Auditor gives Gunter unmodified FY23 opinion while council and public press for clearer finances after water-system sale to Mustang

An independent auditor told the Gunter City Council that the city’s fiscal year 2023 financial statements received an unmodified (clean) audit opinion, but the presentation prompted detailed questions from council members and residents about the city’s sale of its water and sewer system to Mustang and related long-term revenues.

The auditor, Austin Henderson of the audit firm (auditor), presented the FY23 report and described the accounting treatment of the October 2022 sale of the water/sewer system. Henderson said the city recognized a loss on sale after discounting the receivable and moving certain assets and liabilities to Mustang; he said the net effect left the city’s overall net position largely unchanged. "We did not find any outright fraud," Henderson told the council, but he also described a significant amount of work and correcting journal entries needed to reach the final statements.

The audit matters mattered to residents and council because…