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Council accepts City of Liberty Hill annual financial report; auditors issue unmodified opinion
Summary
Brooks Watson and Company presented the 2024 annual financial report and issued an unmodified opinion. Council accepted the report; auditors noted strong reserves, a nearly 99% funded pension, and recommended internal control follow‑ups documented in accompanying letters.
City Council accepted the City of Liberty Hill's annual financial report for the year ended Sept. 30, 2024, after a presentation by external auditors Brooks Watson and Company.
Auditor John Watson presented the firm's report and described the audit procedures. Watson said the firm issued an unmodified opinion on the city's financial statements and commended city staff for cooperation during the audit. "Your unassigned fund balance in the general fund was approximately $15,000,000 that is 50% of your annual general fund expenditures," Watson told council. He noted total assets exceeded total liabilities by about $159 million and highlighted that the city's pension plan was 99% funded per the most recent actuarial report.
The auditor reviewed high‑level revenue and expense amounts for governmental and proprietary funds, noting sales tax and property tax as major revenue sources and noting an operating deficit in the water fund that staff and council earlier addressed in the utility rate discussion. The audit included required communications on internal control observations and recommended follow‑up; staff said many items had already been addressed while others will be scheduled into a work plan.
Councilmembers praised finance staff for completing the audit in a timely manner and noted the importance of improved document management to address missing historical records cited in the auditor's internal control letter. The council voted to accept the annual financial report; the motion carried 6–0.
Votes at a glance: Acceptance of City of Liberty Hill annual financial report for year ending 09/30/2024 — Approved, 6–0.
Next steps: Staff will continue implementing internal control recommendations and pursue a records/document management plan; finance will provide updates to council as items are addressed.
