Audit committee reviews Fort Smith 2024 ACFR, auditors issue clean opinions

The Fort Smith Audit Committee met to review the City of Fort Smith’s 2024 Annual Comprehensive Financial Report (ACFR) and hear the external auditors’ required communications. Committee Chair Dina Enfield opened the meeting and turned the presentation over to Andy, who summarized the citywide financial results, and to auditors David Coleman and Katie Flores, who described the audit opinion and major federal grant work.

The ACFR shows an increase in government-wide net position from about $521 million at the end of 2023 to about $564 million at the end of 2024, driven largely by capital investments and growing restricted balances tied to sales-tax receipts collected under a consent decree. Andy told the committee the “increase in net investment in the governmental side represents continued infrastructure improvements,” citing completed street construction and several land purchases during 2024.

Auditors said they will issue unmodified (clean) opinions. Audit partner David Coleman told the committee the audit team identified “no material weaknesses or significant deficiencies” in internal control over financial reporting and will issue an unmodified opinion on compliance for major federal programs. Audit manager Katie Flores summarized auditor responsibilities, saying auditors “provide an opinion on whether your financial statements are fairly stated in all material respects.”

Why it matters: the city’s financial position showed improvement on several consolidated measures even as some operating deficits narrowed and long-term pension obligations remained material. The committee discussed implications for budgeting, debt, and grant oversight.

Key finan…