EDC audit finds clean opinion but flags untimely bank reconciliations

The Bandera Economic Development Corporation received an unqualified audit opinion for fiscal year 2023–24, but auditors flagged a material weakness because bank reconciliations were not prepared timely and did not fully reconcile to the general ledger. Staff presented a written summary of the audit at the meeting because the auditors could not attend. "It's an unqualified opinion, which is good. That means it's a clean audit," said Staff member, who reviewed the packet. The audit summary reported a fund balance of $2,043,004 restricted for economic development and an increase in fund balance of $314,349 for the year ending 2024. The auditors also reported a positive budget-to-actual variance of $638,350, noting the organization budgeted notably more than it spent. The audit packet lists a recommendation to adopt year-end closing procedures to avoid repeat findings; staff said they will draft procedures and can adapt them from the city's documents. During the meeting staff said reconciliations are current now but that an earlier gap of roughly 11 months could appear as a finding in future audits unless procedures remain consistent. The board was asked for a motion to approve the audit so auditors could begin follow-up work.