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City auditors issue clean opinion for FY2025; identify timing issue on $3.4 million in grant revenue
Summary
Weaver & Tidwell presented a clean (unmodified) audit opinion for Lewisville's FY2025 financial statements but reported a significant deficiency tied to the timing of roughly $3.4 million in construction-related grant revenue; staff has proposed a corrective action plan.
Lewisville's independent auditor told the City Council that the city's fiscal year 2025 financial statements received an unmodified (clean) opinion but that one significant internal-control deficiency related to the timing of grant revenue recognition needs attention.
John, a partner with the audit firm Weaver & Tidwell, said the audit team issued a clean independent auditors' report on March 24, 2026, and performed single-audit testing for federal and state programs. He said the auditors found no indications of fraud and no issues in the compliance testing for major federal and state programs, including ARPA-related funds and regional transportation grants.
The auditor identified a control deficiency stemming from the timing of revenue recognition for approximately $3.4 million in construction invoices that were accrued back to FY2024 but were not recognized as revenue until FY2025 because of advance-funding mechanics. "It was nothing to do with cash or any kind of improprieties," John said, describing the issue as a timing matter and a control deficiency rather than a material misstatement. He said staff prepared a corrective action plan that auditors believe will remedy the issue.
Beyond that finding, the presentation highlighted the city's financial position: governmental funds revenues totaled $233.7 million in FY2025 (an 8% decrease from the prior year), the general fund's unassigned fund balance was reported at about $45 million (roughly 36% of general fund expenditures), and the city's total net position was about $1.1 billion. The auditor said capital-project timing drove most of the year-over-year changes in expenditures and fund balances.
Council members and staff noted the city's strong reserves and the value of the clean opinion when the city accesses bond markets. The auditor also summarized budget-to-actual variances: revenues exceeded the budget by roughly $400,000, expenditures were about $1.3 million under budget, and other financing sources were below budget by about $1.7 million.
The council accepted the presentation and moved on to other agenda items. The audit partner invited questions and confirmed the corrective-action steps proposed by staff to address the timing deficiency.
