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Largo auditors issue clean opinion; city releases first popular annual financial report
Summary
External auditors told the commission the city received an unmodified opinion for the fiscal year ending 09/30/2025 and reported no material weaknesses; staff also unveiled the city's first popular annual financial report and flagged pension funding issues to be reviewed in July.
Auditors from Car Rigs and Ingram reported an unmodified independent-auditor's opinion on Largo's basic financial statements for the year ending Sept. 30, 2025, and said they found no material weaknesses, significant deficiencies or instances of noncompliance during their government-auditing review.
"We issued an unmodified opinion," auditor John Bromier told the city commission, describing the audit work that began with interim procedures in June and concluded with fieldwork after books closed in September. He said the audit required roughly 200 requests plus additional sampling and acknowledged the support of city staff in responding to those requests.
City staff also introduced a new popular annual financial report, a shorter, nontechnical summary of key figures drawn from the ACFR. Finance staff said the city received the GFOA financial-reporting award for 2024, has applied for 2025, and plans to make the PAFR available on largo.com and at libraries and city offices.
The audit presentation detailed accounting changes tied to new GASB guidance. Staff said implementation of GASB Statement 101 (compensated absences) triggered restatements to beginning balances: roughly $1,000,000 to the primary government, about $184,000 to proprietary funds and about $9,400 to internal service funds, figures shown in the ACFR footnotes.
The commission also heard a summary of the police/fire pension plan's current position: the plan is about 78.8% funded under the plan's funding method, with an estimated unfunded liability of roughly $50,000,000. Staff said the city's contribution to the plan in 2025 was about $9,600,000, representing about 8.5% of reported general-fund expenditures. A dedicated work session on the recent actuarial valuation was scheduled for July.
Mayor (speaker 1) and commissioners praised finance staff and the auditors for a smooth process. Staff encouraged residents who want more detail to consult the full ACFR; the PAFR is intended to provide a concise, readable alternative.
The next procedural step: staff will post the PAFR and continue preparing materials for the July pension work session and the budget process leading into adoption of the annual budget.
