Why does my washer drain into utility sink which somehow drains through a pipe in the cement floor to my sump pit and the pit via pump sends the drainage through a two inch pvc pipe which goes out through the front of the house and dumps on my front lawn.

I am assuming the drain pipe is not broken in your front lawn... Some people utilize discharged water from washer for irrigation purposes. So they run separate drain outside and let it drain into the vegetation around the house. That could be the case here. Milo

I'm still looking for a problem here. Everything seems to be doing what it's meant to so what's the complaint? Just curious, Tom

Well upon further inspection it seems that the utility sink and the toilet as well as the washer which drains into the sink are all going into the pit and then dumping unto my lawn I am not sure but I didn't think that's how it works in the chicago suburbs also the pit has a solid lid or cover with a slot for the pump cord with a smell coming out

Upon further inspection it seems that in my basement the washer drains into my utlity tub which then drains into my sump pit also my basement toilet and sink do the same then the pump dumps it onto my front lawn the pit has a solid cover with a slot for the pump cord and there is the smell of sewage as well the other thing is that it had not been doing this before now these all drain into the pit via the one and only pipe leading into the pit that pipe is about twelve inches down from the pit opening or the top of the pit

You do not have a sump pump. What you have is a ejector pit. That, If it terminates on your lawn is illegal and a health hazard to anybody living around it.
By dumping the waste from your toilet out on your front lawn you have converted your front lawn into a cesspool. Your pit should have its own dedicated vent out the roof. Without that you will get odor from the pit.
[I] would get a licensed plumber to look your setup over and bring it up to code before an inspector sees it and takes you to court or the neighbors complain about the smell of raw sewage. Let us know how you make out. Good luck, Tom