SB&G certified public accountants presented Socorro's fiscal year 2024 annual financial report July 3 and reported an unmodified (clean) audit opinion and no findings on federal award compliance, including ARPA, the auditor told council.

The auditor, Theo Cabrera, summarized highlights for the general fund and capital improvement funds: general fund revenues exceeded budgeted estimates and the city closed the year with a positive general fund balance and healthy reserves. However, Cabrera told council the capital improvement fund had been substantially expended due to several large TxDOT‑funded projects (including Arterial 1 and the Nuevo Hueco Tanks expansion) and that the general fund had advanced approximately $1.2 million to cover capital cash‑flow timing while awaiting TxDOT reimbursements.

Cabrera said the audit was completed within the nine‑month filing window, that the audit found no fraud or abuse requiring reporting, and that prior year findings (timely completion, ARPA accounting and TxDOT accounting items) were resolved. He recommended that staff monitor interfund borrowings, complete subrecipient monitoring for ARPA subawards, update the investment policy to reflect current practice, provide additional training on fixed‑asset accounting and consider raising the capitalization threshold from $5,000 to $10,000.

Council action: Council voted to accept and issue the FY2024 annual financial report as presented by SB&G. The auditor's presentation and council discussion highlighted the need to manage capital project cash flow and ensure prompt reimbursements from TxDOT and other grantors.

What was not decided: The audit presentation included recommendations but no formal policy changes were adopted at that meeting; the auditor suggested several administrative actions for staff to implement and report back.