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Corcoran’s auditor: preliminary Q4 shows about $200,000 surplus; city told figures are unaudited
Summary
Abdo Financial Solutions presented Corcoran’s first quarterly financial report showing a preliminary $200,000 surplus for 2024, higher interest earnings from bond proceeds and recommendations to formalize an investment strategy and maintain OSA-recommended reserves.
Vicky Holtos, a presenter with Abdo Financial Solutions, told the Corcoran City Council that the city’s preliminary 2024 financial results show about $200,000 more in revenues than expenditures but cautioned the figures are not audited.
Holtos said, “these quarterly financial reports that we'll be producing for you are not audited,” and that the firm conducts a robust review and will post year-end adjustments for claims and receivables as they close the books.
The report — presented to the mayor and council as Corcoran’s first quarterly summary from Abdo — highlighted the city’s seasonal cash pattern and recommended adherence to guidance from the Office of the State Auditor that general fund reserves be maintained at roughly 35 to 50 percent of annual expenditures. Keisha Ganske, senior manager with Abdo Financial Solutions, introduced the firm and explained the preliminary status of the figures.
On the revenue side, the auditors noted licenses and permit receipts came in above budget and boosted the general fund. On the expense side, Holtos said the city recorded higher accounting and HR costs related to consultant support for AppGo and payroll functions. The engineering fund produced a positive budget variance because several positions remained vacant during 2024.
Abdo walked the council through the cash-by-fund report and enterprise funds. Holtos said the pavement management, Horseshoe Bend and City Center funds fell as planned because of roads work, and the water fund showed higher interest earnings tied to bond proceeds while debt service rose as new bonds came online.
Councilmember Jeremy asked about the city’s method for allocating interest earnings. City staff described the current practice as a monthly snapshot allocation across funds on a pro rata basis, with interest on bond proceeds accounted for separately. Holtos and staff said they plan to bring a formal investment strategy for council consideration in the spring to help the city capture higher yields; council members noted some money-market and 4M fund yields in the packet differed materially.
Holtos and Ganske closed by saying the city should expect quarterly updates and that Abdo will finalize year-end adjustments over the coming weeks.
The presentation generated questions but no formal action; the council received the report and requested a future discussion of an investment strategy and how interest is allocated.
