The Austin city controller and external auditors on April 16 presented the city's fiscal year 2024 Annual Comprehensive Financial Report (ACFR) and the single-audit results, reporting clean opinions on financial statements and federal/state compliance while identifying one material weakness tied to OPEB accounting controls.

Maria Norton, city controller, and Deloitte representatives Tracy Cooley and Madeline Morris told the Audit and Finance Committee the ACFR was issued March 11 and the single-audit report March 28. Deloitte noted the city is in compliance with audit requirements and that the audit engagements, including passenger facility charge and agreed-upon-procedures reports, had been completed.

Deloitte said it identified management override of controls as a perennial audit risk but reported no audit evidence indicating control overrides this year. The auditors reported one material weakness involving controls over the accounting for other postemployment benefits (OPEB), the city's retiree health plan. During the fiscal year the city added a Medicare Advantage plan option; auditors said the plan change should have been considered in the OPEB valuation because employees could sign up during the measurement period. Management reran actuarial calculations and corrected the ACFR; auditors recommended strengthened review controls to ensure future plan changes are incorporated into OPEB valuations.

Deloitte also reported corrected and uncorrected misstatements in the course of the audit. One corrected item removed a component unit, Creekside Senior Housing Limited Partnership, from prior-period presentation after changes in the city's ownership share were identified.

On compliance testing, Deloitte reported unmodified opinions for federal and state major programs, noting the city expended more than $245 million in federal program dollars in fiscal 2024 and about $6.7 million in state grant spending subject to single-audit requirements. The auditors reported no findings on the airport passenger facility charge compliance report.

Committee members asked about next steps for reviewing the ACFR in detail; Norton said bound copies of the reports will be provided and staff can schedule follow-up briefings. Deloitte said it has communicated recommended control improvements and will work with staff on implementation.

Ending: City leaders said the audits are complete and that management has agreed to recommendations to strengthen controls over OPEB valuation. The controller's office will deliver bound copies of the ACFR and single-audit reports to council offices and coordinate follow-up briefings on data tables and financial schedules upon request.