External auditors give Cape Coral unmodified opinion on FY24 ACFR; auditors report no findings in single-audit testing

Malden & Jenkins, the city's external audit firm, reported an unmodified (clean) opinion on Cape Coral's Annual Comprehensive Financial Report for the fiscal year ended Sept. 30, 2024, and the city reported no audit findings in the external auditors' single-audit of major federal and state programs.

Wade Sansbury, audit partner with Malden & Jenkins, told the Committee of the Whole the city received a clean opinion on its financial statements and had no reportable audit findings, material weaknesses or significant deficiencies. "This was our very first year helping out the city with your overall audit process... The back of the report are our compliance reports... I'm very happy to report that we had none," Sansbury said.

Context and key numbers: city staff and auditors reported that Cape Coral received approximately $57 million in federal awards and $20.6 million in state awards during the fiscal year; the city expended roughly $77.8 million in federal and state grant funds with the auditors auditing about $70.8 million (about 91%) of those expenditures as major programs. The city reported total net assets (net position) of about $1.14 billion at year-end, with governmental net assets of approximately $396.6 million and business-type net assets of about $741.1 million (a year-over-year increase of roughly 21%). The general fund posted a net increase in fund balance of about $41.3 million, driven primarily by FEMA reimbursements that replenished the budget stabilization reserve, officials said.

Andrea Russell, City Auditor, reviewed the kinds of audits the city's internal audit office performs and how external and internal audits fit together. She emphasized the office's focus on performance audits while noting the office can also perform compliance and information-technology audits.

Other technical notes cited in the presentation: the city implemented GASB Statement No. 100 for accounting changes and error corrections during FY24 with a minimal effect on the statements; external auditors performed single-audit testing for five major programs and found no issues with management of those grant funds; the city continues to submit required schedules (SEFA) and to comply with federal reporting requirements.

Recognition: finance staff said the city earned the Government Finance Officers Association (GFOA) Triple Crown award for excellence in budgeting and financial reporting (awarded to a limited number of governments in the U.S. and Canada). City finance staff also briefed the council on the scope of routine and on-demand reporting they produce, including the ACFR, single-audit schedules, continuing-disclosure filings related to municipal bonds, and monthly/quarterly reports for the charter school.

Ending: Council members praised staff for timely reporting and the clean audit results. Staff said they will continue to maintain reporting schedules, provide required disclosures, and return with additional budget and reporting items as planned.