Buda’s annual audit on financial reports received the highest level of assurance for Fiscal Year 2016-17, according to a press release.
The “clean,” or unmodified audit means the “city’s financial records have been determined by the audit firm to be free of any misrepresentations,” according to the release.
This also indicates that the financial statements are materially correct and can be relied upon. Any healthy fund balances are viewed as financial stability when bond rating agencies determine the city’s bond rating.
Whitley Penn, LLP., the city’s external audit firm, presented the Sept. 30, 2017 audit results to council on April 17, where council approved the results.
“We are pleased to have again received a ‘clean’ audit for our last fiscal year. The city of Buda is committed to being responsible for managing all of the tax dollars it receives from its residents, and throughout this last fiscal year the Finance Department has worked diligently to ensure this commitment is followed. Additionally, receiving a clean audit is the result of our continued commitment to maintaining strong internal controls and financial processes,” said Finance Director June Ellis in a statement.
Sales tax revenue is the largest source of revenue to the City, which increased by 6.8 percent in FY 2017 from the previous year. The city expects this to grow in coming years, according to the city’s comprehensive annual financial report.
The city of Buda’s net position, or statement of personal net worth, increased by $2.2 million from the previous year, meaning the city’s overall total assets exceed the total liabilities. The net position increased from $83.9 million to $86.1 million. This increase demonstrates the ability of the city’s revenues to keep pace with annual expenses, according to the release.
Looking toward future goals, Buda will “continue to seek to lower its liabilities, including long term debt, and increase its cash and investments to continue to maintain a positive net position,” Ellis said.
The city’s finance team includes Ellis, Assistant Finance Director Debra French, Accounts Payable Specialist Lori Comstock, Purchasing Manager Victor Castillo, and Accounting/Payroll Specialist Neilynn Hebert.
Mayor Pro Tem Wiley Hopkins, Council Member Remy Fallon, and Council Member Evan Ture all served on the audit committee.