Auditor gives unqualified opinion; council accepts annual financial report as part of consent agenda

Jacob Toomey of Armstrong Vaughn and Associates told the Hollywood Park City Council the firm issued an unqualified opinion on the city's financial statements for the year, meaning the auditors found no material exceptions.

"Just to be clear, the unqualified opinion is the 1 you want. It means there were no qualifications or exceptions to us saying that your financial statements were materially correct," Toomey said. He told the council the city's combined net position across governmental and business‑type activities was roughly $13.2 million, with about $12.9 million in governmental activities.

City Treasurer Fred summarized the city's recent cash and revenue position for the general fund. He reported December general fund revenues of $1,030,000 and expenses of $573,000 for net revenue of $457,000 for the month; he also reported property‑tax collections and transfers to short‑term investments. The treasurer reported combined cash accounts of about $7.95 million as of Dec. 31 and highlighted that interest income in Texas CLASS was earning 4.65% at the time of the report.

The auditors recommended keeping roughly six months of operating expenditures (about $3 million based on the auditors' estimate) in reserve, leaving approximately $2.5 million for special projects. Toomey also told council that most of the city's operating revenue comes from taxes (approximately 79% of day‑to‑day funding).

Council placed acceptance of the fiscal year 2023–24 annual financial report and the first‑quarter investment report on the consent agenda; the council approved the consent agenda by voice vote.