Everyone wants to live in a town in a great location, with excellent infrastructure, low taxes and high quality of life. Richmond has all that and more – including 150 years of history, unique shops, restaurants, wine bars, art galleries, and boutiques. Richmond also mirrors the Houston markets low cost of living when compared to cities across the nation, 23.1 percent below average for major metropolitan areas.

City leaders in Richmond recognize that it is important to honor the city's past while also keeping their eyes on the future. This is evident with the recent announcement from richmond.gov about our city receiving high praises from 2018 financial audit. In fact, Richmond received the highest level of assurance that can be given to a city.

The City of Richmond’s Commission heard this week that the prior year’s financials earned an unmodified or clean opinion, the highest level of assurance that can be given to a city. PB&H Audit partner, John Manning, shared the results of the audit for the 2018 fiscal year ended September 30, 2018, with high praise for the City’s financial position.

This was PB&H’s first year to perform the audit for the City of Richmond, which typically introduces a few growing pains, but he said none occurred. The Firm performed 15 fraud interviews, a standard practice, with zero findings. The cash handling departments were reviewed as well with no discrepancies noted. Mr. Manning added, “The City staff does an excellent job of putting  [the financial statements] all together.”

As well, the General Fund balance was $5.93 million which would be operating reserve available to meet emergency needs or unforeseen items necessary to provide for citizens, which exceeds the Government Finance Officers Association ‘Best Practice’ of 90 days. Unlike a standard business, a municipality is encouraged to have a 90 day Fund Balance at any given time which allows a city to meet the needs of its citizens during catastrophic events (like a hurricane, or more recently, the Deer Park  ITC tank fires). In the City of Richmond’s case, the reserve provides a stronger security net to the residents of Richmond for  a period of 134 days should a public calamity occur.

The City also engaged a single audit this year which required additional audit procedures be performed in conjunction with the normal testing during the annual financial audit. The same results of no findings were identified.  A single audit is required when an entity spends more than $750,000 in total Federal funds. Had it not been for Hurricane Harvey, the City would not have had to add the additional audit testing and subsequent report that follows; however, the City again passed with glowing results. 

The City of Richmond ended fiscal year 2018 with a clean opinion for both audits, which means a very strong ‘bill of health’ once again!