North Miami auditors give city a clean opinion on fiscal 2024 with recommendations on receivables and federal award reporting

The city of North Miami received an unmodified (clean) audit opinion for the fiscal year ended Sept. 30, 2024, according to the independent auditors who presented results to the City Council. Auditors said the city ended the year with increased net position and no reportable findings on internal control or compliance with the Uniform Guidance.

The unmodified opinion indicates the auditors did not identify material misstatements in the financial statements, and there were no findings on compliance with federal program rules, auditor Gene Borno said. The auditors recommended two management actions to strengthen financial reporting: tighter review of commercial accounts receivable and collectible accounts, and improved presentation of the schedule of expenditures of federal awards and state assistance (related to ARPA encumbrances), Borno said.

Auditors Anthony Brunson, CPA, and Gene Borno walked council members through the city’s financial position and operating results. Brunson said the audit covered all major funds, enterprise activities such as water and sewer, grant compliance and the American Rescue Plan (ARPA) funds. Borno said total governmental‑activity assets at year end were about $242 million, liabilities about $181 million and a net position near $76 million. Business‑type activity net position was reported at about $78.5 million, the auditors said.

City Chief Financial Officer Miss Reyes confirmed to the council that the ARPA funds had been encumbered rather than expensed in one instance as a technical reporting correction; the auditors’ recommendation on the schedule of expenditures of federal awards reflected that clarification. Borno told the council that property‑tax revenue rose substantially — driven by higher taxable values inside city boundaries — and that the general fund ended the year with a $3.5 million surplus and a fund balance around $21 million.

Council members thanked staff for improving financial controls and restoring clean audit reports; Mayor and council members credited prior and current administrations and the finance team for achieving the result. Council members asked about longer‑term obligations such as compensated absences; auditors said those amounts are disclosed in the financial‑statement notes as “compensated absences” for both governmental and business‑type activities and are included in the audit.

The auditors closed by saying they would share the two management recommendations with staff and that the city had no unresolved audit findings for fiscal 2024. The council did not take a formal vote on the audit presentation; the auditors’ report was accepted for the record and staff said they would work on the two recommendations.