External auditor gives Harlingen clean opinion; finance department earns GFOA recognitions

Casco's & Associates presented the City of Harlingen's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended Sept. 30, 2024, and issued an unmodified (clean) audit opinion, the city's external auditor told the commission during the April 16 meeting.

Alfred Vera, managing CPA for Cascos & Associates, summarized the audit findings, management's discussion and analysis, and highlighted the city’s financial position. The auditor reported the general fund had total assets of $2,195,000, liabilities of $2,941,000, deferred inflows of $1,115,000 and total fund balances of $38,139,000 — of which $36,558,000 was unassigned. For the year, the general fund reported $62,153,000 in total revenues and $62,953,000 in total expenditures, with other financing sources of $1,450,000 and an overall net change in fund balance of $650,000.

Vera calculated an average daily operating cost of about $172,474 and said the city's unassigned fund balance equates to roughly 212 days of operations; Cascos & Associates typically recommends a 60–90 day range. The auditor also reported no findings in the independent auditor’s report on internal control and compliance (government auditing standards) and in the single-audit sections for major federal programs.

Separately, Robert Rodriguez of the finance department reported two Government Finance Officers Association recognitions: the Distinguished Budget Presentation Award for the current fiscal year (the department said it has received this budget award for 35 years) and the Certificate of Achievement for Excellence in Financial Reporting for the annual comprehensive financial report (the department said it has received the annual report award for 45 years). Rodriguez and commission members thanked the finance team for its work.

Why it matters

An unmodified audit opinion indicates the auditor found the city's financial statements to be fairly presented and free of material misstatement based on the procedures the auditor performed. The auditor’s reserves calculation (212 days) and the GFOA recognitions were presented to illustrate the city's reserve position and commitment to transparent budgeting and financial reporting.

Ending

Commissioners and staff thanked the audit team and finance department. The audit report will remain part of the city's public record; staff indicated they will continue to submit budget and financial reporting materials to maintain the awards and follow standard reporting schedules.