Auditors give Smith County a clean opinion; local commentator warns of unusually large reserves

The Smith County Commissioners Court received the county’s fiscal year 2024 comprehensive annual financial report (CAFR) and heard commentary from an outside reviewer urging closer scrutiny of the county’s fund balance.

Tom Fabry, a public commenter who identified himself during the meeting, drew the court’s attention to the general fund balance reported in the CAFR and said it totaled $56,400,000. “That’s the same amount of money as you collect total annual in property taxes,” he said, and added that the reserves would allow the county to operate six months without additional revenue.

Kevin Cashin, representing the auditors, told the court the firm rendered an unmodified (clean) opinion on the county’s financial statements for the year ending September 30, 2024. Cashin summarized several line items in the report: restricted current assets decreased (largely due to spending on parking garage and road projects), capital assets increased—driven by a completed parking garage and courthouse work—and long-term liabilities moved modestly with a notable decrease in the county’s pension liability compared with the prior valuation date. He said the single-audit section tested the county’s American Rescue Plan Act (ARPA) funds and the Texas Anti-Gang program and reported no instances of noncompliance or significant deficiencies for those programs.

Cashin described net position and year-to-year changes in revenues and expenditures, and noted that interest earnings rose in the fiscal year. County staff and the court thanked the auditors and noted appreciation for staff who prepared the CAFR.

The presentation generated no formal action; the court accepted the report as part of its agenda.