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Red Oak council adopts FY2024 audited financial report with unmodified opinion
Summary
The Red Oak City Council unanimously adopted a resolution approving the city's FY2024 Annual Comprehensive Financial Report (ACFR), which auditors presented with an unmodified (clean) opinion and highlighted stable reserves and capital funding from the 2023 bond.
The Red Oak City Council on a 5-0 vote adopted Resolution No. 25-029R approving the city's Annual Comprehensive Financial Report for fiscal year 2024, an audit presented by Patillo, Brown & Hill that issued an unmodified opinion.
Auditor John Manning told the council the ACFR is voluntary but provides a fuller picture of the city's finances and supported the firm's highest-level audit opinion. Manning described the city's balance sheet as strong, noting total assets of "about over a $111,000,000" and restricted cash of roughly $36'$37 million tied to the 2023 bond issue. He said the general fund added roughly $845,000 in the year, bringing the general fund balance to about $15.6 million.
"We did not have to modify our opinion," Manning said, explaining an unmodified opinion signals auditors found no material errors or control failures that would affect the financial statements. He also told the council the audit found no internal control deficiencies or material weaknesses requiring formal findings, and the city did not meet the federal threshold that would require a single-audit report.
Why it matters: Council members and staff said the ACFR and the clean opinion support the city's creditworthiness and grant applications and confirm the finance office's controls. Finance Director Tim McRoberts and Assistant Finance Director Tory were on hand to answer questions; McRoberts noted the general fund had met its revenue budget through April and that permit-related revenues had been strong.
Supporting details: Manning walked the council through major funds, noting large IDC and EDC balances reflect land held for resale and that the enterprise utility fund increased by about $5 million, primarily from developer-contributed capital assets and ARPA-funded capital grants. Property tax receipts were confirmed with other governments; auditors verified cash and investments directly with third parties, practices Manning cited as reducing audit risk.
Votes at the meeting: The council voted to adopt Resolution No. 25-029R, approving the ACFR and authorizing transmittal of the bound financial statements and auditor letter. The roll call recorded Franklin, Flannery, Miller, Lightfoot and Smith voting "aye".
What comes next: Staff will publish the ACFR as required and make the audit and supporting letter available to bond rating agencies and other users. Councilmembers said they would consult staff if they had further questions about the financial notes or grant schedules.
