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City auditor reports clean opinion, $20.2 million unassigned fund balance
Summary
An auditor presented the 2024 Annual Comprehensive Financial Report to the Texarkana City Council, saying the city received clean (unmodified) opinions and ended the year with an unassigned general fund balance of about $20.2 million; pension funding and upcoming Governmental Accounting Standards Board (GASB) changes were discussed.
David Coleman, presenter of the annual comprehensive financial report, told the Texarkana City Council on Monday that the city’s 2024 audit is complete and received clean opinions.
"We have completed our audit," Coleman said, and noted an "ending unassigned fund balance" of $20,200,000, roughly $3 million higher than the prior year. He said operating revenues for Texarkana Water Utilities increased about $1.5 million year over year, and net position for the utility improved compared with the prior year.
Coleman described the three standard audit opinions the city receives — on the financial statements, internal control and federal compliance — and said the firm found no issues to report on internal control or federal program compliance. He identified the Community Development Block Grant (CDBG) program and the WIC program as the two federal programs selected for audit this year, with about $522,000 in CDBG expenditures reviewed.
The presentation highlighted the city’s pension and postemployment liabilities. Coleman said the city’s TMRS plans were "hovering between 88–90% funded," while the firefighters’ plan had a funding level of about 61% this year compared with roughly 75.5% the prior year. He also said the city’s OPEB liability (retiree health insurance) remained near prior-year levels, about $15.2 million.
Coleman warned the council that several GASB accounting pronouncements will require changed disclosures and accounting treatments in coming years, mentioning GASB 103, GASB 34 (auditing and presentation basis used today), and GASB 104 and items related to compensated absences and capital asset disclosures. He told council staff he will work with them on implementation.
Mayor Bob Brookman and council members thanked the presenter and city staff; no formal council action was required during the briefing.
The audit presentation and the discussion are scheduled to be part of the public record for the council’s fiscal oversight and future budget considerations.
