Live Oak approves annual comprehensive financial report after auditors give clean opinion

The Live Oak City Council voted Tuesday to accept the city’s annual comprehensive financial report for fiscal year 2024 after the auditing firm issued an unmodified opinion.

Finance staff presented highlights from the audit and the city’s year-end balances. Finance staff member Leroy Kowalik said the auditors issued an “unmodified opinion,” and staff reported no material misstatements or written findings.

Staff told the council the reported combined governmental fund balance was roughly $17.77 million and the general fund ending balance was roughly $14.14 million, a year-over-year decrease of about $435,000 that staff said resulted primarily from planned transfers to asset replacement and capital projects. The city reported it maintained approximately 11.5 months of operating expenditures in general fund reserves, near its 12‑month target.

Kowalik also reviewed the city’s pension funding ratio: 94.7% for FY2022, 81.9% for FY2023 and 86.52% for FY2024, figures staff said indicate roughly 86% of the pension’s actuarial requirement is funded. The council asked for additional detail on outstanding litigation referenced in the audit and on tax abatements; staff agreed to provide a list of litigation matters and further information about the historical tax abatements after the meeting.

Auditing firm Armstrong Vaughn and Associates has performed the city audit for four years of a five-year contract, the finance presentation said. Staff said if the city goes out for bids in the fifth year it would not preclude the current firm from rebidding, and the city would request a change of lead auditor if the firm is awarded a new contract.

A motion to accept the annual comprehensive financial report passed at the meeting.