The Amarillo Economic Development Corporation (AEDC) held its regular meeting on Monday, to review the fiscal year 2024 audit, discuss a legal settlement, approve reimbursements, and revise its internal policies. The meeting featured several critical decisions, some of which could impact the AEDC’s operations moving forward.
Audit presentation and approval process
The meeting began with a presentation by Janie Arnold, a partner at CMMS CPAs & Advisors PLLC, who delivered the AEDC’s fiscal year 2024 audit. Arnold noted some “significant risks” identified in the audit, such as management override of controls and improper revenue recognition. These risks are standard in any audit process, as there is always the potential for errors or mismanagement, but they are not specific to AEDC.
There was also a significant increase in the AEDC’s direct grants and business retention services contracts, rising from $3.4 million in 2023 to $27.2 million in 2024. This change was mainly due to money designated for the Texas Tech University System’s veterinary school project being moved from the “Commitments” section (funds set aside for future payment) to the “Payables” section (funds now due to be paid over the next four years).
Current board chairman Alex Fairly requested more time to review the audit report before approving it. However, City of Amarillo Assistant City Manager and AEDC Treasurer Laura Storrs stressed that the board needed to accept the report by March 31 to meet the Municipal Securities Rulemaking Board (MSRB) posting deadline. The MSRB requires certain financial reports to be publicly posted on its platform for transparency. Storrs emphasized that the acceptance of the audit was necessary to comply with the deadline…