan. 1–Jun. 30, 2024) showed Emigration Canyon with assets of about $4.4 million, liabilities around $215,000 and a net position of roughly $4.2 million. The district’s revenues and expenditures for the canyon were reported as $446,000 and $379,000, respectively, producing a $66,870 surplus that increased the canyon’s fund balance from $133,000 to $199,000.
Stuart, the auditor presenting the report, told the council there were no audit findings in the statements and that several interim and administrative items — including restricted cash and escrow accounts — were properly reported. He described the interim statements for July–December 2024 as on target: total revenues for that period were running at about 67% of expectations and sales tax collections were slightly above 50%.
Why it mattered: council members raised questions about how some costs are billed and allocated. One concern focused on invoicing for “code red” emergency responses where the district pays a full cost and then invoices the EID for 50%; members asked staff to confirm that the billed share was reflected accurately in the supporting documents. Another question addressed a retrospective allocation analysis for 2023 that some members said could misrepresent multi-year patterns, particularly where flood or bond-funded projects skew a single-year snapshot.
What the council asked staff to do: auditors and MSD staff agreed to review the supporting invoices and allocation methodology and report back. Stuart also said he could provide further documentation to show whether specific line items reflected full costs or the intended 50% invoices to partner agencies.
What’s next: staff will follow up with a clearer breakdown of the questioned line items, provide any missing invoices and consider a multi-year allocation analysis before the council finalizes any administrative changes tied to overhead allocations.
