Nine Months Late, Century Audit Shows ‘Deteriorating Financial Condition; $9.7 Million Shortfall

April 2, 2026

The annual financial audit for the Town of Century has finally been completed for the fiscal year ended September 30, 2024. The newly released audit was due to the State of Florida by June 30, 2025, and had not been received and posted online by the Florida Auditor General as of April 1, 2026.

The report, prepared by HCT Certified Public Accountants & Consultants, LLC in Hollywood, Florida, highlights significant failures in internal controls and a “deteriorating financial condition” as defined in state statutes regarding a determination of financial emergency.

As of September 30, 2024, the town’s governmental activities faced a deficit of $2.0 million, while its unrestricted net position sat at a $9.7 million deficit.

Deteriorating Financial Condition

The audit, dated March 13, 2026, details a series of new and recurring “material weaknesses” and “significant deficiencies” that have plagued the town’s accounting for several years.

The audit found the town shows signs of “deteriorating financial condition” per Florida Statutes, including improper cash management, a lack of long-term planning, and a lack of analysis of existing tax rates and fee structures for proprietary operations (water, garbage, gas). The finding has been noted in town audits dating back to 2017.

At the end of 2023, the general fund owed the special revenue fund about $2.8 million, and the natural gas fund owed $212,000. In June 2018, the town council approved a repayment plan of $300 per month for the interfunds loans. The general fund and natural gas fund have deficit net positions at September 30, 2023, and operating losses were reported by by the natural gas and the water and sewer funds for the years.

In response ,the town has increased water and sewer rates, as well as increased the garbage rates. In addition, “there will be a natural gas rate study forthcoming.”

Why was the audit eight months late?
“We have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements,” the auditor noted.

HCT said they were “unable to obtain sufficient appropriate audit evidence… related to transactions recording, processing and financial statements reporting; as well as key controls in significant transactions cycles such as revenues, accounts receivables, cash and banks, collections, fixed assets, purchases, accounts payables; funds accounting and interfund balances.”

Town officials said on Tuesday night that they are beginning work on the next audit for the fiscal year ending September 30, 2025, which is due to the state by the end of June 2026.

Summary of Audit Findings and Town Responses

Auditors outlined several critical areas where the town lacks proper financial oversight:

New Fiscal Year 2024 Findings

  • Bank Reconciliation Controls: The town lacks established controls to ensure bank reconciling items, such as checks and deposits, are cleared and recorded in a timely manner.
    • Town Response: Officials acknowledged the lack of written controls and stated they will set up monthly monitoring procedures for items over 30 days old.
  • Lack of Segregation of Duties: A “material weakness” was identified because the same personnel are involved in recording, processing, and reporting transactions like payroll and vendor payments.
    • Town Response: The town noted that limited personnel makes segregation difficult but stated they would work to devise a system once a new clerk is hired.
  • Payroll Processing Reconciliations: There are no established controls to ensure correct pay rates are applied or that manually input hours are reconciled before checks are issued.
    • Town Response: The town described its current use of a time clock app and a two-signature requirement for checks.
  • Inadequate Accounting Software: The town’s use of QuickBooks is deemed inadequate for producing entity-wide financial statements and lacks control over posting journal entries.
    • Town Response: The town admitted personnel are currently not “capable or knowledgeable” of producing such statements with the software but do provide monthly reports to the Council.
  • Vendor Management: There is a lack of oversight regarding who can add or modify vendor information, creating a risk of improper payments.
    • Town Response: Management agreed and stated they would consider this when formalizing written duties and segregation roles.
  • Depreciation Calculations: For years, the town has relied on external auditors to calculate annual depreciation rather than performing the task internally.
    • Town Response: The town confirmed this dependency and stated they intend to contract this task out for future audits.

Repeated Prior-Year Findings

The auditors also pointed to several major issues from 2023 remain unresolved:

  • Cash Management: The town failed to maintain adequate funds for customer deposits and debt service reserves, specifically in the Natural Gas Fund.
    • Town Response: The town plans to open and fund separate deposit accounts once Council approval is obtained.
  • Account Reconciliation: Significant audit adjustments were required because the town did not properly reconcile general ledger accounts, including grant revenue and interfund activity.
    • Town Response: The town expects new “all-inclusive” software to eliminate the need for manual journal entries.
  • Capital Asset Tracking: The town has not completed a physical inventory of its assets or consistently tagged them for tracking.
    • Town Response: Management claimed assets were logged and accounted for at the end of the last fiscal year.
  • Financial Condition: The town shows signs of “deteriorating financial condition” per Florida Statutes, including improper cash management and a lack of long-term planning.
    • Town Response: Officials pointed to recent water and sewer rate increases and the installation of remote-read meters to ensure accurate billing.
  • Audit Filings: The town failed to meet state-mandated deadlines for submitting its annual financial reports for the 2024 fiscal year.
    • Town Response: Management is developing standard operating procedures and implementing software to help with the timeliness of financial processes.

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Written by William Reynolds · Filed Under TOP STORIES