Highland Beach posts larger net position, receives clean audit for FY 2024

The Town of Highland Beach received a clean audit opinion for the fiscal year ending Sept. 30, 2024, with auditors reporting the town’s net position rose 11.7%, from about $26.3 million to roughly $29.4 million.

The independent auditor said the increase in net position reflected gains across major funds, including the general fund and enterprise funds, and growth in town assets tied largely to completion of the new fire station. The auditor also reported one audit finding concerning the town’s method of capitalizing certain assets; the town adjusted its capitalization treatment at the auditors’ request.

The auditor, identified by the audit firm Nolan Holt Minor, told commissioners that the town’s overall revenues for the year were about $27.1 million and that total expenses were roughly $24 million across governmental and business-type activities, producing an increase in net position of about $3.3 million. The auditor reported fund-level details: the general fund’s ending balance increased; the billing department fund ended the year at about $3.6 million; and water and sewer funds together finished at several million dollars, sustained in part by rate adjustments and investment income.

The presentation attributed the asset growth primarily to the recently completed fire station and noted the town issued a $4.5 million Synovus Bank loan to finance fire station construction. Auditors said one water loan was retired during the year, reducing debt-service obligations for enterprise activities.

Commissioners and the town manager praised staff work and internal controls. Mayor Moore and others credited “tone at the top” and department heads for maintaining records and controls that led to the clean opinion. The auditor described the one finding as a difference of accounting practice rather than an amount-related problem: auditors recommended grouping certain items for capitalization, which changed how some asset costs were recorded but did not indicate misappropriation or material misstatement.

The auditor said the FY 2024 audit was completed within state deadlines but later than the town preferred because of “multiple and unique” transactions tied to the fire station project; the town expects the FY 2025 audit timeline to improve.

The presentation concluded with the auditor’s written summary that “the Town of Highland Beach continues to demonstrate sound financial management, strong fiscal discipline, and strategic investment in critical infrastructure and public safety.”