District's draft FY2025 audit restates White City's starting net position by $7.3 million

The Greater Salt Lake Municipal Services District's FY2025 financial statements report White City as one of seven discretely presented component units. In the copy posted in March 2026, which is marked draft, White City's beginning net position was $8,752,219 as previously reported. ^[1]

A $7,306,073 'restatement due to correction of error' raises it to $16,058,292. With a $4,462,616 change in net position during the year, White City's ending net position is $20,520,908. ^[1]

What the restatement is

Note 8 of the statements says the district recorded a correction of an error from the prior period related to capital assets. Across all component units the correction totals $70,906,372. ^[1]

In White City's column at June 30, 2025, capital assets total $13,541,924 for land, roads, bridges and construction in progress and $6,066,339 for buildings, equipment and infrastructure, net of depreciation. ^[1]

The auditor's report in the draft gives an unmodified opinion and says the 2025 statements have been restated; the opinion is not modified with respect to that matter. ^[2]

The finding

The draft compliance report lists finding 2025-001, 'Restatements,' as a material weakness in internal control. It says the district identified additional capital assets that had not been previously recorded, and that the district did not have sufficient controls to ensure all capital assets were identified, tracked and recorded on a timely basis. ^[3]

The auditor recommended controls to ensure capital assets are properly identified, recorded and reconciled throughout the year. The response from officials says they will make necessary changes. ^[3]

At the district board's March 25, 2026 meeting, the auditor said three audits were involved and declared the statements to be in compliance in all material respects, according to the minutes. Trustee Michael Jensen moved to accept the audited statements, Trustee Allan Perry seconded, and Trustees Zuspan, Brems, Clayton, Jensen, Perry and Valdez voted aye. ^[4]