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Auditors give Deltona a clean opinion; commission asks ethics office to weigh in on related-party disclosures
Summary
External auditors delivered an unmodified (clean) opinion on Deltona's FY 2024-25 financial report but flagged timing and capital-asset reporting recommendations. Commissioners requested an outside ethics opinion after auditors described non-material related-party disclosures; the commission voted 6-1 to have the city attorney seek that opinion.
Tim Westgate, audit partner with Pervis Gray, told the Deltona City Commission on Thursday that the city's financial statements for the year ending Sept. 30, 2024, received an unmodified (clean) opinion and that auditors found no material weaknesses in internal control.
"We are pleased to say ... we issued a clean opinion, an unmodified opinion," Tim Westgate said. He told commissioners the audit package had been distributed and that the firm would recommend improvements to the fiscal close timeline and the city's capital-asset reporting process to reduce future workload.
The auditors also reviewed compliance items required by state statute and federal grant rules and said the city's reporting met those obligations. Lori Walker, supervising manager on the engagement, noted the audit began later in the close cycle this year and recommended streamlining the close to meet earlier target dates.
During questions, commissioners raised a related-party disclosure shown as Note F (page 92) in the annual comprehensive financial report. Westgate said auditors identified two non-material items they considered related-party disclosures during fieldwork: (1) confirmation-of-invoices interactions involving the clerk's office, and (2) the processing of employee child-support withholdings that flow through county systems. "During the fiscal year, no material transactions requiring disclosure occurred between the city and the other governmental entity," he said, reading the note.
Commissioner Emma Santiago moved to authorize the city attorney to request an official opinion from the Florida Commission on Ethics or the state attorney about whether the disclosed relationships create disqualifying conflicts for any commissioner; Commissioner Knobic seconded the motion. After brief public comment, the motion carried 6-1.
City Attorney staff explained the typical path for conflict analysis and that many related-party situations are routine and situational. The requested opinion is limited to the matter identified in the audit record, the commission said.
What happens next: The city attorney will pursue a formal opinion request as directed by the commission. The auditors said their review found no material noncompliance with reporting requirements and no control deficiencies rising to the level of a material weakness.
Ending: The commission thanked the auditors for the work. Commissioners asked staff to return with any follow-up items that the opinion or additional disclosures might require.
