Brookshire finance staff report revenue shortfall and multi-year audit backlog; $48,000 reimbursement at risk

City finance staff told the Brookshire City Council on Nov. 6 that actual year-to-date revenue is materially lower than the figure used in prior budget documents and that outstanding audits are preventing grant reconciliation.

Finance staff reported a year-to-date actual revenue figure of about $10.7 million compared with roughly $15 million cited in the previous administration’s budget documents. "That budget was overstated," staff said during the presentation, and they noted the city had verified revenue figures with third-party tax and property vendors.

Council also heard that the city’s financial audits are behind for fiscal years 2022, 2023 and 2024. Staff said the delay prevents the completion of a required single-audit tied to a downtown revitalization grant awarded in 2022. As a result, roughly $48,000 in reimbursements the city expects cannot be secured until the audits are current. Staff said they have provided about 98 percent of requested items to auditors and urged the audit firm, Baker Tilly, to prioritize completion.

City staff also reported an ongoing bank consolidation with Wells Fargo accounts being closed and work to finish transitioning to a single bank. No formal budget amendments or grant changes were approved at the meeting; staff said they are continuing to work with auditors and external vendors and will return with updates.

The council did not vote to change the budget at this meeting; staff framed the presentation as an explanatory, year-end review and an audit-status update.