Rio Grande City accepts FY2024 financial audit showing higher fund balances

The Rio Grande City Commission unanimously accepted the city's fiscal year 2024 financial audit at its April 20 meeting.

The audit, presented in person by Raul Hernandez, CPA, concluded with an "unmodified" opinion — a clean audit — Hernandez told the commission: "The auditors opinion is unmodified, which translates into a clean opinion." The report showed the general fund ended the year with a fund balance of $5,645,893, an increase of about $1.23 million from the prior year. The water, sewer and sanitation fund reported an improved net position, ending at $25,462,426.

City finance staff and the auditor walked commissioners through the biggest line items. Hernandez noted total general-fund revenues of $9,125,773 and expenditures of $11,439,476 before transfers, with other sources and transfers producing the net positive change. On the utilities side, the water/sewer fund reported total revenues of $7,493,638 and net increases driven partly by meter replacements and improved collections.

Commissioners asked about the transfers and the auditor clarified they were interfund transfers coming from other governmental funds. Finance director Leo Cantu and interim public utilities director Ruben Salinas were present while the auditor summarized the major funds and answered questions about the report and timing for related action items.

The commission then moved, seconded and voted unanimously to accept the audit as presented by Raul Hernandez. Commissioners recorded an aye vote and the motion carried without objection.

The audit presentation also noted an item still pending with the Texas Water Development Board: a loan/grant package for city meter replacement was scheduled to be considered at the TWDB June meeting.

The acceptance means the city will file the audit as its official FY2024 financial statement and proceed with any budget amendments or other follow-up recommended by staff and the auditors.