Ormond Beach audit shows clean opinion, stable reserves and no federal grant findings

Zach Shallowfore, partner with James Moore & Company, told the Ormond Beach City Commission that the city's financial statements for the fiscal year ended Sept. 30, 2025, received an unmodified opinion, meaning the auditors found the statements reliable.

"We expressed an unmodified opinion, which is the best that we can issue and effectively means that the numbers can be relied upon," Shallowfore said during the commission's presentation of the audit.

Shallowfore said the city also met the threshold for a federal and state single audit this year and that auditors found no findings or comments in their compliance testing of major grant programs. He added that separate audit reports for the Community Redevelopment Agencies (CRAs) were also clean.

On reserves, the auditor highlighted that the city's unassigned and assigned fund balance measured roughly 20% relative to current-year spending, above the commission's 15% minimum policy and modestly better than the government finance officers association's guideline. The presentation noted a modest year-over-year decrease in the general fund tied in part to draws from economic development fund balances.

Shallowfore reviewed enterprise funds and pension obligations, saying the city's water and sewer fund showed a planned negative trend tied to capital investments, and that the financial statements disclosed a net pension liability of about $12,000,000, presented for informational purposes based on actuarial valuations.

Commissioners praised staff for the timeliness and thoroughness of the audit. Commissioner Travis Sargent and others singled out Finance Director Kelly McGuire and Assistant Finance Director Chris Boyle for efficient work during the process.

The audit presentation closed with auditors offering to answer follow-up questions; no formal action was required of the commission at the meeting.