Title
Consideration of and action on authorization to accept the Fiscal Year 2019-2020 Annual Audit.
Body
Summary: Pursuant to state statute and City ordinance, the City shall have its records and accounts audited annually and shall prepare an annual financial statement and report. The audit shall be performed by a certified public accounting (CPA) firm, licensed to practice in the State of Texas. The annual financial statement and report, including the auditor's opinion, shall be part of an official Comprehensive Annual Financial Report, which shall be filed within 180 days after the last day of the City's fiscal year.
For Fiscal Year 2019-2020 (October 1, 2019 - September 30, 2020), the Comprehensive Annual Financial Report must be filed by Wednesday, March 31, 2021. The audit firm of Belt Harris Pechacek, LLLP performed the annual audit for the City and determined that "the financial statements...present fairly, in all material respects, the respective financial position of...the City as of September 30, 2020...in accordance with accounting principles generally accepted in the United States of America" (unmodified opinion). The auditors will present the results of the audit to the Finance Committee and then at the meeting will present their findings to the City Council.
Additionally, because the City expended more than $750,000 in federal awards during the most recent fiscal year, a single audit is required for the fiscal year ended September 30, 2020 in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Because the Comprehensive Annual Financial Report is under final review, including a second partner review that is required because of the single audit, all documents must be marked "draft" at this time; however, no significant changes are expected to the final document.
Fiscal/Budgetary Impact:
N/A.
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