LEXINGTON, Ky. — The Budget, Finance and Economic Development Committee delivered a report at the Feb. 18 council work session summarizing the committee’s Jan. 21 meeting, including a presentation of the fiscal year 2024 comprehensive financial review.

Committee Chair James Brown said the committee unanimously elected him chair and Councilmember Ellinger as vice chair and approved a prior committee summary. Commissioner Hensley presented quarter‑2 financials through Dec. 24, 2024, reporting that revenue collections were “slightly exceeding budget through quarter 2 with a positive variance of 2.6%” and that much of the variance is encumbered for contracted expenditures.

The committee introduced Crossland as LFUCG’s new auditing firm. John Crossland and Jacob Smith presented the annual comprehensive financial review and reported an unmodified audit opinion for fiscal year 2024. Crossland characterized LFUCG as a low‑risk auditee for fiscal year 2024 and said the firm is testing federal major program expenditures to reach a minimum of 20% coverage of total federal expenditures of $56,000,000.

No committee action was required on the items presented; the committee removed three items from committee during an annual status review and adjourned.

Why it matters: An unmodified audit opinion indicates Crossland did not identify material misstatements in the financial statements. The 2.6% positive revenue variance is modest and staff said the budget team will continue to monitor operating variances and the availability of dollars for potential reallocation.