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City receives clean annual audit; Deloitte closes CDBG‑DR after decade‑long program
Summary
External auditors issued an unmodified opinion on the city’s FY2024 financial statements; Deloitte presented a final closeout and risk assessment for the Community Development Block Grant—Disaster Recovery (CDBG‑DR) program and noted most audit observations had been resolved.
SAN MARCOS, Texas — San Marcos received a clean, unmodified audit opinion for its fiscal year ending Sept. 30, 2024, and Deloitte presented final internal audit and closeout work on the city’s Community Development Block Grant—Disaster Recovery (CDBG‑DR) program.
Annual audit: Jeremy Barbato of ABIPP delivered highlights from the FY2024 annual comprehensive financial report. The independent audit firm issued an unmodified (clean) opinion on the city’s government‑wide financial statements and major funds. John Locke, the city’s finance director, told council the general fund’s total fund balance was about $43.8 million at year end, with $17.8 million unassigned — roughly two and a half months of operating reserves plus an additional contingency reserve that totalled about five and a half months of operating reserves overall.
Major program single‑audit: Auditor ABIPP also performed the single‑audit under OMB Uniform Guidance for the city’s significant federal awards (including WIC and ARP funds) and reported no compliance findings or questioned costs for the major programs audited.
CDBG‑DR closeout: Deloitte managers presented the joint Q1/Q4 internal audit report and a final risk assessment and closeout report covering the city’s CDBG‑Disaster Recovery funds tied to the 2015 flooding. Deloitte reported improved risk ratings across procurement, drawdown, audit readiness, monitoring and closeout refinement; one closeout observation remained for Blanco Gardens because work for that site was funded through an overlapping mitigation grant whose final invoice and certificate of completion had not yet been available at the time of the report. City engineering confirmed Blanco Gardens is complete and a certificate of acceptance has been issued, Deloitte said.
Quarterly financials and investments: Staff presented the quarter ending Dec. 31, 2024 financial report and an investment report. Highlights included improved sales tax receipts (a positive year‑over‑year fourth quarter), strong utility fund positions (electric and water/wastewater net positions up), and an ending city portfolio of about $401 million as of Dec. 31, 2024. The portfolio shift reflected maturities/calls of federal agency securities and temporary placement into money‑market accounts while reinvestment occurs.
Why it matters: The clean audit and wrap‑up of the CDBG‑DR closeout mark important fiscal milestones. Council members noted the long timeline of disaster recovery work stemming from the 2015 flood and thanked finance and programs staff for completing the final steps.
Votes and motions: The auditors’ presentations were received by council; no controversial findings were reported. Council thanked staff and auditors and moved on to other agenda items.
