Richard Sesbino, Senior Auditor at BrooksWatson, a Houston, Texas, accounting firm, opened the discussion by thanking the county auditor's office for cooperating in what the external auditor called "a very pleasant experience."

Sesbino quickly got to the heart of the matter, advising the court that the county received an unmodified rating -- the overall highest rating -- and a "clean opinion."

The external auditor seemed impressed that the county had a General Fund reserve ratio of 54% at the end of September. That means the county had built up a reserve that equated to 54% of the county's annual expenditures.

"That's a good healthy position," Sesbino opined.

Fannin County Auditor Alicia Whipple noted that the county's reserves have dropped to 30% now; the county took 2.3 million from the reserves for this budget for the justice center furniture and parking lot.

Fannin County Judge Newt Cunningham remarked that the county is looking for ways to mitigate a shortfall in the next fiscal year.

According to the external auditor, during the fiscal year that ended September 30, 2025, the county experienced an 11% increase in revenue -- mostly from tax revenue -- and a 5% increase in expenses, primarily due to prisoner housing costs, staffing, and the purchase of vehicles.

During that time frame, the county's General Fund increased by $1.5 million.

"Kudos to the county," Sesbino stated.

When pressed for any issues that the audit turned up, the external auditor mentioned timely bank reconciliations, and the strategic separation of duties for heightened control.

"We recommend a good segregation of duties," Sesbino advised the court.

The discussion also covered the $600,000 Road Impact Fee paid by North Texas Municipal Water District to the county, as well as the $600,000 reimbursement from Texas Historical Commission to the county for completion of the courthouse renovation -- with both payments eventually going to cover budget overruns at the Justice Center.

And the audit revealed the significant backlog of minutes that current Fannin County Clerk Jenny Garner has managed to whittle down.

"She has been diligently working on that," Pct. 1 Commissioner Troy Waggoner spoke up in Garner's defense.

Fannin County Criminal District Attorney John Skotnik advised the court to accept the results of the external audit.

"I recommend that you accept it as submitted," Skotnik said.

Commissioners court voted unanimously to accept the audit.

*****

In other business, Fannin County Commissioners Court discussed the final payment of Help America Vote Act (HAVA) invoices in order to qualify for reimbursement from the Secretary of State.

The payment is somewhat unusual in that it has to be submitted by the end of the month -- before the election equipment is delivered -- in order to draw down grant money prior to the deadline.

Fannin County Clerk Jenny Garner secured a $305,000 grant, with the county's share of $31,000 already budgeted to come out of the county's election fund.

"I urge you to approve this," Skotnik advised the court. "We are complying with the law. The money is there; let's not leave it on the table. This is a benefit to Fannin County. This is grant money that will disappear if we don't use it."

Whipple explained the documentation necessary to explain this expenditure to future audits.

Fannin County Commissioners Court unanimously approved the final payment of Help America Vote Act invoices in order to be reimbursed by the Secretary of State.

The special meeting adjourned at 11:25 a.m.