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Mission council accepts fiscal 2023 audit after auditors report no modified opinion
Summary
Auditors told the council the citys financial statements for the year ended Sept. 30, 2023, are fairly stated in their opinion; the council voted 4-1 to accept the comprehensive annual financial report.
Mission City Council on Monday accepted the City—s annual comprehensive financial report for the fiscal year ended Sept. 30, 2023, after a presentation by auditors from Carr, Riggs & Ingram.
Auditors Esmeralda Yindiguez and Chad Young told the council their independent auditor's report gave a non-modified opinion, meaning "in our opinion, the financial statements as presented, are fairly stated, in all material respects," Yindiguez said during the presentation.
The audit team said the city restated beginning fund balances to implement GASB 96 (subscription-based information technology arrangements) and made various adjustments related to prior-period errors; those changes did not change the auditors' overall opinion. Chad Young summarized key figures: general fund revenues were about $51.5 million with expenses about $51.3 million, producing a positive change in fund balance; the combined enterprise funds (primarily the utility fund) showed higher operating revenues driven by a February 2023 rate increase and higher capital contributions year over year.
The auditors also reported the city is subject to a single-audit requirement for federal awards and identified the Coronavirus State and Local Fiscal Recovery Funds as the major federal program tested. The auditors said they issued a non-modified opinion on federal program compliance with no material weaknesses, no significant deficiencies and no reportable noncompliance for the major program.
Councilmembers asked about internal controls and timing of detailed review. Mayor Pro Tem Rubin Plata said he was not comfortable voting to accept the report without additional review; Plata cast the lone dissent. Councilmember comments and the audit committee—s prior two-hour review were cited by staff as part of the record.
There was discussion of the city's minimum fund balance policy: auditors reported the city did not meet its two-month minimum and was short by about $1.4 million based on the city—s policy calculation. Auditors noted the increase in tax revenue tied to property valuation growth and transfers from the utility fund as primary drivers of the improved general fund balance.
The council voted 4-1 to accept and file the audit (Mayor Nori Garza, Councilwoman Jessica Otero, Councilwoman Marissa Garza and Councilman Alberto Vela in favor; Mayor Pro Tem Rubin Plata opposed).
