A certified public accounting firm completes an independent audit at the end of each fiscal year. The audit has been completed by Weaver and Tidwell, LLP for the year ending September 30, 2022. In June 2022, City Council approved an engagement with Weaver and Tidwell, L.L.P. for professional audit services for the fiscal year 2022, based on the recommendation of the Finance/Audit Committee- after their review of proposals through an RFP process. Engagement letters for subsequent year audits will be considered by City Council annually for approval.
 
Annual financial statements have been prepared based on the audit, including the auditor’s opinion, and must be filed with the City Secretary within 180 days after the last day of the fiscal year to be compliant with Local Government Code 103.003.

The audited financial statements, which include the auditor’s unmodified, or clean opinion, will be presented to the Mayor and City Council and provided to the City Secretary for filing. The auditors met with the Finance/Audit Committee on February 16, 2023, to review the single audit, financial statements, and Auditor’s Opinion and answer any questions.
 
The Annual Comprehensive Financial Report (ACFR) contains information that can be utilized to evaluate the City’s financial condition and its operational and fiscal accountability for the year. The ACFR consists of a comprehensive summary of the City’s finances and other relevant information for the audit year, including economic overviews, financial analyses, financial statement note disclosures, budgetary and other compliance schedules, and other statistical data. The ACFR is prepared in conformity with accounting principles generally accepted in the United States of America and is audited by the City’s independent auditor.

The ACFR goes beyond the minimum requirements of generally accepted accounting principles to prepare a financial report that evidences the spirit of transparency and full disclosure. The ACFR consists of three sections:

• Introductory — Orients and guides the reader through the report.
• Financial — Includes the government-wide financial statements, basic financial (fund level) statements, notes to the statements and the independent auditor's report.
• Statistical — Provides additional financial and statistical data, including data about financial trends that may better inform the reader about the government's activities. Information presented in the statistical section is unaudited.

A copy of the reports will be shared with the City Council prior to the meeting and will be available to the public after it has been received by the City Council.

The City’s focus on resiliency and innovative constraint has enabled us to maintain our financial strength and continue providing the high-quality services that are important to our residents. The City ended the year in a better financial position than anticipated in the operating funds. Accountability and transparency are important, and the City’s commitment to these efforts is recognized through the audited financial statements, which report future obligations of the City, such as long-term debt, pension obligations, and other post-employment benefits.
 
The City participates in the Certificate of Achievement for Excellence in Financial Reporting Program established by the Government Finance Officers Association. This is the highest recognition program in the area of governmental accounting and financial reporting. The City has received the Certificate of Achievement for Excellence in Financial Reporting annually since Fiscal Year 1983.
 
In conjunction with the annual financial audit, a review of federal funds was conducted, and a compliance report (or Single Audit) has been issued for FY22. This report will be distributed to the appropriate agencies through the single audit clearinghouse.