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Elgin’s external auditor reviewed the financial statements of governmental activities and funds, and presented a respective financial position for the city during last week’s council meeting.
In compliance with Texas law and the Elgin City Charter, the annual audit report considered local government and business assets and liabilities for the period ending in September of last year.
The representative issued a clean, unmodified audit opinion on the city’s financials, the best possible outcome and highest level of assurance that financial statements are free of any material misstatement.
“We were great, that’s what that boils down to,” said Mayor Theresa McShan.
The audit evaluated new activity across significant departments and put together a preliminary audit plan, as well as reviewed all material assets, liabilities, revenues and expenditures across funds and component units after the books have been closed.
As of the end of the year, total city-wide assets exceeded total liabilities by about $41 million. Combined governmental funds ended with a balance of $21 million, an increase of just under $15 million from the previous year.
Consolidated governmental activities revenue was $18.6 million, excluding utility funds, with an increase of $3.4 million coming mostly through property taxes.
Total government expenses increased to $13.2 million, $1.4 million more than the previous year, targeting public safety, public works and general governmental expenses.
Additionally, the city maintained an adequate unassigned fund balance, 43% of general fund expenditures. Reserved for unplanned emergencies, the amount is much greater than the recommended 25% and the city could potentially last 157 days without any additional funding, according to the report.
