Certified Public Accountant Stephen Horton of Coleman, Horton & Company awarded the City of Devine an unqualified opinion on its finances, the highest level possible, after conducting an audit on Fiscal Year 2017-2018.
Horton delivered the results of the audit at the City Council meeting on Feb. 19.
According to the audit, as of Sept. 30, 2018, the City had $11.5 million in assets, including cash and cash equivalents of over $5 million in governmental and Water/Sewer funds, and $4.8 million in liabilities.
“Based on $11.5 million in assets to have $7 million equity is a healthy financial position,” Horton said.
The General Fund had a loss of $271,000, which Horton attributed primarily to the City taking over the golf course. The loss brought the General Fund’s balance down to just under $2 million.
“Even though we had a loss this last year, the fund balance of the General Fund of almost $2 million represents at least six months of operating reserve,” Horton said, “and for sound financial reserves, anything over three months is very satisfactory.
“So the City of Devine has essentially double what we would consider a conservative fund balance.”
The Water and Sewer Fund had $1.9 million in revenue vs. $1.8 million in expenditures for a profit of $155,000, a number that includes the non-cash depreciation expense of $380,000.
“So the Water/Sewer is making a little profit, and I know you’ve got projects looking forward the City needs to address regarding upgrading water and sewer needs, and so that’s a good position to be in to go into the capital expenditures that are coming up,” Horton said.
“All in all, the City is very healthy financially.”
A Steve Lopez=David Espinosa motion to accept the results of the audit passed 4-0, with Jennifer Schott and Cory Thompson voting for the measure.
Schott and Thompson then moved to accept a contract with Coleman, Horton & Company for Fiscal Year 2018-2019, which also passed 4-0.
Councilman David Valdez was absent.
By Marly Davis
Staff Writer
