Fairview auditors give town a clean opinion; council hears month-to-date revenue uptick

Claire Wootton, director for Weaver, presented the independent audit of the Town of Fairview’s financial statements for the year ended Sept. 30, 2024, to the Town Council on April 1, 2025. Weaver issued an unmodified ("clean") opinion on both the financial statements and the federal single audit, and reported no material weaknesses, no significant deficiencies, and no compliance findings for the federal awards the firm tested.

The audit firm identified Fairview as a high-risk auditee under Uniform Guidance only because the town had not had a single audit in each of the prior two fiscal years; Weaver said performing single audits for two consecutive years would move the town to low-risk status for future federal testing. Weaver tested the Economic Development Assistance Program as the major federal program and reported no findings. Claire Wootton said the firm performed the audit under generally accepted auditing standards, Government Auditing Standards, and Uniform Guidance.

Why it matters: An unmodified opinion means the auditors found the town’s financial statements to be materially correct and its internal controls adequate for items tested. That finding affects the town’s standing for federal grant compliance and public confidence in financial reporting.

Council finance staff also presented the town’s fiscal-year-to-date operating picture (through February, the fifth month of the budget year). Town CFO Steven reported general fund revenue collections of about $9.6 million, approximately $779,060 higher than the same point in the prior fiscal year. General fund expenditures through February totaled $5,139,111 (about 41% of budget).

Key numbers and highlights provided in the meeting packet and presentation: - Governmental fund expenditures (FY24): $19,300,000 (a 7% increase from FY23) - Governmental revenues (FY24): $17,800,000 (a 9% increase); increases led by $923,000 in property tax revenue and $787,000 in intergovernmental revenue - Governmental fund balance at Sept. 30, 2024: $12,500,000; governmental funds decreased by $386,000 year over year - Capital projects outlay (noted): about $4,900,000 primarily for the Frisco Road project - Enterprise funds net position increased by $1,500,000; operating revenues up $1,400,000 largely from water and sewer

The auditors explained program-risk selection: ARPA funding did not meet the major program threshold this year but remains subject to review in future years. Weaver also walked the council through the firm’s risk-based procedures (including testing 40 cash disbursements and payroll transactions) and said no unusual accounting entries or estimate issues required reporting. Management representation letters were signed by Town Manager Julie and CFO Steven before release of the March 27 audit opinion.

On budget monitoring, staff said utility fund collections were $3,775,768 through February (37% of budget) and that sales tax collections showed year-over-year growth (total collections $2,293,711, up 3.5% from prior year). Staff noted some timing and one-time items: a small rebate from the North Texas Municipal Water District (~$11,000) and a penalty from an illegal hydrant hookup (~$5,000).

Council members praised staff for the clean audit and asked standard follow-ups about fair-value adjustments and impairments; auditors and staff said they identified none. The council did not take formal action on the audit presentation during the meeting.

Ending: The town manager and CFO told the council they will continue to provide monthly or quarterly financial snapshots in the packet and welcomed feedback on report formatting.