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Clute council accepts independent audit giving city a clean opinion for fiscal year ending Sept. 30, 2024
Summary
The City Council unanimously accepted the fiscal year 2023–24 audit and certified annual financial report prepared by Kenmore Masters and Mossberg LLC; auditors issued an unmodified opinion and found no internal-control deficiencies.
The City Council unanimously adopted Resolution O8-2025 to accept the City of Clute’s fiscal year 2023–24 audit and certified annual financial report prepared by Kenmore Masters and Mossberg LLC.
Wade Whitlow, audit partner with the firm, told council the audit process began in the summer and culminated in a clean, unmodified opinion on the city’s financial statements. Whitlow said the firm did not identify deficiencies in the city’s internal control over financial reporting and had no significant audit matters to report in the required communication to the mayor and council.
Whitlow highlighted a few financial items for council attention. He said the city’s unassigned general-fund balance equates to roughly three months of expenditures after hurricane-related cleanup costs, below the commonly recommended six-to-nine months. He said FEMA assistance is pending and that the city should continue rebuilding reserves while awaiting reimbursement. Whitlow also noted the Mosquito Festival fund ran a deficit late in the fiscal year tied to Hurricane Beryl.
Councilmember Nicole Maddox asked about miscellaneous revenue components on page 18 of the report; finance staff explained those line items can include unanticipated grant revenue, sale of surplus items, and cash donations. City staff and auditors said budget-to-actual comparisons did not reveal appropriation overruns and that the debt-service fund’s earlier deficit had been addressed prior to the hurricane-related expense spikes.
After the presentation, Councilmember Calvin Shiflett moved and Councilmember Nicole Maddox seconded acceptance of Resolution O8-2025. The motion passed unanimously on a voice vote. The council’s affirmative vote was recorded as unanimous; no individual roll-call vote was recorded in the minutes.
The audit and its letters will be available with the city’s financial records as required by state law; staff said they will continue monitoring reserve levels and FEMA reimbursement timing.
