The Parker County commissioners unanimously approved the 2018 financial audit after being presented the report at a special called meeting Friday morning.
Jackie Gonzalez with Weaver and Tidwell, who serves as the county’s engagement partner on the audit, presented the report to the commissioners.
“I am happy to report that we have no material weaknesses over internal control, over financial reporting and we are reporting one significant deficiency, which is really a carry-over from last year related to construction and process on the capital projects that you have at the various precincts,” Gonzalez said. “Those are rolling up through the auditor’s office and now that we’ve been through this process, they have really great ideas about how they can improve upon that. I really expected moving forward that the process will be fully implemented and that should go away as we move forward into the next [fiscal] year.”
Gonzalez said the firm’s opinion is an unmodified opinion, which is the highest level of assurance the independent accounting firm can give.
Gonzalez then went over the balance sheet of governmental funds, which include the general fund, the lateral road fund, capital projects bond road fund, debt service fund and other fund.
“So at the end of Sept. 30, 2018, you ended the year with just over $23 million in total assets in the general fund. In total liabilities and deferred inflows of $378,000, which left you with a total fund balance in your general fund of $17,560,000. In the lateral road fund, you had just over $7.2 million in total assets and deferred inflows and liabilities of $173,000, which leaves total fund balance in that fund of almost $6.4 million,” Gonzalez said. “The capital project tax bond funds had total assets of $26.5 million and total liabilities of almost $1.6 million, leaving a total fund balance in there of nearly $25 million, which you can see is mostly restricted for the capital projects for which those bonds were issued. The debt service fund came out with $1.3 million in total assets, $113,000 in total liabilities and almost $1.2 million left in fund balance of course which is all reserved or restricted for debt service.”
Gonzalez said the “other” fund is an accumulation of all the county’s special revenue funds not large enough to be presented on their own.
“The special revenue fund you had just over $6 million in assets, $556,000 in liabilities and that left $5.5 million in fund balance,” Gonzalez said. “Part of that is restricted for the actual grants themselves or other programs and then $107,000 is committed.”
Gonzalez next went over the statements of revenues, expenditures and changes in the fund balance, transfers, for each of the funds.
“End of the year for the general fund, you have $48.3 million in revenue and $46.7 million in expenditures and then a transfer out of $1.1 million, which you can see went into the debt service fund. That left a change in fund balance of $493,000. In the lateral road fund you had $12.6 million in revenue against $11.5 million in expenditures and then a small amount there from proceeds on the sale of some assets out of the lateral road fund,” Gonzalez said. “Then the capital projects fund, you had $1.2 million, almost $1.3 million, in revenue against $15.2 million in expenditures, of course most of that is capital outlay, which brings you to a negative change in your fund balance of almost $14 million. Of course, you would expect [this] as you have those bond proceeds and you expend them for the capital projects you have planned. The debt service fund, $8.2 million in revenue — of course most of that is from property taxes — and the expenditures of $9.4 million related to payment of principal and interest on the debt.”
Gonzalez said there was $2.5 million in the other special revenue funds against $1.8 million in expenditures, which left the county with a positive change in fund balance of $745,000.
“That brings us total for all funds combined a change in fund balance of $11.5 million,” Gonzalez said. “You can see that’s offset from the gains in some of the funds and then the loss, if you will, or negative change of fund balance in that capital projects fund.”
Gonzalez lastly went over the original budget and final amended budget.
“For your revenues in the general fund, you had an amended budget of $44.2 million and came in over that at $48.3 million. It comes to total expenditures on your amended budget of $47.6 million and you came in at $46.7 million.You had a budgeted transfer in and a budgeted transfer out and really what you ended up with was a larger transfer out there of $1.1 million,” Gonzalez said. “In the lateral road fund, you had $12.4 million, almost $12.5 million, in budgeted revenue and came in at over $12.6 million and then expenditures budgeted at $14 million and came in at $11.5 million. The other financing sources here are just the sell of the assets, which came in a little higher than what was budgeted.
“I know this could have been a very difficult year with transition and I appreciate all the hard work that everybody put in to make this a pretty seamless process.”
Parker County Auditor Brianna Fowler, who started the position six months ago, said she’s grateful for her team at the auditor’s office.
“When we’re going over these numbers — all the revenue and expenditures — every single dollar comes in and out of the auditor’s office,” Fowler said. “There’s a lot of work and I feel very grateful that I came into such a strong team, even just being here for six months, so I know and I recognize that I have a really great group of people.”