During its regular meeting on Tuesday, the Amarillo City Council received a detailed overview of the city’s financial health with the presentation of the annual comprehensive financial report for the 2023/2024 fiscal year. Assistant City Manager and Chief Financial Officer Laura Storrs led the discussion, underscoring the dedication of the city's financial staff in maintaining accountability and transparency.
“For your awareness, the city has 17 degreed accountant positions. We also currently have two CPAs on staff, and they all participate in the audit process to a certain extent,” Storrs said, emphasizing the depth of financial expertise within the city’s administration.
A Thorough Review of Amarillo’s Financial Standing
The financial report consists of a 300-page audit prepared by CMMS CPAs and Advisors PLLC. A key component of this audit is the single audit report, which is a federally mandated review of specific state and federal grants received by the city. This report ensures that Amarillo remains compliant with grant requirements and properly manages external funding.
Storrs highlighted that Amarillo consistently strives for financial excellence, submitting its report each year to the Government Finance Officers Association (GFOA) for evaluation. The city has earned an award for excellence in financial reporting for 48 consecutive years—a testament to its strong fiscal management.
“The annual comprehensive financial report, we do file it with the Government Finance Officers, and we do try to seek an award for excellence in financial reporting each year,” Storrs stated. “We have received that here at the City of Amarillo for the last 48 years. So the last one we received was for the audit right prior to the one that we’re looking at today.”
Audit Findings and City Response
While the report affirmed the city’s financial stability, it also identified two specific findings. The first finding was a delayed financial report, which the city attributed to staff turnover and the transition to new accounting software. Officials noted that the delay was not a result of financial mismanagement but rather logistical challenges related to staffing and technology upgrades.
The second issue was an accounting error in which a payable item was mistakenly recorded as an expenditure. However, city officials confirmed that the error was promptly corrected once discovered.
Councilmembers Tom Tipps and Don Tipps, who serve on a subcommittee responsible for financial oversight, had the opportunity to conduct a deeper review of the audit findings last week.
“Councilman Tipps and myself, as well as the staff, were able to really dig into that for almost two and a half hours, going into the cash versus the accrual, the estimates versus the actual,” Councilman Stanley explained.
Stanley further emphasized that the city’s financial situation remains stable, with actual spending coming in under budget.
“So we have a budget item, and then we show what we actually spend,” he continued. “Those items are favorable, meaning we are spending less money than we are budgeting currently and [in the] previous year.”
Moving Forward: Strengthening Amarillo’s Financial Oversight
Despite the minor audit findings, the overall financial report reflects a strong and well-managed budget. City officials expressed their commitment to addressing any procedural inefficiencies and improving financial tracking systems to prevent similar issues in the future.
The city will continue refining its financial operations, particularly in adapting to new accounting software and stabilizing staffing levels in the finance department. Additionally, with an ongoing commitment to transparency, officials plan to use the audit’s insights to enhance financial reporting and budget planning.
As the city prepares to submit its latest report for financial excellence consideration, Amarillo remains on track to maintain its reputation for responsible fiscal management.
