Everman City Council audit: independent auditors issue unmodified opinion for FY2024

The Everman City Council heard that Patillo, Brown and Hill issued an unmodified (clean) audit opinion on the city's annual financial report for the fiscal year ended Sept. 30, 2024, the firm's audit supervisor said at the meeting.

Jacob Bowman, audit supervisor with Patillo, Brown and Hill, said, "Unmodified opinion, clean opinion." He told the council the term means there were no material misstatements in the financial statements and that the auditors found no significant fraud risk in the city's internal controls.

The report shows the city has a positive governmentwide net position of $4,900,000; Bowman noted that while the general fund carries an unrestricted deficit, that shortfall is offset by the city's net investment in capital assets. He also said the utility (business-type) fund produced positive operating cash flow and year-over-year net income and remained self-sustaining after transfers and capital spending.

Auditors confirmed major revenues, including sales and property taxes, with outside entities and tested material transactions such as payroll and capital expenditures. Bowman said the city did not surpass the federal single-audit threshold for FY2024 (the reporting threshold for federal expenditures), so auditors did not perform single-audit testing this year.

Bowman said the FY2024 audit contained no reportable findings, an improvement from the prior year when auditors reported a finding related to a prior-period restatement. He directed council members to the Management's Discussion and Analysis (MD&A) in the front of the report for a condensed executive summary of balance-sheet activity, capital assets and long-term debt.

Bowman closed by inviting questions and thanking city staff for their assistance with the audit.