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The city's finances earned a clean bill of health Tuesday, March 17, with auditors finding no errors, no fraud and no compliance violations in the fiscal year 2025 audit.
The City Council voted unanimously to accept the annual comprehensive financial report for the fiscal year ending Sept. 30, 2025, audited by Forvis Mazars.
Finance Director Jay Patel told the council the city received a clean and unmodified audit opinion, the highest level of assurance available.
"Our finance team spent countless hours and effort to ensure that our city maintained a strong financial position," Patel said.
Dan Barron, engagement partner at Forvis Mazars, and audit manager Tyler Hoffman presented results to the council. The firm ranks third nationally in single audit services and serves more than 850 public sector clients across the United States.
Auditors issued three reports covering financial statements, internal controls and federal award programs. The city's largest federal program under review was its American Rescue Plan Act funding, which recorded $2.5 million in expenditures during fiscal year 2025.
"We did not identify any material weaknesses or significant deficiencies," Barron said. Auditors found no fraud, no noncompliance with laws or regulations and no findings on federal award programs. Both single audit reports came back clean.
Barron also said audit adjustments were limited to work the city had already outsourced to Forvis Mazars, such as pension entries and capital asset reconciliation. No errors requiring correction were found.
Hoffman told the council that upcoming changes from the Governmental Accounting Standards Board are less demanding than recent ones. Known as GASB, the board sets accounting standards for government entities nationwide.
This year the city adopted GASB 101, which changed how employee leave is calculated and recorded. Patel said the standard required significant research and effort to implement. The next two standards, effective in fiscal years 2026 and 2027, focus on disclosure presentation rather than changes to how figures are calculated.
Council member Neil asked whether adopting new GASB standards adds cost to the city. Patel said the workload varies but the upcoming standards are less demanding than GASB 101.
Neil also flagged two financial trends from the report. Property sales and franchise taxes dropped by approximately $1 million, which he said he hoped city leadership could address. The general fund, however, grew by nearly $10 million, continuing a multi-year upward trend.
Council member David Reid praised the finance team and said third-party confirmation matters to residents. "Everything is out in the open, and a third party confirmed it is accurate and above board," Reid said. He added that the achievement reflects contributions from every city department, not just finance.
Council member Elizabeth Villafranca credited city leadership at all levels, calling the results further confirmation of progress in Farmers Branch.
Mayor Terry Lynne said the audit reflects the city's standing commitment to accountability. "To say that a city is not transparent is the most idiotic thing," he said. "We actually do it. You confirm that we do it."
The council approved the resolution by a unanimous vote.
