CRA auditors issue clean opinion; agency posts $83.9 million net position for FY2024

Carlisha Jenkins, deputy chief financial officer for the City of Boca Raton, presented the Boca Raton Community Redevelopment Agency audited financial statements for the fiscal year ended Sept. 30, 2024, and said the statements include the auditor's report, management's discussion and analysis, basic financial statements and notes.

"This the year end audit and process to prepare the annual financial report for the CRA takes a tremendous effort to get to the finish line," Jenkins said. She highlighted that the CRA ended the year with more than $143,000,000 in total assets, including about $47,300,000 in capital assets; total liabilities of $575,000; deferred inflows of $58,500,000 related to Meisner Park ground leases; and a net position of $83,900,000 of which $36,700,000 was restricted.

Jenkins said the CRA collected $21,400,000 in tax increment revenues and approximately $4,600,000 in charges for services during the fiscal year and that the agency showed a positive budget-to-actual variance of roughly $17,500,000, consisting of $2,500,000 more in revenue and $14,900,000 less in expenditures than the final adopted budget.

Hermiz Garzone, senior audit manager for CBIZ CPAs, presented the auditor's report and said the firm issued an unmodified opinion on the CRA financial statements for the year ended Sept. 30, 2024. "In our opinion, the company financial statements referred to above present fairly in all material respects the respective financial position of the governmental activities and the major fund of the CRA as of September 30," Garzone said. He told the board the audit identified no internal-control findings or compliance issues and that the firm's management letter did not note prior-year findings requiring disclosure.

Board members asked staff to explain a change in the way ground leases at Meisner Park are presented in the financial statements. A city finance staff member explained that accounting pronouncements in recent years require certain leases to be recorded on the balance sheet to increase transparency; the CRA now reports an asset for the present value of future lease receipts and offsetting deferred inflows because those receipts are not yet available to spend.

Commissioners also discussed the agency's fund balance and capital project timing. Staff said the year produced a positive change in fund balance of about $15,800,000, yielding an ending fund balance of approximately $35,200,000, and that the sums are intended to support capital projects including infrastructure improvements for a future downtown government campus. Staff described the variance largely as a timing issue tied to project planning and construction scheduling.

No formal board action was taken on the audited statements during the presentation; staff indicated they would include related project allocations and timing in upcoming workshop materials and budget documents.