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City auditors recommend restatement of 2023 SEFA; Ennis airport fund ran operating losses in 2023–24
Summary
Audit partner Rachel Ormsby presented Fortis Mazars Group's single-audit findings, explaining a restatement to the FY2023 SEFA that increased reported provider-relief fund expenditures from about $70,857 to $2.1 million; auditors also reported airport fund operating losses in both FY2023 and FY2024 and recommended management review of revenue strategies.
City auditors on Sept. 2 told the Ennis City Commission that a reporting issue required restating the FY2023 Schedule of Expenditures of Federal Awards (SEFA) but did not result in compliance findings.
Rachel Ormsby, audit partner at Fortis Mazars Group, said the originally issued FY2023 single audit understated provider-relief expenditures at about $70,857; a follow-up review identified that the program should have been reported at roughly $2.1 million. Ormsby stressed that the restatement related to SEFA preparation and reporting periods, not to misuse of funds: "It was really just a reporting issue and not a compliance issue and not an allowable cost issue," she said.
Tom, a manager on the engagement, added that the restatement was an isolated incident that reflected evolving federal guidance around reporting periods for provider‑relief and other COVID-era funding. The auditors said they would work with city staff on corrective actions and refile the corrected reports with the federal audit clearinghouse within the required 30 days.
The audit presentation also highlighted the airport fund's recent operating performance. Ormsby and Tom reported that the airport fund had operating losses in both FY2023 and FY2024, with a short-term working capital loan (recorded as a "due to other funds") from the general fund to cover negative operating cash. They noted operating revenues below operating expenses in both years and suggested staff consider revenue-side options such as price/markup adjustments and creating an airport manager position to monitor market rates.
"Smaller airports such as ours often do not run a profit unless there is real air traffic," a staff member said during discussion; the presentation recommended a closer look at fuel pricing, FBO arrangements, and whether a dedicated airport manager should be included in the budget.
The commission received the audit reports and had no further action other than to direct staff to work with the auditors to resubmit corrected SEFA documents and to examine airport‑fund revenue and expense management.
