Sebring council accepts unmodified audit, notes single accounting timing finding

The City of Sebring City Council voted to accept the city's audited financial statements for the fiscal year ended Sept. 30, 2024, after a presentation by CliftonLarsonAllen.

Auditor Julie Fowler told the council the firm issued unmodified opinions on the financial statements and on the city's compliance with statutes regarding investment of public funds. Fowler said the audit identified one internal-control finding tied to the timing of when a transaction was recorded between fiscal years; she said the funds themselves were received appropriately by the city.

Fowler summarized key financial trends: general fund revenue has trended upward, driven in part by a significant increase in ad valorem receipts in 2024, while expenditures increased mainly for capital projects such as a planned fire truck and facility improvements. The general fund decreased about $418,000 for the year, but Fowler said the city had budgeted to use about $2.7 million of fund balance and therefore used less than planned. She reported an ending fund balance of about $11.2 million, with roughly $8.8 million unassigned — approximately six months of expenditures in unassigned balance.

Fowler also reviewed enterprise funds: the water and wastewater fund showed a roughly $1.3 million revenue increase and a $4.8 million net position improvement; the solid waste fund rose to about $3.3 million in revenue and added roughly $870,000 to fund balance, a change the auditor attributed to rate increases and lower fuel and repair costs.

Councilmember motioned to approve the audited statements as presented and the council carried the motion by roll call.

The council record notes the audit firm did not encounter difficulties during fieldwork and that estimates for pension and OPEB liabilities and self-insurance were reviewed with actuaries and considered appropriate. The one internal-control report item was an accounting timing issue rather than a loss of funds.