City auditor issues clean opinion on Titusville FY2024 financial statements

Zach Shallowfore, partner with James Moore and Company, presented the City of Titusville's annual audit for the fiscal year ended Sept. 30, 2024, and said the auditors issued an unmodified opinion that the city's financial statements are "fairly presented in all material respects." The presentation took place March 20 during a special City Council meeting on special recognitions and presentations.

The audit presentation summarized five audit reports included in the annual comprehensive financial report: the audit report on the financial statements, a report on internal control and compliance under Government Auditing Standards, the federal/state single-audit report covering major grant programs, and two state-mandated reports (including a separate presentation for the Community Redevelopment Agency). Shallowfore said the city met baseline state requirements and the additional Governmental Accounting Standards Board (GASB) reporting the city elects to include, and that the city's document is typically submitted to the Government Finance Officers Association (GFOA) for evaluation.

Why it matters: an unmodified opinion means outside auditors found no material misstatement in the statements and that city financial data can be relied on for budgeting and financial decisions. Shallowfore also reported no material internal-control deficiencies or findings in the single-audit compliance testing for federal and state grants.

Shallowfore highlighted the city's general fund and reserve positions. He said the general fund showed about $22.5 million in fund balance at year-end, and that the combined assigned and unassigned (available) reserves are nearly $12.5 million, which he described as roughly a 24% ratio equivalent to about three months of reserves. He noted the GFOA benchmark minimum of two months of reserves and described the city as in a "stable and healthy financial position" by that measure.

The presentation addressed enterprise fund working capital (positive across funds) and long-term liabilities shown on the financial statements. Shallowfore discussed pension and other post-employment benefits (OPEB) liabilities and cautioned that the amounts on the statements reflect long-term actuarial calculations and are a point-in-time view: plan funded ratios rose in the audit period in part because investment returns exceeded actuarial assumptions, and those ratios can shift as markets change.

Council members asked questions about the audit's focus and potential future audit criteria. Member Stogel asked whether the audit primarily confirms that the city did not spend more than it brought in; Shallowfore explained that the auditor's opinion focuses on whether the numbers in the statements fairly present assets, liabilities, revenues and expenses, and that budget compliance testing flags clear overspending. Vice Mayor Cole commended the finance department for producing a clean audit.

No formal council action was taken on the audit during the special meeting; the presentation was informational and staff indicated the annual comprehensive financial report will be available for the council and for GFOA submission.

Ending: The auditors and staff said they are available to answer follow-up questions and to provide more detail at subsequent council meetings or budget discussions.