Van Zandt County auditors give unmodified opinion; commissioners approve FY2024 report

The Van Zandt County Commissioners Court voted to accept the fiscal year 2024 audit after John Manning of Patillo, Brown & Hill LLP told the court the firm issued an unmodified opinion on the county's financial statements. Manning said the unmodified opinion indicates the auditors found the county's numbers and disclosures reliable and that the report did not require qualification or modification. The audit report matters because it is the primary external check of county financial reporting and grant compliance. Manning told the commissioners the consolidated statements showed the county would have a positive net position if it liquidated assets and paid liabilities. He singled out the county's pension position: "You guys actually have what we call a net pension asset to the tune of about 956,000," he said, noting most counties record net pension liabilities instead. At the fund level, Manning reported the county ended the year with about $27,000,000 of cash, roughly $1,300,000 of outstanding property taxes and about $1,800,000 in fines receivable. He also said the county was carrying a little over $4,000,000 of ARPA funds as a liability until those dollars are spent and recognized as revenue. The auditors performed a single-audit review because the county spent more than $750,000 of federal and state grant funds during the year. Manning said the tests of grant compliance and reporting produced no findings and revealed no internal control weaknesses. Commissioners asked questions about pension funding and audit procedures; Manning explained the net pension asset fluctuates with investment performance and voluntary employer contributions. When asked about the difference between a financial audit and a forensic audit, Manning said a forensic audit is a deeper look at specific transactions and is not the routine work performed in a county-wide annual audit. After discussion, the court moved, seconded and voted to approve and file the audit report presented by Patillo, Brown & Hill LLP. The court recorded no dissenting votes on the motion. The audit will be posted with other county records and used as part of the preparation for the next budget cycle.