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Keller receives unmodified audit opinion; auditors find no material weaknesses
Summary
City auditors presented FY2024 findings and issued an unmodified (clean) opinion on Keller—inancial statements; single-audit testing of federal programs found no instances of noncompliance.
Keller uditors told the City Council on March 18 that the city—arned an unmodified, or "clean," audit opinion for fiscal year 2024 and that the audit revealed no material weaknesses in internal controls.
"The city of Keller did receive an unmodified or a clean opinion for this year's financial statements," said Addison Ebarba, senior manager on the audit engagement, during the council udit presentation.
Nut graf: The audit firm also performed the federal Single Audit required when federal grant spending exceeds the threshold; auditors tested the American Rescue Plan Act (ARPA) fund and the highway planning and construction cluster as major programs and reported no instances of noncompliance or questioned costs. Council and staff said the clean report reflects steady internal controls and conservative budgeting.
What the auditors reported - Audit opinion: Unmodified (clean) opinion on the FY2024 financial statements. - Internal controls: No material weaknesses and no significant deficiencies reported for financial reporting. - Single audit: Major programs tested were the Coronavirus State and Local Fiscal Recovery Fund (ARPA) and the highway planning/construction cluster; both received unmodified opinions over compliance and no instances of noncompliance were reported. - Financial highlights shared by auditors and staff: Government-wide net position increased to $336,000,000 driven by capital asset capitalization and recent bond issuances; governmental-fund ending balances and enterprise-fund positions were presented with increases related to ongoing projects and financing activity.
Auditor—xplanation: Addison Ebarba outlined the audit process (planning, internal-control testing, substantive testing and issuance of opinions) and described significant audit risks the firm evaluates on every engagement, including management override of controls and improper revenue recognition. The auditors reported no disagreements with management and said adjustments identified during fieldwork were approved by management.
Council response: Councilmembers and the city manager thanked finance staff and auditors for the work. The council noted that the clean opinion is an affirmation of internal controls and budgeting practices, though staff said projects underway and debt issuances will affect fund balances in coming years.
Ending: The audit report was acknowledged on the record; staff will post the Comprehensive Annual Financial Report and follow up with the auditors' presentation materials previously reviewed in the work session.
