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Sebastian receives clean FY2024 audit; report notes control gaps and cleared findings
Summary
Auditor delivered a clean opinion on the fiscal year ended Sept. 30, 2024, noting revenue increases, ARPA expenditures, airport grant‑funded assets, and a small number of control findings tied largely to staffing gaps.
A partner from auditing firm Carr, Riggs & Ingram told the Sebastian City Council on April 9 that the city received an unmodified (“clean”) audit opinion for the fiscal year ending Sept. 30, 2024.
“My name is Christine. I am the partner that oversaw your financial statement audit,” the auditor said, summarizing results. The general fund showed an increase in revenues of about $1.2 million—driven mainly by property taxes—and expenditures rose roughly $780,000, largely from wages and insurance. The audit reported a net addition of approximately $808,000 to fund balance, the auditor said, leaving an unassigned fund balance roughly equivalent to eight months of operating expenses.
The audit included a single audit with three findings tied to federal grant controls; the auditor said the findings were not compliance failures—“it's not that you did anything wrong with the grant funds, but you're required to have the controls in place.” Two other matters were identified as year‑end or process items, including a cutoff entry related to recognizing receivables and a bid‑bond documentation issue. The auditor noted seven of nine prior‑year findings had been cleared.
The report also addressed special‑purpose funds: the community redevelopment area (CRA) fund had a net change of about $245,000 and the ARPA fund showed $1.6 million spent during the year with $1.1 million remaining as of Sept. 30; ARPA obligations had to be in place by December and funds must be spent by December 2026. The airport enterprise fund reported a $3 million increase in fund balance that is primarily grant‑funded and recorded in capital assets rather than cash available for operations.
City officials and the auditor said many of the findings related to staffing gaps while the city lacked a permanent finance director and procurement director for portions of the year; staff have since filled those roles and begun clearing remaining items. Finance Director Brian Stewart was cited by the auditor as having the information needed to file state reports on time.
The auditor recommended routine improvements to grant‑report controls and year‑end revenue recognition; staff said they are addressing the items. No formal council action was required beyond receipt of the audit presentation.
