Kamas audit reports a finding on road and park impact fees held more than six years
Kamas's fiscal 2025 state compliance audit reported one finding, on road and park impact fees held longer than six years without a plan for their use. The city's schedule shows $192,967 in road fees and $172,023 in park fees on hand at June 30, 2025.
Continuing story: Auditing Kamas
Kamas held road and park impact fees for longer than six years with no plan stating how the money would be used, according to the one finding in the city's fiscal 2025 state compliance audit. [1]
The auditors, Child Richards CPAs & Advisors, wrote that state compliance requires impact fee proceeds to be used in a timely manner, with appropriate, documented reasons for holding fees longer than six years. They concluded that the city is noncompliant with the Utah Code and that the finding has no effect on the financial statements. [1]
The auditors' opinion on state compliance was not modified because of the matter. [5]
What the city holds
The impact fee schedule Kamas filed with its audit lists $192,967.41 in road impact fees on hand at June 30, 2025. The road reserve was $186,659.77 a year earlier; in fiscal 2025 the city collected $250.00, credited $8,353.64 in interest and spent $2,296.00. [2]
The oldest road fees on the schedule were collected in fiscal 2010. The entries collected from fiscal 2010 through 2018 list the Gristmill Road Bridge as the project, with 2026 as the budgeted expenditure year. [6]
The park schedule lists $172,022.76 on hand. The park reserve was $171,075.23 a year earlier; in fiscal 2025 the city collected $1,137.50, credited $7,549.83 in interest and spent $7,739.80. Its earliest entries date to fiscal 2008. [3]
The fiscal 2025 spending was a $2,296.00 sidewalk installation for the new City Hall park restroom, paid from road fees, and a $7,739.80 pavilion installation at the new City Hall park, paid from park fees. The schedule lists both projects as complete. [2][3]
The audit reports the same amounts, $192,967 and $172,023, as restricted fund balance in the general fund. [4]
The city's response
The auditors recommended a plan for the aged fees, such as a capital facilities plan that sets out how and when they will be spent. [1]
Management responded that the city is updating its capital facilities plan and, once it is completed, will work toward completing the necessary projects within an 18-month time frame to eliminate impact fee funds older than six years. [1]
The finding covers road and park fees. The schedule separately lists $348,270.89 in sewer impact fees on hand and no water impact fees on hand. [7]
This story reports a state-compliance finding. The auditors' compliance opinion was not modified for it.
Sources
- Kamas City · Basic financial statements, year ended June 30, 2025 (state-filed copy), schedule of findings, item 2025-01
- Kamas City · Impact fee schedule, revenues on hand June 30, 2025 (state-filed copy), road fee totals
- Kamas City · Impact fee schedule, revenues on hand June 30, 2025 (state-filed copy), park fee totals
- Kamas City · Basic financial statements, year ended June 30, 2025 (state-filed copy), balance sheet, governmental funds
- Kamas City · Basic financial statements, year ended June 30, 2025 (state-filed copy), state compliance report
- Kamas City · Impact fee schedule, revenues on hand June 30, 2025 (state-filed copy), road fee entries
- Kamas City · Impact fee schedule, revenues on hand June 30, 2025 (state-filed copy), sewer fee totals
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.