Oakland Park auditors report clean fiscal 2024 audit; net position rises to $244 million

Oakland Park's external auditors presented a clean audit of the city's fiscal 2024 financial statements to the City Commission, reporting that the city's net position rose to $244,000,000 as of February 2024 and that there were no reportable instances of noncompliance in the single audit, the auditors said during the meeting.

The auditors' presentation was given by Karsheena Allison, partner at Watson Rice LLP. Allison said, "we do have a clean report" and summarized the components of the annual comprehensive financial report (ACFR), which the city prepares in addition to the basic financial statements required under generally accepted accounting principles (GAAP). She told commissioners the ACFR was submitted to the Government Finance Officers Association for consideration of the GFOA Certificate of Achievement.

The audit presentation, led by Director of Financial Services Rhea Rivera and Allison, highlighted multi-year trends in the city's financial position. Allison summarized audited totals showing assets and deferred outflows increased year over year and said the city's net position rose from $213,000,000 in 2023 to $244,000,000 in 2024, driven largely by net investment in capital assets. The auditors' slide deck noted unrestricted net position increased to $56,000,000 from $36,000,000 the prior year, and the restricted portion stood at $10,000,000.

The auditors reviewed revenues and expenditures, reporting that revenues grew to $129,000,024 while expenditures remained relatively consistent, producing a change in net position of $32,000,000. Allison identified public safety as the largest portion of city expenditures. The ACFR includes management's discussion and analysis, notes to the financial statements, budgetary comparison schedules and combining schedules for nonmajor governmental funds to allow for more detailed review of individual funds.

The single audit, required when federal or state funding meets a specified threshold, was completed and produced no instances of noncompliance, Allison said. She also reported that the management letter required under the State of Florida Auditor General contained no adverse matters "that came to our attention." Allison told commissioners the auditors continue to monitor new accounting pronouncements and that the most recent pronouncement reviewed had no effect on the city's statements.

Rivera opened the presentation by noting the city had completed its fiscal 2024 audit and introduced the external auditor to the commission. The presentation included an auditor communication letter to those charged with governance that covers items such as suspected fraud, changes in audit scope or timing, and immaterial matters brought to management's attention; Allison reported none of those items required further action.

The presentation concluded with Allison noting the city's ACFR will be reviewed by the GFOA; the city received the award in the prior year and has consistently submitted the ACFR for GFOA consideration. Allison also noted that the single-audit threshold will change next year (the auditor stated the threshold will increase to $1,000,000), which affects when the single audit is required for federal and state award recipients.

No formal motions or votes on the audit report were recorded in the transcript.