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Shenandoah receives clean audit for 2024; council approves annual financial report
Summary
Auditors from Brooks Watson issued an unmodified (clean) opinion on Shenandoah’s 2024 annual comprehensive financial report. Council approved the report after a presentation that highlighted healthy reserves, a $432,000 positive budget variance and strong utility fund results.
Louis Breedlove, senior audit manager at Brooks Watson, told the Shenandoah City Council on Monday that the firm issued an unmodified — or "clean" — opinion on the city’s 2024 annual comprehensive financial report. "I'm happy to report the city did get a clean report," Breedlove said during a presentation that walked council through the audit process, testing approach and required communications to governance.
Breedlove said auditors used a risk‑based approach and compliance testing and that the city’s controls, checks and balances were sound. He reported no federal findings related to this year’s single audit, which was triggered by federal ARPA expenditures exceeding the single‑audit threshold; he noted the federal threshold is moving from $750,000 to $1,000,000 next year.
The presentation included several fiscal highlights: the general fund balance declined about $157,000 in 2024 consistent with budgeted use but stood at roughly 88% of the policy target (the city’s policy is 180 days or 50%); the hotel occupancy fund rose by about $551,000; and the overall budget showed a positive variance of $432,000. The water/sewer enterprise fund reported operating income of just over $1,000,000 and a net position increase driven largely by capital transfers.
Council members asked whether pending legislation at the state level could change reporting requirements; Breedlove said it was too early to predict outcomes. He also explained that GASB guidance (noted in the presentation as GASB 101) will change how sick‑leave liabilities are recorded going forward.
After the presentation, Councilman Raymaker moved to approve the 2024 annual comprehensive financial report; Councilman Summerlin seconded the motion. The council voted in favor and the presiding official declared the motion carried.
The audit letter, management discussion and statistics remain part of the report packet available to the public for more detailed year‑to‑year analysis.
