Interlaken officials say they have addressed state auditor complaint; accounting adjustments identified

During the March 3 meeting the council discussed a recent complaint submitted to the Utah state auditor’s office concerning town procurement and expenditures involving Becker Excavation for emergency road and water repairs.

Chair (S2) told the council that the auditor contacted town staff about procurement and reporting issues; staff provided an outside AUP audit and additional documentation and reported they had not received further correspondence from the auditor in the weeks after. S2 said town records and the reports filed on the town website demonstrate transparency about spending.

Staff member (S1) then reviewed the town’s fiscal reports for FY2025 and said the town is compliant with state reporting requirements, including the AUP audit required for entities with revenue above an approximate $350,000 threshold. S1 noted the town collected $5,500 in road impact fees and identified a building fund balance that appeared larger than previously reported. S1 said an accounts-payable review found about $36,000 in excess items in the building fund (roughly $14,000 in accumulated administrative fees and $22,000 in other funds) and proposed transferring about $20,000 to the general fund while keeping a cushion for liabilities.

S1 also flagged one-time costs the town incurred this year for state-required PFAS testing and other water-chemicals monitoring, explaining that those charges contributed to some line-item variances. S1 told the council he will realign budget line items next year to show payroll taxes and related costs more clearly.

No formal actions were taken at the meeting on the auditor inquiry; S2 said staff will follow up with the auditor and report back to the council if the auditor requests additional materials.