Tomball council accepts FY2024 audited financials; auditor flags timeliness issue

The Tomball City Council on June 2 unanimously accepted the city’s Annual Comprehensive Financial Report and single audit for the fiscal year ending Sept. 30, 2024, after an external auditor told council leaders the financial statements received an "unmodified opinion," also described during the presentation as a "clean opinion."

Matthew Rogers, director with Weaver and Tidwell, told the council the audit included the ACFR and a single audit because "the city expended more than $750,000 this year in federal awards," and that the audit was conducted under GAAS and GAGAS and the Uniform Guidance (2 C.F.R. Part 200). He said auditors found no material weaknesses or instances of material noncompliance but identified one significant deficiency related to the timeliness of year‑end closing procedures. "There were certain things that weren't prepared timely," Rogers said, adding that staff turnover had reduced institutional knowledge and delayed issuance of the report, which auditors issued in May.

Why it matters: an unmodified opinion indicates the auditors found the financial statements presented fairly in all material respects. Council members pressed for clarification about the significance of the deficiency; Rogers explained it related to post‑close adjustments and reconciliations (for example, capital assets and some GL accounts) that delayed the audit process but did not indicate misstatement of cash or payables. Rogers also noted a prior material weakness tied to a cybersecurity incident has been remediated and was removed from the report this year.

Supporting details: Rogers highlighted that the city issued certificates of obligation totaling $27,600,000 during fiscal 2024, which increased long‑term debt. He also pointed to the general fund’s unassigned fund balance, which the presentation described as close to 97% of current‑year expenditures—roughly equivalent to about 12 months of expenditures—an indicator the city maintains a sizable reserves level.

Council action: a council member moved to accept the reports; another member seconded and the motion carried unanimously. No additional formal remedial action was adopted at the meeting; Rogers said remediation consists of staff continuity and maintaining a year‑end checklist to produce required deliverables in a timely manner.

The report and its footnotes (including a single prior‑period adjustment tied to the EDC component unit) are available in the audit packet provided to council. The acceptance means the audit will be posted as the city’s official FY2024 audited financial statements and single audit, with any follow‑up oversight to be considered during future budget and audit cycles.