TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, consider and act to approve Resolution 24-74 accepting the Town of Westlake 2023 Audit Report; and take appropriate action (Cayce Lay Lamas, Director of Finance)
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STAFF: Cayce Lay Lamas, Director of Finance
BACKGROUND:
The Town of Westlake is required by State law to engage an independent accountant to perform an audit on the Town’s financials. The Fiscal Year 2022-2023 audit was performed by Brooks Watson for the second year in a three-year engagement. Brooks Watson was also engaged to audit Westlake Academy and Westlake Academy Foundation; the Academy audit has been completed.
The result of the audit for Fiscal Year 2022-2023, as presented for Council’s acceptance, is an unmodified opinion. This means that the auditors have found that the financial statements present fairly, in all material aspects, the financial position of the Town of Westlake at September 30, 2023.
DISCUSSION:
The Town of Westlake experienced an delay in receiving the audit report due to the issues converting to a new financial software at the Academy and challenges for the auditor to perform due diligence on the discreetly presented component unit. The final report, dated October 31, 2024, consists of the audited financial statements and narrative overview to communicate the Town’s financial performance for Fiscal Year 2023. Highlights include:
• The assets and deferred outflows of the Town exceed its liabilities and deferred inflows by $90,402,476.
• The total net position increased by $17,511,488; the majority is invested in capital assets or restricted for specific purposes.
• The Town’s governmental funds reported combined ending fund balances of $46,173,278, which is an increase of $9,808,079 from the prior fiscal year.
• Unassigned fund balance for the General Fund was $30,834,998, as of the fiscal year end.
The Town’s financials include Westlake Academy operating activities, as a blended component unit, presented as a major governmental fund. Separate from these operating financial statements, the Town’s financials also include expenditures within the General Fund, capital expenditures within the Capital Projects Funds, and long-term financing obligations within the Debt Service Funds in support of the Academy.
The implementation of a new Governmental Accounting Standards Board Statement, No. 101 (Compensated Absences) will be effective with FY2025 and has no bearing on the F2023 audit presented.
In addition to the financial report, Brooks Watson is required to provide information to the governing body on material weaknesses and significant deficiencies. The auditors communicated specific areas of concern, all of which have been evaluated, were determined to have occurred prior to current staff assuming responsibilities, and all have been addressed with a review of processes and implementation of updated standard operating policies and procedures.
Documents included in the Council packet are in draft form; final versions will be available in hard copy at the meeting. There will not be any material changes to the information.
FISCAL IMPACT:
None
STAFF RECOMMENDATION:
Staff recommends Council approve the resolution to accept the audit for Fiscal Year 2023.
ATTACHMENT(S):
• Resolution 24-74
• Fiscal Year 2022-2023 Audit Report (Draft)
• Brooks Watson Letter to Council (Draft)
• Statement of Material Weaknesses & Significant Deficiencies (Draft)
TOWN COUNCIL ACTION/OPTIONS:
1) Motion to approve Resolution 24-74, as presented.
2) Motion to amend with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny