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North Miami posts unmodified FY2025 audit; auditors flag lease accounting finding and collection work to do
Summary
The city’s FY2025 audit returned an unmodified opinion with one internal-control finding tied to lease accounting. Auditors recommended stronger accounts‑receivable collection practices and quarterly reconciliations of federal/state award schedules.
City auditors reported an unmodified (clean) opinion on the City of North Miami’s FY2025 financial statements and uniform guidance compliance, but identified one internal-control finding relating to lease accounting and prior‑year adjustments. Auditor Anthony Brunson told the council the finding concerns capitalization and amortization of leases in accordance with new rules and recommended staff correct accounting and related processes.
Key financial takeaways the auditor presented included approximately $28 million in asset growth (a 12% increase), a general‑fund surplus year-to-date and an improved net position (an increase from $76 million to $95 million in net assets). The audit also flagged accounts‑receivable collection and allowance practices as an area for continued attention, especially given new units coming online and estimated receivables outstanding.
Brunson said the city continues to qualify as a low‑risk auditee for federal and state awards, reflecting no findings over the prior three years. Council members pressed staff and the auditor about collection practices for utility receivables and the need to reconcile federal awards at least quarterly.
Next steps: staff will work with finance to address the lease accounting finding, pursue improved receivables collection practices and increase reconciliation cadence for federal/state awards as suggested in the audit.
