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City auditor gives Delray Beach an unmodified opinion for FY2025; one recommendation on payroll system
Summary
CBIZ CPAs presented the city's Comprehensive Annual Financial Report for the year ended Sept. 30, 2025, giving an unmodified (clean) opinion. Auditors highlighted improved net position, noted federal awards tested in a single audit, and recommended completion of a new payroll module.
Moises Ariza of CBIZ CPAs presented the City of Delray Beach's Annual Comprehensive Financial Report for the fiscal year ended Sept. 30, 2025, and delivered an unmodified audit opinion, which the auditor called the only opinion a municipality wants to receive.
The audit report showed a government-wide net position of about $521 million, with governmental activities reporting approximately $335.3 million and business‑type activities about $186.2 million. The city's change in net position for the year was roughly $61.8 million, and the general fund held an unassigned balance of about $49.1 million as of Sept. 30, 2025. Ariza also noted capital outlays of roughly $38.9 million reported on the modified accrual statements.
Ariza reviewed footnotes that readers should note: the city had issued $148 million in water and sewer revenue improvement bonds in late September 2025, and subsequent to year end the commission approved $32.1 million in public improvement revenue bonds and awarded a construction contract for a golf-course renovation. He also summarized the single-audit schedule of federal awards and said the city expended about $6.9 million of federal awards during the year; the auditors tested a major program (about $5.4 million) tied to U.S. Department of Transportation highway planning and construction and reported no compliance exceptions.
The audit team identified a single recommendation tied to the rollout and control environment for a new payroll module; staff told the commission the module was expected to be implemented by calendar‑year end 2026 and the auditors recommended follow-through on that implementation and related internal‑control items. Commissioners asked about timing of deliverables, the trend in fund balance, and how long repeat recommendations had been outstanding; Ariza acknowledged the matter had been under review since earlier years and said the limited number of findings, together with a clean opinion, was a positive result.
The commission accepted the audit presentation and thanked staff and CBIZ CPAs for their work. The auditor's comments and the ACFR will be available to the public as part of the city's financial reporting.
