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FY2025 audit: Stuart receives clean opinion but Fire Department fund qualification noted
Summary
An external auditor gave Stuart a clean FY2025 opinion with one qualification related to the Fire Department fund's documentation; the General Fund shows about $3.9 million unassigned while utility funds ran negative operating cash flows, prompting audit recommendations.
An independent audit of the Town of Stuart's FY2025 financial statements returned a clean opinion, with one standard qualification tied to the Fire Department fund, the council heard May 20.
Scott Wickham of Robinson, Farmer, Cox Associates told the council the Fire Department’s internal checking accounts and receipts were not fully documented within the Town audit, producing the single qualification. Wickham said the General Fund remains strong, with approximately $3.9 million in unassigned fund balance. He reported that the Water and Sewer funds experienced negative cash flows from operations during the year, reinforcing the need for adjustments to utility rates.
Wickham reviewed four findings and associated recommendations: (1) proposed period adjustments to catch up accruals and receivables; (2) limited segregation of duties, a common issue for small staffs but mitigated locally by council review of checks and new financial software; (3) bank reconciliation inaccuracies caused by "ghost transactions" carried over during the QuickBooks transition; and (4) ensuring all accounts comply with the Security for Public Deposits Act (SPDA) quarterly reporting. Town management confirmed SPDA reporting is current for Q1 2026 and staff are working with the software vendor to clear the ghost transactions.
No formal council action was taken at the presentation; the audit's findings will inform finance office work plans and future budget discussions.
