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Rowlett auditors give city a clean opinion; council hears quarter-one financial update
Summary
Independent auditors told the Rowlett City Council the fiscal year 2023–24 financial statements received an unmodified (clean) opinion. Finance staff also reported first-quarter results for fiscal 2024–25 showing revenues slightly below forecast but utility and other funds performing near or above projections.
Claire Wooten, director at Weaver (the city's independent audit firm), told the Rowlett City Council on Tuesday that the audit of the fiscal year ending Sept. 30, 2024, resulted in an unmodified opinion.
Wooten said the firm performed the audit in accordance with generally accepted auditing standards and government auditing standards, and also performed a single audit for federal funds. "We have issued an unmodified opinion," she said, adding the audit identified no material weaknesses, no significant deficiencies and no independence matters.
The unmodified opinion means the auditors found Rowlett's financial statements fairly present the city's financial position for the year ended Sept. 30, 2024. Wooten told council the audit team performed tests of internal controls, fraud-inquiry procedures and that the most significant accounting estimates were pension and OPEB liabilities and incurred-but-not-reported medical claims prepared by actuaries.
Following the audit presentation, Finance Director Wendy Badgett briefed council on the city's comprehensive monthly financial report for the quarter ending Dec. 31, 2024. Badgett reported general fund revenues for the first quarter were about $59.0 million, roughly $1.1 million below the first-quarter forecast, mainly due to the timing of property tax receipts. She said property taxes represent about 60% of general fund revenue and that the shortfall primarily reflects that many property tax payments are not due until Jan. 31.
Badgett said sales tax receipts came in above forecast for the quarter and that utility fund revenues were roughly $665,000 above forecast driven by water and sewer receipts. She reported general fund expenses were about $1.5 million below forecast, driven by timing of supply purchases, seasonal services and contract renewals. Debt service revenues were short by about $643,000 for the quarter, again tied to property tax timing.
Why it matters: The clean audit gives council and residents assurance the city's FY 2024 financial statements present fairly and that auditors found no reportable problems with internal control or compliance for the year covered. The quarterly financial update highlights timing-related revenue volatility that staff said should normalize in the second quarter.
Council comments and next steps: Council members thanked finance staff and the auditor. The audit and the quarterly report were discussed publicly only; no formal council action was required or taken on the audit report.
