FOR IMMEDIATE RELEASE
City of Mount Vernon, Texas
Date: April 21, 2026
City of Mount Vernon Addresses Misleading Information Regarding Annual Audit
Mount Vernon, Texas — Recently, there has been some chatter on social media regarding the City’s reporting requirements and financial solvency. The social media post concerning the City of Mount Vernon’s annual audit is not the City’s audit, nor does it represent the audit report accurately or factually.
The post appears to be an Artificial Intelligence (AI) analysis of selected sections of the annual audit, filtered through an AI prompt to identify potential problems with the financial status of the City. As you may be aware, AI tools can be used to generate various types of analysis and may also be used to manipulate data.
The City’s financial statements received an Unmodified (Clean) Opinion, which is the highest level (gold standard) municipalities can receive on their financial audits.
Municipal audit opinions in Texas, generally prepared for the Annual Comprehensive Financial Report (ACFR), follow standard professional auditing practices and typically fall into four categories: Unmodified (Clean), Qualified, Adverse, or Disclaimer of Opinion. These opinions indicate the reliability of financial records and adherence to GAAP (Generally Accepted Accounting Principles).
An Unmodified (or “Clean”) Opinion is the highest level of assurance an independent auditor can provide for a Texas municipality, indicating that the financial statements are presented fairly, in all material respects, and in accordance with GAAP.
Mike Ward, CPA, has conducted the City’s audit for the past several years. Mr. Ward performs governmental audits for approximately 50 cities and counties, including Franklin County.
The 2025 audit report is available on the City’s website and can be viewed here.
The presentation of the annual audit to the City Council by Mike Ward, CPA, on April 13, 2025, is available for viewing here.
The Management’s Discussion and Analysis section of the annual audit is found on page 4. This section contains the following financial highlights:
· The assets of the City exceeded its liabilities at the close of the fiscal year by $10,303,960. Of this amount, $9,169,031 (89%) is net investment in capital assets. Net position restricted for specific purposes is $905,376 (9%). The remaining $229,553 (2%) may be used to meet the City’s ongoing obligations to its citizens and creditors in accordance with fund designations and fiscal policies.
· The City’s total net position changed by ($1,347,306), or 12%.
· At the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $2,534,057, an increase of $186,063 (7.9%). Approximately 49% of this total, or $1,628,681, is available for spending at the City’s discretion (unassigned fund balance).
· At the end of the current fiscal year, the unassigned fund balance for the general fund was $1,628,681, or 49% of total general fund expenditures.
· The City’s long-term debt decreased by $172,221 (3%) during the current fiscal year.
Additionally, a recent news article insinuated that the City did not report the most recent audit as completed to the Office of the Attorney General. The audit submission was completed and verified. Confirmation of completion from the Office of the Attorney General is available here.
About the City of Mount Vernon:
The City of Mount Vernon is committed to transparency, fiscal responsibility, and serving its citizens with integrity.