Auditors give Rowlett an unmodified opinion; first-quarter budget shows modest revenue gains

Weaver auditors presented the city’s independent audit for the fiscal year ending Sept. 30, 2025, and issued an unmodified opinion — the highest level of assurance — finding no material weaknesses, no significant deficiencies and no independence issues.

Claire Wootton, director with Weaver, told the council the audit identified the city’s significant risk as improper revenue recognition and said auditors tested revenue, internal controls and account estimates (pensions, OPEB and workers’ compensation) without finding misstatements or suspected fraud. "Unmodified is the cleanest you can get," Wootton said.

Following the audit read-in, Director of Finance Wendy Badgett presented a budget update covering the period ending Dec. 31, 2025. Key figures she reported: $62,000,000 in revenue for the first quarter (roughly 40% of a $156,000,000 annual budget), expenses of $31,000,000 (20% of budget), and general‑fund revenues about $2,300,000 above the first‑quarter forecast. Property tax collections accounted for $26,000,000 and represented roughly 60% of general‑fund revenue.

Badgett noted utility fund variances: water revenues were about $90,000 (2%) below forecast while sewer was $54,000 (1%) above forecast; the debt service fund incurred $10,000 more expense related to attorney fees for property value protests but was offset by property tax revenues. She said the city’s auditors did not identify material issues in the audit and that federal single‑audit thresholds were not triggered for FY2025.

Council members thanked staff for the thorough reporting and asked follow‑up questions about internal controls and the city’s financial planning. The presentations were informational and did not require immediate council action.