External auditors issue unmodified opinion for FY2024; council accepts audit and authorizes engagement letter for 2025

The city's external auditors presented the fiscal year 2024 annual comprehensive financial report and federal single-audit results and reported an unmodified opinion Monday night.

Lupe Garcia, partner at Whitley Penn LLP, told the council the audit found the financial statements are fairly stated in all material respects and that auditors identified no material weaknesses or significant deficiencies in internal control. Garcia said the city had $1.1 million in expenditures under the Coronavirus State and Local Fiscal Recovery Fund during fiscal 2024 and auditors found no material noncompliance related to that program.

“The opinion on the financial statements is an unmodified opinion,” Garcia said. She reported governmental net assets, fund balances and that the general fund ended fiscal 2024 with an unassigned fund balance representing about 67.1% of general fund expenditures.

After the presentation, Council member Robertson moved to accept the audit; Mayor Pro Tem Chris Harris seconded and the motion carried by voice vote. The council also approved a resolution authorizing the mayor to sign an engagement letter with Whitley Penn LLP for the fiscal year ending Sept. 30, 2025; that resolution passed on a motion by Council member Janet Court, seconded by Council member Gina Hicks.

Why it matters: An unmodified opinion indicates the city’s audited financial statements conform to generally accepted accounting principles and that auditors did not identify material control or compliance problems in FY2024.

What’s next: The city will continue the annual audit relationship with Whitley Penn under the newly approved engagement letter for FY2025.