Auditing Morgan: What the city's audit and budget filings say about its money

Morgan City's audit classifies its governmental activities as public safety, public works, parks and recreation, the cemetery and general government administration. Its business-type activities are water, sewer, electric and sanitation utilities. ^[6]

This series examines the city's finances using its audit, budget and meeting records. Each story cites the public record behind every figure.

The audit

Gilbert & Stewart, CPAs of Provo, audited the city's statements for the year ended June 30, 2025. It said they present fairly, in all material respects, the city's financial position. The report is dated Dec. 31, 2025. ^[1]

The auditors identified no internal control deficiencies they considered material weaknesses. Their tests found no noncompliance required to be reported under Government Auditing Standards. ^[2]

The separate state compliance report says Morgan complied in all material respects with the state requirements tested. It also says testing disclosed instances of noncompliance, described as item 25-1 in a letter to management dated Dec. 31, 2025. That letter is not part of the filed report. ^[2]

The General Fund

In fiscal 2025 the General Fund took in $4,191,878 and spent $3,757,466. It also transferred $500,000 to the capital projects fund. ^[10]

Its fund balance fell by $65,588 to $1,676,589. Of that, $1,250,892 was restricted for purposes including Class C roads, impact fees and transportation sales tax, $54,000 was nonspendable prepaids, and $371,697 was unassigned. ^[3]

The capital projects fund held a separate $2,912,958, which the audit lists as assigned to capital projects. ^[3]

The fiscal 2027 budget

The budget report's "2027 Final Budget" column totals $6,747,770 for the General Fund. That includes $1,106,470 appropriated from the fund's beginning balance, $1,167,000 in state grants and $1,500,000 for a line labeled park improvements/splash. ^[5]

The capital projects fund's 2027 column lists $2,070,000 in state grants and $3,440,000 in capital outlay. ^[7]

Debt and the redevelopment agency

At June 30, 2025, Morgan owed $3,328,000 on Series 2022 sales tax revenue bonds issued for road improvements, which mature Dec. 15, 2032. It owed $453,000 on Series 2010 sewer bonds and $2,068,000 on Series 2018 sewer bonds. ^[4][11]

The city's redevelopment agency fund had a $506,438 balance at June 30, 2025. ^[8]

Overall, the audit reports total net position of $37,191,579, which includes $25,242,930 invested in capital assets. ^[9]