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Independent audit delivers unmodified opinion for City of DeSoto; single‑audit coverage includes ARPA spending
Summary
Forvis Mazars issued an unmodified (clean) opinion on the City of DeSoto’s FY24 financial statements and found no material weaknesses, a city representative said March 17. The audit included a single audit of federal awards because the city spent ARPA funds; auditors reported no compliance findings. The city’s unassigned general-fund balance
An independent audit firm gave the City of DeSoto a clean opinion for fiscal year 2024 and reported no material weaknesses, auditors and staff told the City Council on March 17.
Assistant Finance Director Lakita Sutton introduced Josh Finlay of Forvis Mazars, the firm that conducted the FY24 audit. Finlay told the council the auditors issued an unmodified opinion on the basic financial statements — the highest standard of assurance — and that the city’s single audit of federal awards, required because of American Rescue Plan Act (ARPA) spending, produced no findings for noncompliance or internal‑control deficiencies.
Finlay summarized key figures from the audit: the city’s general‑fund fund balance as of Sept. 30, 2024, was just under $49 million. Compared to the adopted FY25 budget, Sutton and the auditors said the unassigned general‑fund balance represents roughly 76% of FY25 budgeted expenditures, the equivalent of about nine months of operating coverage — well above typical minimum benchmarks. The auditors also noted continuing qualifications: staff should monitor upcoming Governmental Accounting Standards Board (GASB) statements and maintain timely implementation of accounting standards.
Finlay and Sutton also highlighted recognition by the Government Finance Officers Association: DeSoto has repeatedly received the certificate of achievement for excellence in financial reporting, and staff expected to submit the FY24 documents for consideration.
The council’s audit committee reviewed the report earlier in March and recommended the council accept the audit. The audit materials will be placed on file as public record and posted on the city web site.
Speakers included Lakita Sutton, assistant finance director, and Josh Finlay of Forvis Mazars.
