American Fork's 2025 audit corrected $3 million in water grant revenue counted in 2024
The city's fiscal 2025 financial report says $3 million in grant revenue for a since-delayed water project was recorded too soon, and lowers the starting balances to match. The report also lists that year's tax-increment reimbursements to two auto dealers.
Continuing story: Auditing American Fork
American Fork's fiscal 2025 annual financial report says the city found an error in its fiscal 2024 statements: $3,000,000 in grant revenue had been accrued in the Water Fund. [1]
According to Note 16, the revenue was recognized "within the availability period for reimbursement of project improvements for a capital project that has since been delayed." The report calls it "a correction of overstated revenues and understated deferred revenue." It does not name the grant or the project. [1]
The city corrected the error by restating its starting balances for fiscal 2025. Citywide net position on July 1, 2024 went from $171,904,150 to $168,904,150. The proprietary funds' balance went from $120,967,797 to $117,967,797. [1]
The auditor, Larson & Company of Spanish Fork, wrote in its Dec. 16, 2025 report that the statements "present fairly, in all material respects," the city's financial position. [1]
Dealership reimbursements
Note 15 of the same report lists the city's tax-increment agreements. National Buick GMC received $210,316 in fiscal 2025 under a Dec. 23, 2019 agreement. That agreement excludes the first $100,000 of increment each year, reimburses a tiered share above it, and caps reimbursements at $1 million. [1]
Doug Smith Auto received $226,881 under its Aug. 24, 2021 agreement, which excludes the first $775,000 a year and caps reimbursements at $2 million. AFCC Limited, the Meadows shopping center developer, did not reach the threshold for a share under its 2014 agreement. [1]
An accounting correction changes when revenue is recorded. The report does not describe missing cash. The dealership reimbursements are payments under two separate agreements and are not added together.
Sources
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.