City receives clean audit opinion for FY2024; auditors flag control and reporting findings

City Chief Financial Officer Natalia Ekra and external auditors Carr, Riggs & Ingram presented the City of Daytona Beachs Annual Comprehensive Financial Report (ACFAR) for the fiscal year ending Sept. 30, 2024, at the Aug. 20 commission meeting. The auditors issued an unmodified (clean) opinion on the basic financial statements but reported several audit findings and management-letter comments for the commission to review.

Auditor Lindsay Eviles summarized major takeaways: the citys net position increased in 2024 versus 2023 (governmental activities up to roughly $129 million; business-type activities up to roughly $210 million), driven in part by higher property values and investment income. The general fund ended with a positive net change and an unassigned fund balance that exceeded the citys 10% reserve policy. The Police and Fire Pension Trust Fund showed a net appreciation in investments and an estimated funded ratio of about 74% as of year-end. The report contains the managements discussion and analysis (MD&A), full financial statements, notes and required supplementary information.

The auditors also described findings and adjustments uncovered during testing. Material but corrected issues included lease discounting on a long-term lease (a calculation error produced an adjustment of about $374,000) and past-period timing differences on revenue. The auditors reported other findings including an overstatement of compensated-absence accruals (about $149,000), the need for stronger documentation that city staff reviewed and approved required grant quarterly and closeout reports (two single-audit findings repeated from the prior year), and the long-standing unexpended building-permit fund balance issue under a state statute that prescribes how permit fees should be spent or rebated. The auditors noted some findings had already been corrected during the year.

The auditors identified no material weaknesses; findings were presented as control deficiencies and single-audit items where federal or state major programs were tested. The auditors also flagged upcoming Governmental Accounting Standards Board (GASB) changes of interest to finance staff, and a few subsequent events (such as hurricane Milton and a 2025 taxable revolving line of credit) that are disclosed in the report but fall after the fiscal year closing date.

Commissioners asked for the audit report to be provided on the council chambers screen in readable format in future presentations. CFO Ekra and staff thanked the finance team for completing the 230-page ACFAR and said the city will follow the auditors' recommendations on documentation and controls.

No formal vote is required for receipt; the presentation provides transparency to the commission on the citys financial condition and internal-control matters.