Independent auditors give Flagler County a clean FY2025 opinion; two minor recommendations noted

Zach Shallor, partner at James Moore & Company, told the Flagler County commission on June 8 that the firm issued an unmodified opinion on the county’s FY2025 financial statements, meaning the auditors found the statements to be fairly presented in all material respects. The audit covered the countywide financial statements plus standalone audits for each of the five constitutional officers.

Shallor said the firm performed federal and state single-audit procedures over major grant programs and found no compliance matters that required reporting. Under Government Auditing Standards, the firm also looks for internal-control issues affecting financial reporting; none rose to the level of material weaknesses or significant deficiencies in this audit.

The presentation highlighted reserve and fund-balance metrics for the county’s general fund and other governmental funds. Auditors said assigned and unassigned fund balance represented roughly five months of countywide general-fund spending; auditors referenced the Government Finance Officers Association (GFOA) best practice of a two-month minimum and noted Flagler County’s reserves were “healthy” relative to that benchmark.

Auditors also noted the county’s net pension liability—shown in the financial statements as approximately $91 million—is an accounting allocation from the Florida Retirement System. Shallor clarified this figure is informational under the accounting standard and not a current cash obligation that requires a single lump-sum payment by the county.

Two recommendations were communicated in the management letter and separate required reports: one pertaining to the sheriff’s office and one to the property appraiser’s office. Shallor described both as routine, limited in scope, and largely already implemented or verbally addressed with management. He added that the county complied with state statutes related to investment activity and E911 use that auditors review.

Commissioners asked when the full audit report would be made available; clerk-of-court staff said the annual report will be posted on the Clerk of Court website and the board requested that staff add a direct link to the county’s transparency dashboard so constituents can find it more easily. The audit presentation concluded with auditors offering follow-up support, including comparative examples and technical webinars, as the county plans for FY27.