Auditors issue unmodified "clean" opinion on Missouri City FY2025 financial statements

The city's independent auditors, Whitley Penn, presented Missouri City’s fiscal year 2025 annual comprehensive financial report and said they issued an unmodified — commonly called a "clean" — opinion on the financial statements.

"And that is the opinion we've expressed on the city's financial statements. It's referred to as a clean opinion indicating that the city's financial statements are fairly stated in all material respects," said engagement partner Lupe Garcia. He told the council the audit process included testing internal controls, year‑end substantive procedures and federal single‑audit testing.

Garcia said auditors did not identify any material weaknesses, significant deficiencies or material noncompliance related to the financial statements. He also said the firm's federal single‑audit testing of the Coronavirus State and Local Fiscal Recovery Funds program found "no findings or questioned costs." The report lists total assets and deferred outflows of resources at $637,800,000 and a net position of $308,300,000 for FY2025.

Rhonda Smith, the city's chief financial officer, told council members staff cooperated fully with auditors and welcomed the report. "The good news is there are no financial issues and operationally...we did not have one," Smith said when summarizing the city's view of the audit.

The council did not take formal action on the report during the session; Garcia and Smith answered council questions and pointed to the published report for detailed schedules and combining statements.