Atlantic Beach receives clean FY2025 audit; pension-funded levels reported as stable

Auditors from Pervis Gray told the Atlantic Beach City Commission on July 13 that the city's FY2025 financial-statement audit received an unmodified (clean) opinion and produced no internal-control findings for the year.

"The audit went very well this year," Kevin Smith, audit director with Pervis Gray, said, noting the audit was completed by the statutory deadline and the firm did not identify management disagreements or issues with accounting policies. Smith said the audit included an internal-controls review and an investments examination required by Florida statute.

Smith reviewed financial highlights: general fund revenues grew roughly $2.1 million from the prior year (taxes accounted for about $1.26 million of the increase), intergovernmental revenues rose in part due to a City of Jacksonville grant for a lifeguard station, and expenditures increased by about $1.3 million. He also noted changes in fund balances and explained that some statement line items involve estimates such as net pension and OPEB liabilities.

The auditors discussed pension performance and funded ratios: Smith reported an approximate 8.53% return for the general employee plan and 8.41% for police in the year under review, with an actuarial discount rate of 6.25%. He said the general employee plan showed a funded percentage around 104% while police was about 92.1%.

Commissioners asked questions about large expenditure items (including the city's payments to Jacksonville for fire services), sources of intergovernmental revenue, and debt service. Smith and staff agreed to provide additional detail where requested.

City Manager Kevin Hogancamp and commissioners thanked the audit team and Finance Director Bridal Purcell for work that led to the clean opinion. The audit was published online for public review and staff said they welcome follow-up questions from the community.

The commission moved on to other agenda items after the audit was accepted; no additional formal action on the audit was recorded in the meeting transcript.