Sewer figures in Santaquin's 2025 audit narrative differ from its statements
The management's discussion in Santaquin's fiscal 2025 annual financial report gives sewer-fund results that do not match the audited statements in the same report. A supplementary schedule's totals column is also off by $49,205.
Continuing story: Auditing Santaquin
Santaquin's annual financial report for the year ended June 30, 2025 opens with management's discussion and analysis, a narrative summary that the auditor's report describes as required supplementary information. The auditor applied 'certain limited procedures' to it and does 'not express an opinion or provide any assurance' on it. [6]
The sewer fund
The discussion says the sewer fund's change in net position was $2,274,689, '$701,008 more than the previous year's net change.' It says sewer unrestricted net position amounts to $70,861. [1]
The audited statement of revenues, expenses and changes in net position reports a $1,979,246 change in sewer net position. [2]
The audited statement of net position shows sewer unrestricted net position of negative $198,833, within total sewer net position of $16,175,797. Of that total, $8,672,258 is restricted for impact fees and $7,702,372 is net investment in capital assets. [3]
The discussion's own citywide table reports a $4,574,256 change in business-type net position, which matches the statements' total for the water, sewer and storm drain funds. [1][2]
Unrestricted net position is an accounting classification, not a cash balance. The sewer fund reported $8,268,050 in restricted cash at year end. [3]
A totals column
The supplementary schedule of revenues, expenditures and changes in fund balances for nonmajor governmental funds lists seven funds. Its fund-by-fund net changes add to $2,849,624, the same figure the main governmental funds statement reports for nonmajor funds. [4][5]
The schedule's totals column instead shows a $2,898,829 net change and a $2,623,161 deficiency of revenues under expenditures. The main statement shows a $2,672,366 deficiency. Each difference is $49,205, the amount the Santaquin Special Service District spent that year. [4][5]
Both the totals column and the main statement show nonmajor fund balances rising from $3,505,609 to $6,355,233, which is a $2,849,624 increase. [4][5]
The auditor's report says the combining and individual nonmajor fund statements are 'fairly stated in all material respects in relation to the basic financial statements as a whole.' [6]
This story compares figures within one report. The differences are not audit findings, and the auditor's opinion on the basic financial statements was unmodified. The Ledger has not asked the city or the auditor about them.
Sources
- Santaquin City · FY2025 management's discussion and analysis, individual funds
- Santaquin City · FY2025 statement of revenues, expenses and changes in net position, proprietary funds
- Santaquin City · FY2025 statement of net position, proprietary funds
- Santaquin City · FY2025 combining statement, nonmajor governmental funds
- Santaquin City · FY2025 statement of revenues, expenditures and changes in fund balances, governmental funds
- Larson & Company · FY2025 independent auditor's report
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.