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Independent audit: Lockhart posts unmodified opinion, general fund reserves rise to 73% of expenditures
Summary
Brooks Watson and Company issued an unmodified (clean) opinion on the City of Lockhart’s FY 2024 annual comprehensive financial report; the city’s unassigned general fund balance rose to approximately $11 million (about 73% of general fund expenditures).
An independent audit by Brooks Watson and Company produced an unmodified (clean) opinion on the City of Lockhart’s fiscal year‑ending 2024 annual comprehensive financial report, the council heard. The auditors and city finance staff presented highlights, including growth in reserves and selected fund performance.
Finance Director Keeley (first name not specified in the record) told council that the city’s Home Rule Charter requires an annual audit and noted Brooks Watson and Company is on year four of its engagement. Auditor Mike Brooks summarized the audit process and presented key figures: total assets exceeded total liabilities by about $69.8 million, governmental funds had a combined ending fund balance of roughly $22.2 million, and the city’s unassigned general fund balance was about $11 million—equal to roughly 73% of annual general fund expenditures.
Brooks said the city’s governmental activities revenues totaled about $16.8 million (a reported decrease of $5.0 million from the prior year) and attributed the largest revenue drop to capital contributions that were unusually high the prior year. Public safety remained the city’s largest expense function at about $6.6 million.
The auditors also reported on proprietary funds: the electric fund had a net decrease (about $394,000), the water fund had a small net increase ($23,000) and the wastewater fund showed a net increase (about $1.9 million). Brooks said the city complied with the Texas Public Funds Investment Act and that Brooks Watson will submit the report to the GFOA for an award; the city has already received five consecutive Certificates of Achievement for Excellence in Financial Reporting and staff expects the sixth.
Council accepted the report by a 7–0 vote.
Why it matters: The audit’s clean opinion and sizable reserves affect the city’s financial flexibility for capital projects and borrowing capacity and inform budget planning.
Votes at a glance
- Acceptance/presentation of FY2024 annual comprehensive financial report: accepted 7–0.
