Auditing Smithfield: what the city's audit, budgets and debt records show

Smithfield, Utah, is a Cache County city whose finances are documented in audited financial statements, annual budgets and City Council minutes filed with the state. This series follows those records. Each story links to the documents it relies on.

The city's most recent audited statements cover the fiscal year that ended June 30, 2025. Richey, May & Co. wrote that they "present fairly, in all material respects," the city's financial position, an unmodified opinion dated Oct. 14, 2025. ^[1]

Where the money is

In FY2025, the General Fund, which pays for police, fire, streets, parks and administration, took in $16,188,063 in revenue and spent $13,519,463, according to the audit's budget-to-actual schedule. It also transferred $2,000,000 to capital projects. ^[2]

At June 30, 2025, the General Fund's total fund balance was $10,670,186. Of that, $5,866,980 was unassigned and $4,427,563 was restricted for roads and capital projects. The separate Capital Improvements Fund held $5,996,957, committed for capital projects. ^[3]

The city's water, sewer, storm sewer and solid waste funds run as utilities. At June 30, 2025, the water fund reported $10,059,223 in cash and cash equivalents and $2,584,157 in restricted cash. ^[4]

Debt

The audit lists $1,407,000 in sales tax revenue bonds at June 30, 2025: $787,000 left on 2009 bonds for a city administration building and $620,000 on 2014 bonds for a library expansion. The final payments are scheduled for July 2035 and October 2039. ^[5]

Separately, the city owed $86,513 on financing leases for six Ford F150 trucks, due through June 2027. ^[6]

Budgets

The FY2026 budget the city filed with the State Auditor balanced the General Fund at $13,809,787. ^[7]

The FY2027 budget filed with the State Auditor in July 2026 balances the General Fund at $14,272,782. Its fund summary lists $29,468,602 in expenses and $24,470,074 in revenue across all funds. The expense lines include depreciation in the utility funds, which is a noncash cost, as well as transfers between city funds. ^[8]

The largest differences in that summary are in the water fund, where expenses exceed revenue by $3,637,215, and the storm sewer funds, by $2,034,327. The same funds carry capital-improvement lines of $4,458,730 and $2,247,936. ^[8]

What the audit found

The auditor reported two state-compliance findings for FY2025, one on documentation behind the city's fraud risk self-assessment and one on the size of the General Fund's unreserved balance. The auditor's opinion on state compliance was not modified by them. ^[9]

The audit's reporting-entity note says the city has no oversight responsibility for any other governmental entity. It describes the Cache Valley Transit District and the Cache Metropolitan Planning Organization as separate legal entities that the city participates in. The audit does not list a redevelopment or community reinvestment agency among the city's funds. ^[11]

The FY2026 audit had begun in August 2026 and would most likely be presented in December, City Manager Justin Lewis told the council on Sept. 9. ^[10]