Lampasas auditor issues unmodified opinion on FY2024 report; council to accept at next meeting

Nate White, a shareholder partner with Singleton Clark, told the Lampasas City Council on April 8 that the firm issued an unmodified auditors’ opinion on the city’s fiscal year 2024 financial statements and found no material weaknesses, significant deficiencies or material noncompliance.

White said the report shows the city’s general fund ended FY2024 with $4,705,229 in fund balance — roughly 4.8 months of noncapital expenditures — and that the electric and water/wastewater proprietary funds changed net position in opposite directions: the electric fund added about $1.40 million to end at $7,431,645 while the water/wastewater fund declined $896,364 to $10,598,262. He identified the city’s coronavirus state and local fiscal recovery fund (CSLFRF) as a major fund for FY2024 and reported $447,697 was added to that fund’s balance in the year; as of Sept. 30, 2024 the CSLFRF cash balance was about $813,000 and $612,000 of that appeared as unavailable or unearned revenue.

“We have section 1, the summary of auditor's results. The type of auditors report issued is unmodified,” White said, noting that an unmodified opinion means the auditors believe the financial statements are free from material misstatement. He also described a recently implemented Governmental Accounting Standards Board (GASB) standard reflected in note O of the report and said that presentation changes related to that standard and to the CSLFRF may be more visible on next year’s statements as the federal recovery fund winds down.

Council members asked whether the approximately $89,000 of interest earned on the CSLFRF deposit would remain available to the city or be returned to the federal government; White said the answer depends on the awarding agency and could go either way and that the city should have a determination during the current fiscal year. He also noted the city did not require a single audit for FY2024 because federal expenditures did not exceed the Common Rule threshold cited in the report.

No formal vote was taken on the audit at the April 8 meeting; White told council members they will be asked to accept the audit report at the next regular council meeting.

The presentation included a statistical section and detail on proprietary funds, governmental fund revenues and expenditures, and capital project reporting. White invited council questions and said staff and the auditors can provide additional detail if requested at the follow-up meeting where the council will be asked to accept the audit.