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Bulverde hires auditor to meet new state filing deadline after prior delays
Summary
Council approved an engagement letter with Armstrong Bond & Associates for the FY2025 audit and discussed Senate Bill 1851’s March 31 filing deadline after prior audit delays; staff and council agreed to seek RFQs for future audits while keeping the incumbent to meet the deadline.
Bulverde — The Bulverde City Council authorized the city to sign an engagement letter with Armstrong Bond & Associates, PC to perform the annual financial audit for the fiscal year ending Sept. 30, 2025, and discussed steps to ensure the audit is completed in time to meet a new state filing deadline.
City staff said the fee for the engagement increased roughly $500 (about 3.5%) over last year and noted a $3,800 single-audit fee would apply only if federal-aid thresholds are exceeded. Staff reiterated that Senate Bill 1851 requires cities to complete and file their financial audit by March 31 for the previous fiscal year; failure to do so can limit a city's allowable tax rate in the following year.
Council and staff reviewed recent audit timing problems. Staff described how the transition to new accounting software and staffing gaps had delayed reconciling fiscal-year books, with FY2023 completed late and FY2024 finished in January. "We had to go in transaction by transaction...and it took quite a lot to do," a staff member explained while describing the clean-up work needed before audit fieldwork.
Several council members urged starting fieldwork earlier than January to leave room to address any significant findings before the March 31 deadline. One council member suggested issuing an RFQ/RFP for future audit services to solicit qualifications and to include timing requirements in future solicitations; staff recommended keeping the incumbent for the current year to meet the imminent deadline and issuing a procurement process for the following years.
Council approved the engagement letter on a recorded motion and asked staff to provide background on the audit firm and the partner who will be assigned to the engagement. Staff said they would attempt to schedule fieldwork as early as December or January so that the audit report can be presented to council in March.
Next steps: staff will execute the engagement letter, attempt earlier fieldwork scheduling with the firm, and prepare an RFQ schedule for future audit services.
