City auditor gives unmodified opinion, notes steady reserves and $15 million pension liability

Zach Shalifour, a partner with James Moore & Company, told the Ormond Beach City Commission on Feb. 18 that the firm issued an unmodified opinion on the city’s financial statements for the fiscal year ended Sept. 30, 2024, and reported no modifications in related state reports or the separate audits of the city’s community redevelopment agencies.

Shalifour said the auditors also performed a federal single audit of FEMA grant activity and issued a clean opinion on compliance with those grant terms. He described the city’s general fund balance as essentially “flat” over the past four years, ranging near $13.5 million to $14 million, and said assigned plus unassigned reserves equaled about 26% of annual spending — roughly three months of operating expenditures. He noted that the Government Finance Officers Association’s minimum recommendation is two months of reserves and said the city is in compliance with its internal 15% policy.

Shalifour emphasized that proprietary funds (water, sewer, solid waste) vary with capital timing. He said solid waste improved after a timing issue linked to hurricane debris expenses and FEMA reimbursements shifted a previously negative position into a modest positive. He summarized the city’s reported net pension liability at about $15,000,000 and described that figure as an accounting representation rather than an immediate cash obligation, noting the funded ratio moves with market performance.

Commissioners and the city manager thanked the auditors and the finance team, mentioning finance staff Kelly McGuire and Chris Bile by name. Shalifour offered to answer questions and to walk commissioners through any detail in the five separate reports his firm provided.

The presentation finished with no audit comments on internal-control deficiencies and no report modifications to state-required forms.