Independent audit finds Lynn Haven financial statements receive unmodified opinion; one recurring audit adjustment noted

City auditors from James Moore (presenter Benny Clark) presented the fiscal year 2024 audit results to the Lynn Haven City Commission, saying the audit yielded an unmodified opinion on the city’s financial statements and no single-audit or state compliance findings. The firm reported a generally healthy fund-balance position and noted one recurring comment tied to significant audit adjustments the auditors made after receiving the city’s initial trial balance.

Why it matters: An unmodified (clean) opinion indicates auditors found the financial statements materially correct under applicable accounting standards. Auditors also reported the city’s general fund reserve met and exceeded common benchmarks.

Key figures and findings: Auditor Benny Clark told the commission the general fund’s unassigned and assigned fund balances totaled approximately $18.7 million at the end of FY2024, representing roughly 79.7% of 2024 general-fund expenditures — a reserve level auditors described as “healthy” and well above several guidance thresholds. Total outstanding long-term debt principal was reported at about $38.9 million with $4.7 million in principal repayments made during the year. Clark explained the single-audit requirements tied to federal and state grants were completed with no findings.

Recurring internal-control comment: Clark described one recurring comment that relates to the need for financial information to be prepared in a way that reduces the number and magnitude of audit adjustments auditors must make after receiving the city’s trial balance. He said staff and auditors will continue to work to address that area and that the comment appears in the internal control and compliance report with a management response included in the audit package.

Commission discussion and follow-up: Commissioners asked for clarification about the recurring comment and the city’s debt reduction progress since hurricane recovery borrowing. Commissioner Vandegrift and staff described prior debt levels and noted the commission authorized a stormwater note payoff; staff said FEMA reimbursements remain under review and approximately $8 million remained unresolved in discussions with FEMA and insurance adjusters. The auditor indicated the audit will be submitted to the state as required and that the CRA standalone audit had no findings.

Next steps: The auditors said the report will be submitted to the state and the finance department will work to address the recurring adjustment items; commissioners also scheduled follow-up finance and budget planning activities for the coming months.