Kanab's fiscal 2025 budget planned a $516,450 general fund drawdown; the audited fund grew $627,179

Kanab's final budget for the fiscal year that ended June 30, 2025 planned for the general fund balance to fall by $516,450. The audited results show it rose by $627,179. ^[1]

Budget and actual

General fund revenue was $7,234,500, which was $701,750 more than the final budget of $6,532,750. The largest difference was intergovernmental revenue, which came in $585,137 above budget. Sales and use taxes were $109,081 below budget, at $3,476,419. ^[1]

Spending was $5,603,344, which was $460,856 under the final budget of $6,064,200. Transfers to other funds, $1,003,977, were close to the $1,005,000 budgeted. ^[1]

The fund ended the year at $2,745,395, compared with the $923,375 the final budget projected. ^[1]

The $678,391 correction

The audit's Note 13 says that in prior periods the city had not accrued receivables related to certain tax revenues. To correct it, the city posted an adjustment that increased the general fund's beginning balance by $678,391, from $1,439,825 as previously reported to $2,118,216. ^[2]

The same amount was added to the beginning net position of governmental activities. A separate change for a new accounting standard on compensated absences reduced it by $72,571. ^[2]

Two net position figures

The management's discussion in the audit says the city's assets and deferred outflows exceeded its liabilities and deferred inflows "by $28.38 million as of June 30, 2025." The condensed table on the same page shows total net position of $35,562,411 for June 30, 2025 and $31,901,326 for the year before. ^[4]

The audit note does not name the tax revenues that were not accrued before fiscal 2025. ^[2]