Title
Consider approving Resolution No. 2024-044 adopting the Annual Comprehensive Financial Report for the fiscal year ending September 30, 2023, as submitted by FORVIS, LLP; and take appropriate action.
Body
BACKGROUND:
The City received an Unqualified Audit “clean” Opinion. A clean opinion is when auditors find that the statements are presented fairly and consistent with accounting principles. This is the best opinion outcome for audits.
The City Charter requires a complete report on the finances and administrative activities of the City for the preceding year by an independent Certified Public Accountant. Such a report must currently be prepared and submitted to the City Council within 120 days of the end of the fiscal year.
DISCUSSION:
The audit for the year ending September 30, 2023, was prepared and submitted to the City Council prior to tonight’s meeting in compliance with the City Charter provisions. The City Charter also requires a City Manager’s report within ninety (90) days after the audit report submission outlining actions to be taken on any auditor recommendations, if necessary.
Once finalized, copies of the annual financial report will be available at the Farmers Branch Manske Library and on the City’s website.
The ACFR (attachment 4) has a draft statistical section starting on page 89, which is unaudited and has formatting and a number of link errors that will be fixed in the final draft. These do not impact the overall audit.
FISCAL IMPACT:
Budgeted Financial Impact: The Finance Administration budget includes $128,500 for the audit ending September 30, 2023, plus implementation of new Governmental Accounting Standards Board (GASB) pronouncements, an Annual Financial Assurance to Texas Commission on Environmental Quality (TCEW), and performing a single audit for grants, if necessary or applicable.
DISTRICT:
All
RECOMMENDATION:
City Administration recommends approving Resolution No. 2024-044 as presented.
POSSIBLE COUNCIL ACTION:
1. I move to approve Resolution No. 2024-044 as presented.
2. I move to approve Resolution No. 2024-044, with modifications.
ATTACHMENTS:
1. Resolution No. 2024-044
2. Auditors FORVIS City Council Presentation FY23
3. Single Audit (grants) draft FY23
4. Annual Comprehensive Financial Report (ACFR) draft FY23