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Is MCCLANAHAN <br />H <br />INDEPENDENT AUDITORS' REPORT <br />Honorable Mayor, <br />Members of the City Council, <br />and City Manager <br />City of Paris, Texas <br />Opinions <br />1400 W. Russell <br />Bonham, TX 75418 <br />903-583-5574 <br />Fax 903-583-9453 <br />We have audited the accompanying financial statements of the governmental activities, the business -type activities, <br />the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City <br />of Paris, Texas (the City), as of and for the year ended September 30, 2025, and the related notes to the financial <br />statements, which collectively comprise the City's basic financial statements as listed in the table of contents. <br />In our opinion, the financial statements referred to above present fairly, in all material respects, the respective <br />financial position of the governmental activities, the business -type activities, the discretely presented component <br />unit, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2025, and the <br />respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary <br />comparison schedule for the General Fund for the year then ended in accordance with accounting principles <br />generally accepted in the United States of America. <br />Basis for Opinions <br />We conducted our audit in accordance with auditing standards generally accepted in the United States of America. <br />Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the <br />Financial Statements section of our report. We are required to be independent of the City, and to meet our other <br />ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the <br />audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. <br />Change in Accounting Principle <br />As discussed in Note I. J., the City adopted new accounting guidance, GAS13 Statement No. 101, Compensated <br />Absences. Our opinions are not modified with respect to this matter. <br />Responsibilities of Management for the Financial Statements <br />Management is responsible for the preparation and fair presentation of the financial statements in accordance with <br />accounting principles generally accepted in the United States of America, and for the design, implementation, and <br />maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free <br />from material misstatement, whether due to fraud or error. <br />OLMES , LI.P <br />xth St. SE <br />George H. Struve, CPA <br />Certified Public Accountants <br />Pads,� TX 75460 <br />Debra J. Wilder, CPA <br />903-784-4316 <br />Teffany A. Kavanaugh, CPA <br />Fax 903-784-4310 <br />April J. Hatfield, CPA <br />Brittany L. Martin, CPA <br />304 W. Chestnut <br />Denison, TX 75020 <br />Steven W. Mohundro, CPA, <br />903-465-6070 <br />of Counsel <br />Fax 903-+465-6093 <br />Honorable Mayor, <br />Members of the City Council, <br />and City Manager <br />City of Paris, Texas <br />Opinions <br />1400 W. Russell <br />Bonham, TX 75418 <br />903-583-5574 <br />Fax 903-583-9453 <br />We have audited the accompanying financial statements of the governmental activities, the business -type activities, <br />the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City <br />of Paris, Texas (the City), as of and for the year ended September 30, 2025, and the related notes to the financial <br />statements, which collectively comprise the City's basic financial statements as listed in the table of contents. <br />In our opinion, the financial statements referred to above present fairly, in all material respects, the respective <br />financial position of the governmental activities, the business -type activities, the discretely presented component <br />unit, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2025, and the <br />respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary <br />comparison schedule for the General Fund for the year then ended in accordance with accounting principles <br />generally accepted in the United States of America. <br />Basis for Opinions <br />We conducted our audit in accordance with auditing standards generally accepted in the United States of America. <br />Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the <br />Financial Statements section of our report. We are required to be independent of the City, and to meet our other <br />ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the <br />audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. <br />Change in Accounting Principle <br />As discussed in Note I. J., the City adopted new accounting guidance, GAS13 Statement No. 101, Compensated <br />Absences. Our opinions are not modified with respect to this matter. <br />Responsibilities of Management for the Financial Statements <br />Management is responsible for the preparation and fair presentation of the financial statements in accordance with <br />accounting principles generally accepted in the United States of America, and for the design, implementation, and <br />maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free <br />from material misstatement, whether due to fraud or error. <br />