MDD board approves clean audit, reviews quarterly finances
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Summary
The Fair Oaks Ranch Municipal Development District board heard a quarterly finance report showing steady collections and investment balances, and unanimously approved Brooks Watson & Companys clean FY2025 audit at its Jan. 14 meeting.
The Fair Oaks Ranch Municipal Development District (MDD) Board of Directors on Jan. 14 reviewed its quarterly financial and investment report and voted to accept the independent audit for the fiscal year ended Sept. 30, 2025.
Summer, the districts finance presenter, told the board that sales tax collections for the quarter included $46,000 for October and an accrued $105,000 covering November and December, and that interest earnings for the quarter totaled $38,501. Year-to-date expenditures were $36,846, driven mainly by the annual management fee and audit costs. Summer said the districts investments totaled about $3.8 million, held in local government investment pools (TexPool and Texas CLASS), with an operating account balance of roughly $39,000 at Frost Bank. Based on current activity and higher-than-budgeted interest earnings, she said the projected ending fund balance is about $4.4 million for the fiscal year.
Summer also summarized the independent annual audit completed by Brooks Watson and Company. "I am pleased to report that the district received a clean audit opinion," she said, noting there were no audit findings, no material weaknesses, and no instances of noncompliance reported. The audit materials in the board packet showed total assets of about $4.0 million and total liabilities of roughly $226,000 (a payable to the city related to the Gateway Monument grant), producing a net position near $3.76 million. Total revenues for the year were reported at about $700,000 and total expenses about $268,000, leaving an increase in net position of approximately $432,000 for the fiscal year.
President Laura Kerner asked for a motion to accept the audit report "as presented." A board member moved, another board member seconded, and the board approved the audit and closed the item on a voice vote.
The board also approved the consent agenda minutes earlier in the meeting. No audit-related follow-up was identified on the record; staff said the auditor would be available for any later questions.
Next steps noted at the meeting: staff will continue monthly monitoring of sales-tax receipts and investment performance and will provide updates as needed to the board.
