All right, good morning.

It is 9 01.

I'm gonna call the audit and finance committee committee meeting to order.

Um, our first order of business is the approval of the June 2nd meeting minutes.

Thank you.

Okay, all in favor.

All right, motion passes.

Uh we have two briefings this morning.

The first is with Patrice Randall, the audit work plan and activities update.

Good morning.

Patrice Randall, city auditor.

Here with a quick update of the status of the fiscal 2026 audit plan.

So we have three audits that have been completed as far as field work, and we were I expect to release those reports prior to fiscal year end.

The internal service billing process and cost allocations audit.

We've had the exit conference.

So once we receive responses from management, those that report will be released.

The other two are in the report writing phase.

The municipal court case processing audit has been completed and is pending my review.

We have six audits that are currently in progress, and we expect to complete those by fiscal year end.

Uh, two or three of those are substantially completed, but again, all of those are expected to be completed by fiscal year end.

We have two that are expected to be completed in early fiscal 2027, and those will be started prior to fiscal year in, but not completed in fiscal 2026.

And then we have two audit two projects that are ongoing, which is our data analysis and our follow-up audits.

We have one audit that's on hold, it's pending discussions within the environmental services department, and we have two audits that are carried forward, and you'll see them on the 2027 audit plan, and those are carried forward because most of the hours for that project will be those hours will be exhausted in fiscal 2027, and that summarizes the status as of today.

Uh, at the October meeting, you all receive a more uh update as to what we have and have not completed for the fiscal year for 2026.

Thank you, Patrice.

Questions from the committee?

Okay.

So Patrice, can you talk a little bit about the audit on the homeless response efforts?

Um that audit is still in progress.

We're looking at the overall process.

We're looking at funding, we're looking at the programming, we're looking at contract compliance and overall view.

Okay.

Yes.

Other questions?

Okay, thank you, Patrice.

Uh, next we have our monthly financial report for fiscal month nine.

Um, Kate Perry and Christy Lemon.

Good morning.

Um Christy Lemon, Assistant Director in the Fort Worth Lab.

Nice to be with you this morning.

Just gonna walk through a couple of funds in the monthly financial report, and then of course I can answer any questions that you might have.

We will start on page five with a general fund overview.

So we can look at revenues here.

So we've been talking about revenues a lot this year, really same story, and there's gonna be uh more conversation at work session this afternoon.

So we'll just kind of touch lightly on this.

Um, you'll see that the property tax revenue is $13 million below budget.

About 10 million of that is due to protests, mid-year protests and litigation.

So we've just seen that trend continue throughout the year.

Um, sales tax was increased a little bit, so the June, June to June sales tax is up six percent.

So good trend there.

And of course, we don't yet know about the sales tax that was generated by the World Cup.

So our sales tax collections are a couple of months in arrears, so we'll find out about that soon.

So looking forward to that.

Um, and then high level, you'll see the general fund.

Um we've reduced expenses, and we're projecting to save uh six hundred and sixty thousand dollars in the general fund.

So we can jump now to page eight, and we'll just look at an overview of the departments.

So when we looked together at the March monthly financial report, we were projected to be about 10.

We were projected to be more than 10 million dollars over budgets.

We've cut about 10 million in expenses since we put the hiring freeze in place and started to cut discretionary spending in the general fund departments.

So incredible effort there by all of our departments to reduce expenses.