Auditor: Okaloosa County posts unmodified opinion; restatement limited to housing trust accounting

Okaloosa County’s independent auditors gave the county an unmodified opinion on its annual comprehensive financial report for the year ended Sept. 30, 2024, while noting a single accounting restatement in a housing trust fund.

The auditor said the county’s financial statements “fairly represent the financial position of the County in all material respects in accordance with generally accepted accounting principles,” and reported that a restatement affected the Local Housing Assistance Trust Fund because program income and interest previously had been deferred instead of recognized when earned.

The restatement was self‑detected by county personnel and corrected during the audit, the auditor said, and staff revised the county’s grant policy manual to address the accounting method. The auditor reported no significant deficiencies in internal control and no instances of noncompliance with laws or grant agreements.

Why it matters: an unmodified opinion is the highest level of assurance an auditor can provide and signals that, aside from the technical restatement, county financial reporting met professional standards. County staff and commissioners said the results show improved reserves and fiscal management heading into the budget season.

Key financial highlights presented by the auditor included: - Governmental revenues increased year over year from about $302 million to $331 million, driven in part by recognition of ARPA funds and higher assessed values. - Investment earnings rose sharply, producing more than $22.5 million for the county during the period under audit. - Governmental fund balance for modified accrual reporting was about $253 million, with approximately $36 million in the general fund (about $34 million unrestricted). - Infrastructure surtax and other restricted funds retained substantial balances, including about $54 million in the infrastructure surtax fund and roughly $80 million in TDD funds.

During the presentation, commissioners asked whether the restatement could affect future grant eligibility; the auditor and staff said it should not, because the adjustment was an accounting re‑presentation rather than a compliance failure.

Commission discussion focused on the county’s strong reserve position compared with peer counties, long‑term debt reductions over a 10‑year period, and the role of investment income in recent results. The commissioners said they expected the audit findings to inform the board’s budget policy workshop later the same day.

Ending: The audit presentation concluded without formal board findings or further action; commissioners thanked county staff and the auditors for the work and said the report will feed into upcoming budget discussions.