City auditors report no material weaknesses; budget report shows modest variances

External auditors told the Durham City Council they completed the fiscal‑year 2024 financial audit and did not identify any material weaknesses or significant deficiencies; staff followed with a quarter‑one budget update projecting modest variances across multiple funds.

Carly (presenting for the audit firm) and Yamin Broadman, representing the city's external auditors, summarized the scope and findings of the Annual Comprehensive Financial Report for the year ending June 30, 2024. The auditors said they finalized testing on Oct. 23 and that they did not identify material weaknesses in internal control during their review. They noted that certain financial statement amounts (for example, pension and post‑employment benefit estimates) rely on management inputs and actuarial estimates.

Budget director Cristina Rierdon followed with a first‑quarter FY25 budget briefing. She said general fund revenues are tracking close to budget with timing differences in property tax receipts and that some enterprise funds (water, parking, transit) are projected to finish the year with favorable variances in revenue; staff vacancies were cited as a driver of personnel spending coming in below budget projections in the near term.

Council members asked clarifying questions about the treatment of compensated absences and the projected costs of proposed parking subsidy coupons; staff estimated the subsidy would require roughly $15,000 in additional general‑fund support if approved.

What happens next: The auditor's Annual Comprehensive Financial Report will be filed with the city and staff will continue to monitor the budget and return with mid‑year updates as needed.