City of Killeen audit returns unmodified (clean) opinion for fiscal year 2024
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Summary
Independent auditors issued an unmodified opinion on the city's financial statements for the year ended Sept. 30, 2024, finding no reportable internal control deficiencies or material noncompliance, and reporting $21.4 million in federal award spending subject to single-audit testing.
The independent auditing firm Patillo, Brown & Hill issued an unmodified ("clean") opinion on the City of Killeen's financial statements for the fiscal year ended Sept. 30, 2024, auditor Mr. Taproot told the council on April 1.
The firm also performed the federal single-audit required after the city exceeded $750,000 in federal grant expenditures during the year. The auditors selected the Home Investment Partnerships Program and the Coronavirus State and Local Fiscal Recovery Fund as major programs for compliance testing and reported unmodified opinions on compliance for both programs.
Why it matters: a clean opinion indicates the financial statements are free of material misstatement and presented fairly in accordance with generally accepted accounting principles. The single-audit compliance results are important for federal grant eligibility and for the city’s stewardship of federal funds.
Key findings and context: auditors reported no significant deficiencies in internal control over financial reporting and no instances of reportable noncompliance with contracts, grants, laws, or regulations. The auditors confirmed there were no material audit adjustments and no fraud or illegal acts identified. The single-audit schedule of expenditures of federal awards showed the city spent just over $21,400,000 in federal awards during the fiscal year.
Auditor Mr. Taproot told the council the audit process included interim fieldwork in August 2024 and final testing during December and January. He also noted that while there were new accounting standards in prior years, the standards that came into effect for fiscal 2024 did not have a significant impact on the city's financial statements. The auditors said they will communicate upcoming new standards that could require attention in future audits.
Council reaction and next steps: Councilmembers thanked the finance department and audit support staff for preparing the nearly 180-page annual comprehensive financial report and for responding to audit requests. No formal council action was required at the work session; the audit report was presented as RS 25039 and later included on the consent agenda.
