Agenda

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City Council Regular Meeting

Meeting Date:

03/19/2024

BACKGROUND

State law requires that local governments complete an annual audit by an independent licensed public accounting firm and publish an annual financial report within 6 months of the fiscal year end date.

This is the official Fiscal Year 2022-23 Annual Comprehensive Financial Report (ACFR) for the City of Schertz as of September 30, 2023. These statements show the financial performance and financial health of the City for the previous fiscal year. The presentation will be made by Travis Rogers, CPA, Senior Audit Associate, of Patillo, Brown, and Hill, LLP. The Audit Committee consisting of Mayor Gutierrez, Councilmember Heyward, Councilmember Michelle Watson, City Manager Steve Williams, Deputy City Manager Brian James, Assistant City Manager Sarah Gonzalez, Finance Director James Walters, and Assistant Finance Director Jessica Dycus met on March 12, 2024 to review the audit findings and financial statements as presented by the auditor, Paula Lowe, Audit Partner, of Patillo, Brown, and Hill, LLP.

The City received the highest level of confidence from our auditors that the City's financial statements are fairly represented in the annual report and they found no significant matters or issues as stated in their Governance Letter attached and in the Independent Auditor's Report on page 1 on the ACFR.

Overall the City's financials were in good shape and increased the net position (equity) of both Governmental and Business type funds by $48 million or 12%. The largest areas contributing to the increase were streets and utilities infrastructure donated to the City by developers and investment earnings making up $38 million combined.

Unassigned Fund Balance in the General Fund decreased to $12 million, or by $246,000, bringing that balance to 31% of operating expenditures. This is a planned drawdown as required by the City's Fund Balance Policy until the fund balance equals 26% of operating expenditures.

Attachments
Resolution 24-R-34
Governance Letter