Auditors give Town of Oakland a clean FY2025 opinion, flag recurring segregation-of-duties issue

Carly Freifelder, audit supervisor with Purvis Gray, told the Oakland Town Commission on July 14 that the firm issued an unmodified opinion on the town’s financial statements for the fiscal year ended Sept. 30, 2025, meaning the statements are "fairly stated in all material respects." "We give an unmodified opinion, which is a clean opinion," Freifelder said.

Freifelder said the auditors found no material weaknesses but reported one recurring significant deficiency in internal control: segregation of duties in the town’s small finance, accounting and customer service operation. "The town operates a small finance, accounting, and customer service department and does not have the resources to properly segregate incompatible duties among employees," she said, recommending the town continue to develop staff and reallocate oversight so no single employee has sole control over approving, recording and accounting for transactions.

The auditors said management has made significant improvements on prior recommendations. The report noted that a prior issue concerning improper capital asset disposals had been addressed through new department-level listing and follow-up procedures. Auditors also reported no findings of deteriorating financial condition and no noncompliance with contracts or grant agreements; the town was found in compliance with Florida Statute 218.415 on investment of public funds.

Freifelder summarized financial highlights: overall revenues rose by about $1.3 million (driven by new development on the tax roll, higher property values and an increase in the millage rate from 6.3 to 6.7), while expenditures rose roughly $1.5 million. The general fund’s unassigned balance increased to about 40% of current expenditures (about five months of spending), above the recommended three months. Impact fee and enterprise fund results were also presented: the impact fee fund balance rose modestly and the enterprise fund’s net position increased by roughly $1 million.

The audit letter also outlined upcoming GASB pronouncements (GASB 103 and 104) affecting presentation and disclosures for the 2026 fiscal year. Freifelder concluded by thanking town staff for cooperation and said she expected the segregation-of-duties deficiency to be further resolved in the next audit year.

The commission had no questions and thanked the audit team. The town manager and staff will consider the auditors’ staffing and control recommendations as they finalize budgets and procedures.