External auditor outlines FY26 plan, flags management-override risk and GASB changes

Jeff Wada, a partner at audit firm Weaver, presented the firmplanning and required communications for Garlandon Sept. 29, saying the audit will be "a risk-based approach" and outlining interim fieldwork, final field work and an expected March issuance of financial statements.

Wada told the committee that certain audit risks would be emphasized, including the potential for management override of internal controls and risks tied to revenue streams such as utilities, property taxes and federal grant programs. "This risk isn't specific to the city of Garland," he said, describing management override as a recurring audit concern. He also described the interim work done in August and noted the firmhas been the city's auditor for more than a decade.

Wada summarized two new Governmental Accounting Standards Board rules auditors will apply: GASB 103 (financial-reporting model improvements), which will change how managementdiscussion and analysis and enterprise-fund revenue classifications appear in the statements, and GASB 104 (disclosure of certain capital assets), which requires separate disclosure of leased and subscription assets. He said Weaver will provide eight hours of on-site training for city finance staff at the end of October to help implement the changes.

Committee members asked how the auditors would test federal grant compliance and whether programs such as housing choice vouchers would be included; Wada said single-audit procedures would test federal expenditures exceeding $1,000,000 and that HCVP (housing choice vouchers program) testing was included in the interim work. Finance staff thanked Weaver for the training offer and said the Workday implementation and staffing turnover made the training timely.