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Council accepts annual financial audit for fiscal year ending June 30, 2024
Summary
Council voted unanimously to accept the city's annual financial audit for the period ending June 30, 2024. Council and staff discussed fund balances, a corrected journal entry for a vac trailer, and capital projects impacting fund balance.
Morgan City Council voted unanimously on Feb. 11 to accept the annual financial audit report for the period ending June 30, 2024.
Councilmembers reviewed highlights from the audit. A council member noted that enterprise funds (water, sewer, electric, sanitation) improved year over year: the electric fund moved from a deficit of about $538,000 two years earlier to a $293,000 surplus in the audited year, a shift staff attributed to a rate study and changes implemented after that study. The internal service fund showed an operating loss that staff explained was a timing issue tied to a vacuum trailer purchase: departments paid their proportional share, but the inter-fund journal entry posting occurred after the fiscal year closed, temporarily reflecting the purchase as an expense without corresponding intra-city revenue. Ty said the timing issue has been corrected in the current year.
Council members asked about capital projects that affected fund balances. Ty identified a public-works road project that reduced the capital projects fund balance from about $4.7 million to $3.3 million and confirmed that the department expects to continue managing capital spending while preserving adequate reserves. Several councilmembers commended staff for improved cash positions across enterprise funds and for following up on the auditor's comments. One councilmember asked why the auditors did not provide a small printed booklet this year as in prior years; staff said the hard copy was not provided despite prior practice, and they will request it for future meetings.
Votes at a glance: Motion to accept the annual financial audit report for the fiscal year ending June 30, 2024; outcome: approved (unanimous).
Implementation and follow-up: Staff will supply any requested audit exhibits and the hard-copy booklet for future meetings, ensure the vac trailer journal entries are recorded in the appropriate year going forward, and continue monitoring capital projects and fund balances as projects move forward.
