Cities Receive Request from Attorney General on Annual Audit Information
This week, Attorney General Ken Paxton issued a press release stating his office has requested financial documents and information from over 1,000 Texas cities related to the two most recent annual financial audits for the city and the corresponding financial statements. With the passage of S.B. 1851 during the 2025 legislative session, the attorney general now has the ability to determine that a city has not complied with the annual audit requirement or the requirement to file a financial statement on the audit with the city secretary within 180 days after the last day of the city’s fiscal year. Should the attorney general’s office determine that a city failed to comply with these requirements, the city would be unable to adopt a property tax rate exceeding the no-new-revenue tax rate for the tax year that begins on or after the date of the attorney general’s determination. More on S.B. 1851 can be read here and here.
The request asks the city official recipient to either provide information on the audit to the attorney general through a DocuSign data entry link or respond to a request under the Texas Public Information Act (PIA) with the relevant information.
Some of these emails have come from a DocuSign system email address. According to the emailed requests, city officials receiving the emails are to direct all correspondence relating to the request to OAGMunicipalAuditReview@oag.texas.gov.
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