Pembroke Park auditors expect clean opinion; commission holds proposed millage at 8.5 mills

Auditors told the Pembroke Park Town Commission on June 10 that they will likely issue an unmodified opinion on the town’s fiscal-year financial statements, and they emphasized both progress and remaining internal-control findings.

The presentation, led by the auditors, said the firm has completed substantive procedures and expects a clean audit report while noting seven repeated audit findings and three items corrected since last year. The audit team said a new comment this year concerns a loan-related matter and that significant deficiencies remain around bank reconciliations, year‑end expense cutoffs and capital-asset adjustments.

“Based upon this methodology and the information currently available, the recommendation of a preliminary millage rate of 8.5 for planning purposes was proposed,” the town manager explained as staff outlined budget assumptions tied to the audit. The auditors pointed to roughly six months of reserves — about a 50 percent fund-balance ratio — and said that level is well above minimum GFOA guidance.

Commissioners pressed auditors and staff about collections, outstanding reconciliations and whether current-year revenue shortfalls had been investigated. The auditor said last year’s issues produced audit adjustments that were resolved and that staff reported progress on bank reconciliations during the fiscal year, but he emphasized that the audit examines the fiscal year that ended Sept. 30, 2025; more current internal accounting remains the town’s management responsibility.

After hearing the report and questions, the commission voted to approve filing the audit and authorized the interim town manager to work with the auditing firm on any minor adjustments necessary for timely state submittal. The vote was unanimous.

Why it matters: A clean audit opinion is the primary assurance used by lenders, vendors and state reviewers; the repeated findings and the new loan-related comment highlight operational areas staff must fix even as the town retains a relatively strong reserve position. The commission’s adoption tonight of an 8.5‑mill proposed rate will be advertised on TRIM notices — a ceiling the commission can lower at its September hearings but cannot increase beyond.

What’s next: Staff and auditors said the final audit report, including the management letter with formal recommendations, will follow in the coming weeks. The commission will revisit the tentative and final millage rate at the September budget hearings, when members can adjust the rate downward if later information warrants it.