Council accepts 2023-24 financial audit, auditors find compliance on pandemic funds

The Lucas City Council voted March 6 to accept the City of Lucas Annual Comprehensive Financial Report for fiscal year 2023-24 and to accept the auditors' alternative compliance examination of Coronavirus State and Local Fiscal Recovery Funds (CSLFRF).

Susan of Veil and Park, the audit principal, told the council the independent auditor's report was clean and unmodified and that there were no material weaknesses identified in internal control. "It's unmodified, all standard language, clean report, everything that you would want," she said. The audit showed government-wide net position of $91,116,385 and an increase in net position of about $8.5 million (roughly 10%) for the year.

Auditors also presented fund-level details, saying the city's unrestricted net position was $25,617,597 and that general fund balances provided approximately 13.6 months of reserve, above typical 3-to-6-month norms. They noted governmental activities revenue was about $12.6 million, an increase of roughly $478,000 (3.9%), driven largely by a 9% rise in property tax revenue.

On the CSLFRF funds, auditors reported they had performed an alternative compliance examination in lieu of a single audit and concluded the city "complied in all material respects with those requirements" for allowed activities, allowable costs and cost principles. Council members confirmed the CSLFRF dollars were spent largely on a water-tower project and that the funds for that program are now expended.

Councilmember Debbie Fisher moved to accept the ACFR and the alternative compliance exam; the motion was seconded and approved by voice vote. Chair then thanked staff for closing the books and for preparing the report.