External auditors give Cape Coral a clean opinion; finance staff review annual reporting and single‑audit results

External auditors from Malden & Jenkins on April 23 delivered an unmodified (clean) opinion on the City of Cape Coral’s fiscal year 2024 Annual Comprehensive Financial Report (ACFR), and city finance staff reviewed the ACFR, the single audit of federal and state grant spending and other reporting responsibilities.

Wade Sanzberry, audit partner with Malden & Jenkins, told council the auditors found no material weaknesses or significant deficiencies in the financial statements and reported no findings in the single audit of federal and state grant programs. He noted the firm performed additional testing on five major federal programs and that the city’s external reporting conformed to generally accepted accounting principles.

City finance presentation: Acting Financial Services Director Crystal Fies and City Auditor Andrea Russell summarized the ACFR and other reports. Russell reiterated the different audit types the auditor’s office performs and emphasized performance audits as a common tool to evaluate city programs. Fies highlighted financial statement structure, GASB standards, and the audience for the ACFR.

Key figures and highlights (fiscal year 2024, as presented): the city reported total net assets of about $1.14 billion; governmental net assets were about $396.6 million and business‑type net assets about $741.1 million. The general fund experienced a $41.3 million increase in fund balance, largely from FEMA reimbursements for hurricane Ian costs; governmental funds as a whole increased by about $106.6 million and business activities’ net position rose by about $65.9 million. The city reported receipt or management of approximately $57 million in federal awards and $20.6 million in state awards during the year and expended about $77.8 million in federal and state grant funds; auditors tested about $70.8 million of those expenditures (about 91%).

Other points: Staff said the city implemented GASB Statement 100 in FY24 with minimal financial statement impact. Finance staff also noted receipt of GFOA recognition and that the city prepares frequent reports beyond the ACFR — monthly, quarterly and on demand — including continuing disclosure for bondholders and reporting for charter schools and pension plans.

What council asked: Council members praised finance staff for transparency, timeliness and the complexity of reporting. Several members asked clarifying questions about trends (housing permits, per‑capita income) and the meaning of fund balance versus cash on hand; staff explained fund balance includes nonspendable items and that some increases reflected timing of reimbursements and capital grant receipts.

Follow up: Staff said they will use observed economic trends in the FY26 budget cycle and continue to provide requested breakdowns and briefings to council.