Garland's fiscal 2025 audit reports two departments over budget and a deficit capital projects fund

Two Garland departments spent more than their final budgets in fiscal 2025, and the city's capital projects fund ended the year in deficit, according to the city's audit. ^[1]

Spending over budget

Finding 2025-02 says Utah law requires that spending by fund or department not exceed what the final budget appropriates. The auditors wrote that "the administrative department and garbage department expenditures, exceeded the final department budget within the General Fund," and that the capital projects and sanitation funds also went over. ^[1]

The general fund's budget-to-actual schedule shows administration at $757,147 against a final budget of $714,550, $42,597 over. Garbage was $198,546 against $197,991, $555 over. For the general fund as a whole, spending was $574,563 under the final budget. ^[1]

The finding also says state law requires the council to get financial statements each month, and that "the City council is also not provided a copy of the financial statements on a monthly basis." ^[1]

The city's response says the treasurer will work with the council on budget reviews and amendments and that "monthly financial statements will be provided to the City Council either electronically or in hard copy with their council packets." ^[1]

Deficit fund balance

Finding 2025-03 says the capital projects fund had a deficit fund balance at year-end, which state law does not allow. The auditors wrote that spending had exceeded revenue "for several years." ^[1]

The fund started fiscal 2025 at negative $24,676 and ended at negative $195,123. It spent $518,179 that year, including $501,852 in capital outlay, and received $65,000 from the general fund. ^[1]

The auditors recommended budgeting a transfer from the general fund to fix the deficit. The city responded that the matter "has been corrected in the FY 2025-2026 budget year" and that transfers are now scheduled and processed quarterly. ^[1]

The city's filed budget report lists $327,277 in general fund transfers to capital projects and $330,813 in capital projects fund balance appropriated in the fiscal 2026 budget column. For fiscal 2027, the capital projects page lists $60,500 from the general fund. ^[2]