Boca Raton reports $1 billion net position and clean audit; investment yield rises to about 3%

Carlisha Jenkins, accounting manager in the city’s financial services department, presented the Fiscal Year 2023 Annual Comprehensive Financial Report (ACFR), saying the city ended the year with roughly $1.4 billion in total assets and about $446 million in liabilities, including roughly $68 million in bonds payable. "We ended the year with a net position of approximately $1,000,000,000, of which $268,000,000 was unrestricted," Jenkins said.

Jenkins told the council governmental activities net position increased by about $22.3 million, driven largely by an approximately $13.7 million increase in property tax revenues; business‑type activities rose by about $5.1 million, mainly from higher charges for services and investment earnings. She also noted the city collected nearly $109 million in property taxes and about $84 million in other taxes during the fiscal year.

Moises Ariza, partner at Markham LLP, summarized the independent auditors' report for the year ended Sept. 30, 2023, and stated the firm’s opinion: "the financial statements are fairly presented in all material respects," a clean (unmodified) opinion. Ariza advised council members to consult the management's discussion and analysis (MD&A) section for a concise fiscal narrative and the independent auditor's report for details of the engagement.

Hermis Garzon, senior audit manager, reviewed required compliance testing and Yellow Book items. He told the council auditors found no material weaknesses or significant deficiencies in internal controls and reported no findings from testing of the city's federal and state programs selected for single‑audit procedures. Garzon noted the city expended more than $750,000 in federal awards during the year and that the audit tested the federal Highway Planning and Construction program and the state Beach Management Funding Assistance program.

Treasury Manager Conahan presented the annual investment report and described the portfolio's policy aims—safety of principal, liquidity and yield. Conahan said the portfolio composition was largely unchanged from the prior fiscal year and that the city realized roughly a 3% return in actual coupons and interest this year, a notable improvement from the prior year’s results: "This year, we earned over 3% in terms of actual dollars received," he said, while noting mark‑to‑market gains and losses and that some unrealized fluctuations remain until positions are sold.

Council members thanked staff for the reports and noted the finance team’s recognition: the city received the Government Finance Officers Association budget award for the 40th consecutive year. The presentations concluded with staff and auditors offering to take follow‑up questions and provide further documentation in the ACFR.