Council accepts city’s clean financial audit, auditor: 'unmodified opinion' with no adjustments

City auditors presented the City of Lubbock’s comprehensive annual financial report for the fiscal year ended Sept. 30, 2024, and the City Council unanimously accepted the report on Feb. 25.

Jennifer Rybka, partner at Weaver, the external audit firm, told the council the audit was conducted under generally accepted auditing standards and government auditing standards. “We have issued an unmodified opinion — that's a clean opinion,” Rybka said, and she added auditors found no uncorrected misstatements and proposed no audit adjustments.

City Manager Joe Jimenez and finance staff joined the presentation. Jimenez highlighted five-year trends in the general fund, noting revenues and expenses have risen in line with population and inflation and pointing to a 5-year average revenue growth of about 4.6% and expense growth of about 4.8%. He also said the city’s general reserve was healthy, at roughly $94.4 million and about 33.7% of the target policy level — above the 20% threshold the city uses for reserves.

Rybka identified the largest accounting estimates the auditors reviewed — pension and other post-employment benefits, and incurred-but-not-reported liabilities — and said the audit team considered management’s assumptions reasonable. She reported no suspected fraud and no difficulties that prevented completion of the audit.

Council members thanked auditors and staff. After a brief motion, the council accepted the ACFR by unanimous vote.

Actions recorded during this portion of the meeting included the staff presentation of the ACFR and a council vote to accept the report for the fiscal year ended Sept. 30, 2024.