The Amarillo City Council convened a special meeting Friday afternoon and voted to file the City’s Annual Comprehensive Financial Report (ACFR), ensuring compliance with the Texas Local Government Code, which requires filing within 180 days of the fiscal year’s end. Amarillo’s fiscal year concluded on September 30, 2025, making the Sunday deadline for submission critical.
The meeting included a presentation from Scott Krchnak of CliftonLarsonAllen LLP, marking the first year the firm has conducted the City’s ACFR. Krchnak highlighted the cooperation of the City’s finance staff in preparing the draft report, which council members received Thursday evening.
Amarillo Mayor Cole Stanley acknowledged that the council ideally would have received the report earlier to allow time for thorough review and preparation of questions. He attributed the delay to the finance department’s transition to new accounting software, which has presented a learning curve for staff and contributed to the late delivery of the multi-hundred-page report.
Stanley expressed the expectation that during the regular council meeting on April 14, the council will have an opportunity for a comprehensive discussion of the report alongside CLA, with greater community participation. He also noted that Place 3 Councilmember David Prescott was absent from Friday’s meeting due to the birth of his first grandchild.
Krchnak emphasized that the draft report may differ from the final filing. He explained that any changes could result from council questions, additional review, or adjustments in reported amounts, noting the report remains open to modifications if warranted.
The ACFR includes audits of all City component units, such as the Amarillo Hospital District and the Amarillo Economic Development Corporation, which are considered part of the reporting entity. During the meeting, Place 4 Councilmember Les Simpson inquired whether the audit had uncovered any fraud, misuse, or irregularities. Krchnak confirmed that none were detected, though he noted that the absence of findings does not guarantee that undiscovered issues do not exist.
Krchnak also indicated there were no significant concerns that would constitute red flags. He highlighted ongoing efforts by City staff to provide more timely and accurate reconciliation of capital assets and construction-in-process (CIP) accounts. Amarillo City Manager Grayson Path elaborated on these efforts, describing the establishment of a CIP committee tasked with reviewing ongoing capital projects, identifying completed projects, and ensuring proper closure and reporting of funds. Path emphasized the focus on stronger, more timely communication and systematic review of project histories.
After discussion, the three council members present voted to file the report with the City Secretary’s office. Simpson, who had asked a question earlier, had to leave before the vote due to a prior commitment.
The filing ensures Amarillo remains compliant with state law while allowing time for more in-depth review and discussion at the upcoming April council meeting. City leaders and auditors emphasized transparency and ongoing improvements to financial processes, particularly in capital project accounting, as part of a broader effort to maintain accurate and reliable financial reporting.
