City auditor awards ‘clean’ opinion; flags recurring year-end close deficiency tied to staff turnover

Weaver & Associates delivered the City of Corpus Christi’s annual comprehensive financial report for the fiscal year ending Sept. 30, 2024, to the City Council and said the auditors issued an unmodified ("clean") opinion while reporting one recurring significant deficiency tied to untimely year‑end closing procedures.

The clean opinion means the independent auditor concluded the city’s financial statements were presented fairly, in all material respects, under generally accepted accounting principles. Matt Rogers, engagement director from Weaver, also told the council the audit included a federal single audit and that major federal programs included immunization grants and the Coronavirus State and Local Fiscal Recovery Fund (ARPA).

Why it matters: a clean opinion supports investor and public confidence in the city’s finances, but the recurring finding on closing procedures indicates internal controls and timeliness still need attention. Delays in closing and preparing schedules can delay financial reporting and complicate budget oversight.

Weaver’s findings

“We issued an unmodified opinion,” Matt Rogers said. “We did not identify any material weaknesses in internal control, but we did identify one significant deficiency that was recurring.” The auditor described the issue as an untimely preparation of required year‑end schedules and other close deliverables; items that should have been complete in fiscal 2023 remained outstanding and carried into fiscal 2024, causing delayed issuance in the prior year.

Rogers said the firm expects the recurring deficiency to be resolved as newer finance leadership settles into place and closing procedures are formalized: “I do see an improvement in the processes in terms of getting the financial semi‑close more timely.” He also reported one uncorrected misstatement related to capital assets that had been reclassified from repairs and maintenance to capitalized assets; management corrected that beginning‑balance adjustment in the current year activity.

City response and council questions

Saraglio Saino, director of finance and procurement, told the council turnover among senior finance staff left knowledge concentrated in a few individuals. “When those folks retire or leave the city, that was not passed out to the team,” he said, adding the department has moved to more hands‑on operations and weekly meetings to address training and knowledge transfer.

Council members pressed for specifics. Councilwoman Sylvia Campos asked how long new staff had been in place and what steps the city was taking to train personnel; Saino and Assistant City Manager Heather Holbert described weekly staff training sessions, use of outside consultants for payroll process reviews and internal audit support, and a program to update standard operating procedures. City Manager Peter Zanoni said the administration eliminated a staff position that had previously helped departments document SOPs during last year’s budget reductions and that responsibility has shifted to department directors.

Rogers also summarized single‑audit coverage of federal and state programs and said the auditors issued an unmodified opinion on the Schedule of Expenditures of Federal Awards. Weaver issued no finding of material noncompliance for federal programs audited in the single audit this year.

Follow‑up and next steps

Council members asked for additional briefings. Several members said they had received the full audit materials late in the process and requested earlier delivery for review. Zanoni said the audit committee had received an in‑depth briefing and that staff could schedule a separate council briefing if members wanted a detailed walkthrough.

No formal council action was required on the audit opinion itself. Council members and staff discussed training, SOP updates, and scheduling of future briefings to ensure more timely financial close and more accessible audit materials for the full council.

Ending

The auditor’s clean opinion affirms the city’s financial statements for fiscal 2024, while the recurring significant deficiency highlights work remaining on year‑end processes and documentation. City finance leaders told the council they are prioritizing training, SOP updates and closer year‑end procedures to eliminate the recurring finding.