Independent auditors give Georgetown an unmodified ACFR opinion, report one significant internal‑control deficiency

Auditors from Weaver issued an unmodified (clean) opinion on the City of Georgetown’s Annual Comprehensive Financial Report (ACFR) for the year ended Sept. 30, 2024, and presented the results to council at a workshop. The audit included a single‑audit report for federal funds compliance and concluded with no material misstatements left uncorrected.

Why it matters: An unmodified opinion means the auditors concluded the city’s financial statements are materially free of misstatement under U.S. generally accepted accounting principles. The ACFR gives the public a detailed, government‑wide view of the city’s finances and includes management’s discussion and analysis, fund schedules, and 10‑year statistical sections.

Key findings and adjustments: Auditors reported two corrected audit adjustments that were incorporated into the ACFR. One adjustment related to the recognition of certain developer contributions in the utility fund; auditors described this as an inadvertent miscommunication between departments and said the amounts will be recognized later when the related projects progress. The other adjustment was the recognition of a legal settlement liability in the water service area that was signed subsequent to year‑end but related to conditions existing before Sept. 30; auditors said the liability needed to be recorded in FY 2024 and the amount was reported confidentially.

Internal control: Weaver’s report on internal control and compliance included one significant deficiency tied to the journal entry recognizing the developer contributions in the utility projects. Auditors characterized the deficiency as significant (but not a material weakness) and said it reflected a control that did not operate as intended; they emphasized the item resulted from communication breakdowns rather than deliberate action. Auditors said they performed additional procedures in response to significant‑risk areas and noted no findings related to revenue recognition, custody of cash and investments, or long‑term debt disclosures.

Financial highlights presented by city staff included increases in sales tax collections (reported as $50.5 million, about 6% over the prior year), higher interest and investment income reported by staff ($49.3 million cited as a year‑over‑year gain figure in the presentation), growth in charges for services in enterprise funds tied to water/wastewater rate changes and large electric customers, and an increase in governmental expenses driven by inflation, pay increases, new positions and capital spending.

Council reaction and next steps: Council thanked city finance staff and the audit team for the comprehensive report and for catching the developer‑contribution timing issue. Auditors and staff said management had adjusted the statements and that staff will continue to tighten interdepartmental communication and controls around project accounting. No formal council action was taken at the workshop; the audit report and ACFR will be part of the city’s financial record and public disclosure.

Speakers quoted in this article include the city controller and the lead audit partner from Weaver, who presented the audit results at the council workshop.