Callahan County accepts clean audit; auditor flags reconciliation weakness for road and bridge equipment loans

Callahan County commissioners accepted an audit report Feb. 9 in which the external auditor issued a clean opinion on the county's modified cash‑basis financial statements but disclosed one material internal control weakness.

"You received a clean opinion," auditor Robertson McGee told the court and noted the financial statements "present fairly in all material respects...Callahan County, Texas as of 09/30/2025" on a modified cash basis. McGee summarized key figures: total assets and deferred outflows of resources of about $47,000,000, liabilities of roughly $17,000,000 and a net position about $30,000,000. He said the county's change in net position was about $5,500,000 for the year and the general fund finished the year about $3,200,000 over budgeted revenues/under expenses due largely to capital outlay variances.

McGee also reported a material weakness in internal control relating to some road and bridge equipment loans: when loans are arranged and equipment turned over before payments begin, the debt was not always recorded promptly on the balance sheet. He recommended stronger reconciliation processes so such debt is captured timely at fiscal year end.

The court moved and seconded acceptance of the audit report and recorded the approval. Commissioners also received an update from the facilities committee that punch‑list work on the courthouse restoration and annex project is ongoing, with furniture delivery and move‑in planned next Monday. A fee proposal from architect Ramirez Zapata was discussed but staff said a final review by legal and staff (Jim Allison) is pending, so no architect‑fee approval occurred at the meeting.

The sheriff also reported routine operational figures (dispatch overtime 10 hours, deputies 4 hours and an inmate population of 26). The court approved the sheriff's report by motion.