Auditors give pension plan a clean opinion; board approves 2025 financial statements

The City of Sarasota General Employees Pension Plan received an unmodified (clean) audit opinion for the fiscal year ending Sept. 30, 2025, and the board voted unanimously to approve the audited financial statements.

Daniel Anderson, audit partner with Malden and Jenkins, told trustees the firm performed the audit under generally accepted auditing standards and government auditing standards and issued "an unmodified opinion, which is the highest form of assurance that we can render." He said the auditors found no corrected or uncorrected misstatements and no compliance findings in their testing of contributions, benefit payments and participant eligibility.

Anderson highlighted the plan's fiduciary net position of roughly $192,600,000 and noted disclosures showing a GASB-funded ratio of 87.82% on a GAAP/GASB basis. He also described sensitivity around the plan's assumed investment return (noting management uses 6.2% in the disclosure): if the discount rate rose to 7.2% the net pension liability would drop by approximately $26.7 million, and if it fell to 5.2% the liability would grow toward about $50 million.

Board materials the auditors referenced included the auditor's discussion and analysis and 10-year schedules of net pension liability and contributions. Anderson recommended trustees review the management discussion and analysis (pages 4'8 in the packet) for comparative year context.

Treasurer Strickland moved to approve the audited financial statements; Trustee Thornburg seconded the motion. The chair called for the question and the board approved the documents unanimously.

The board also thanked the audit team and pension staff for producing a clean opinion; the auditors said they look forward to continuing to serve the plan. Next procedural steps are routine posting of approved reports and continuing coordination with actuaries and investment advisers.