Cameron Aaron presents clean audit report for 2024 financial statements

The Port Arthur City Council convened on July 15, 2025, to discuss key financial matters, including a presentation on the 2024 audit by Cameron Aaron, an audit supervisor from Patillo Brown and Hill LLP. The meeting began with Aaron introducing himself and expressing enthusiasm for presenting the audit results, marking his first year in this role.

Aaron provided an overview of the audit, emphasizing its purpose and objectives, which were conducted in accordance with Generally Accepted Auditing Standards (GAAS). He highlighted that the audit report included three main deliverables: the audit report, a single audit report, and a communication letter. Notably, the audit yielded a clean, unmodified opinion, indicating that the financial statements were materially correct. This outcome reflects positively on the city's finance team and their efforts.

The audit revealed that the city expended approximately $30.68 million in federal awards during the fiscal year 2024, a significant increase from previous years. Aaron noted that the audit included assessments of various grants and contracts, including those related to the American Rescue Plan Act (ARPA) and the Clean Water State Revolving Fund.

While the overall audit results were favorable, Aaron pointed out a material weakness related to financial information errors that were corrected during the audit process. These issues stemmed from turnover within the finance department and the complexity of managing multiple grants. However, he expressed optimism that these challenges would be resolved in the future.

During the discussion, Council Member Josette sought clarification on the term "unmodified opinion," which Aaron explained as an assurance that the financial statements were free of material misstatements. She also inquired about property tax issues, to which Aaron responded that local governments often face challenges in collecting property taxes within the fiscal year, impacting their financial reporting.

The meeting concluded with a focus on the city's financial health, with Aaron noting that the general fund had a revenue of $79 million against expenditures of $71 million. Despite some fluctuations in equity and cash flow, the city remains in a stable position, with approximately four months of equity available to meet future expenditures.

Overall, the meeting underscored the importance of transparency and accountability in the city's financial management, with the audit serving as a critical tool for assessing fiscal health and guiding future budgeting decisions.