Deltona audit: external auditors issue clean opinion, note strong fund positions

External auditors Pervis Gray presented a clean, unmodified audit opinion Monday on the City of Deltona’s financial statements for the fiscal year ending Sept. 30, 2024, and highlighted improved pension funding, positive increases in major funds and nearly $30 million in grant awards in the past year.

Tim Westgate, audit partner at Pervis Gray, told the Deltona City Commission that the firm issued an unmodified opinion and did not identify any material weaknesses or findings that would require reporting under Government Auditing Standards. The audit covered financial reporting, compliance with Florida statutes and federal single‑audit requirements for major federal programs, Westgate said.

Westgate cited several financial highlights: fund balances in the city’s major funds increased during the fiscal year; the general fund’s fund balance was reported as $778,000,000 in his presentation; the water and sewer fund maintained strong working capital; and the city’s employee retirement fund increased net position by $7.8 million to a reported funding level of about 86 percent.

Auditors also reported that staff brought forward a number of federal and state grants over the past year, including grants for roadway elevation projects, a $750,000 city hall generator award, and approximately $22 million toward the Fisher Border plan; the city manager said the city had received nearly $30 million and anticipates another $3 million if the state budget is signed.

The auditors recommended a few management improvements: (1) streamline the period‑end and closing routines to shorten the reporting cycle (the 2024 reporting process took longer due to staff turnover and use of outside assistance); (2) implement an IT risk assessment program to address cybersecurity risks and resilience; and (3) finalize documentation on the accounting change standard adopted during the year.

Commissioners asked whether the audit identified discrepancies or signs of book misstatement; Westgate said the auditors found no evidence of altered books and would have reported such matters. Questions about financial distress were put to the auditors; they said the audit did not show deteriorating financial condition or imminent going‑concern concerns. The auditors noted the city participates in the Government Finance Officers Association reporting program and that the city was expected to receive that award again.

Commissioners and staff praised the finance team for cooperation during the audit. Finance Director Robin Hayes and Deputy City Manager John McKinney were named in the presentation for their roles in the process.

The audit will be posted in the city’s formal records. Auditors noted remaining operational recommendations are below the threshold of formal findings but worth management attention.