Clute council accepts clean audit, authorizes same firm for next year

The Clute City Council on March 26 unanimously accepted the city—s annual financial report for the year ending Sept. 30, 2025, after auditors delivered an unmodified opinion on the financial statements.

Wade Whitlow, audit partner with the firm that conducted the review, told the council "we're issuing an unmodified opinion" and said the audit found no reportable deficiencies in internal control. Whitlow said the city's unassigned general fund balance was about $3,600,000, roughly three months of current-year general fund expenditures, and that total fund balance was closer to a six-month benchmark when nonspendable items are included.

"There—s room for improvement," Whitlow said, noting typical benchmarks for cities this size are closer to six months and that some reserve growth depends on FEMA reimbursements now in process. The council was told reimbursements tied to recent storm damage should bolster reserves once received.

After the presentation the council moved to adopt Resolution No. 14-2026 accepting the audit (motion by Councilman Aguilar; second by Councilman Culpepper) and voted unanimously to approve it.

The council also approved Resolution No. 15-2026, authorizing the mayor to sign an engagement letter with Kenmore Masters of Luford LLC to audit the city—s FY2025-26 financial statements. The motion to authorize the engagement passed unanimously.

The actions leave the city with an officially accepted audit on file and an auditor engaged for the coming fiscal year; council discussion noted ongoing attention to rebuilding reserves and the timing of FEMA reimbursements as key items to monitor.