Honeyville's fiscal 2025 audit reports general fund spending above budget in three departments

Honeyville's general fund spent more than its final adopted budget allowed in three departments during the year ended June 30, 2025, according to the city's audit, which reports it as a state compliance finding. ^[1]

The finding, item 2025-001, says Utah Code sections 10-6-121 and 10-6-123 require that expenditures not exceed the amounts the governing body appropriated in the final budget, and that the city did not process a formal budget amendment before year-end. ^[1]

The three departments

Note 8 of the audit lists the overruns. The cemetery spent $71,492 against a $45,000 budget, $26,492 over. Public safety spent $56,859 against $47,000, $9,859 over. Parks and recreation spent $51,840 against $45,000, $6,840 over. The three total $43,191. ^[1]

The audit says the level of budgetary control is the department within the general fund. Total general fund expenditures were $623,811 against a final budget of $620,000. ^[1]

Management's discussion, which is unaudited, says spending rose mainly because of park improvements and a project completed at the cemetery, while road maintenance was deferred. Highways and public improvements spent $108,475 of a $143,000 budget. ^[1]

What the auditors recommended

Davis & Bott recommended that the city monitor departmental spending more closely, process budget amendments before year-end when needed and consider adding contingency amounts to budgets. ^[1]

The city's response in the audit says it agrees with the finding and that management will strengthen monitoring so budget amendments are made when needed. ^[1]

The audit lists no prior-year state compliance findings. The auditors' opinion on state compliance says the city complied in all material respects with the requirements tested, which included budgetary compliance and fund balance. ^[1]

Internal control

Separately, the auditors reported item 2010-001 as a material weakness in internal control over financial reporting. The finding cites a lack of segregation of duties, inadequate control over financial records, insufficient controls over preparing financial statements and limited oversight of financial reporting. ^[1]

The audit gives the cause as limited staffing and resources and says the weakness increases the risk of material misstatement, whether due to error or fraud. The city's response says it agrees and will continue to evaluate options to improve internal controls. ^[1]

The same report says the auditors' tests disclosed no instances of noncompliance required to be reported under Government Auditing Standards. ^[1]