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Council receives and files city audit for fiscal 2023–24; auditors issue clean opinion, single-audit required
Summary
The city's independent auditors issued an unmodified (clean) opinion on the 2023–24 financial statements and a single-audit for federal awards; council received and filed the reports and staff outlined corrective actions for five audit findings.
The Brawley City Council on Tuesday received and filed the city’s fiscal year 2023–24 audited financial statements, the Transportation Development Act (TDA) funds report and the single-audit covering federal programs.
Finance Director Sylvia Luna told the council the audit was performed remotely and that the auditors issued a clean, unmodified opinion — the highest assurance an audit firm can provide. Auditor Brianna Schulz of Rogers Anderson Mallard & Scott told the council that the financial statements were "free of material misstatement" and that the city’s reporting met required standards; the firm also issued an unmodified single-audit opinion for federal awards.
Highlights presented by staff included a 22% increase in government-wide revenues driven by higher tax revenue, capital grants and interest earnings, while expenses were essentially flat. The city’s general fund reserves grew to $10.7 million, with $8.2 million unassigned and available for operational needs. Business-type funds (water, wastewater, solid waste, airport) reported net positions of $83.9 million, with significant capital-asset investment.
The single-audit noted more than $5.5 million in federal award expenditures and identified the American Rescue Plan Act as a major program. City staff reported five findings in the audit report and presented a corrective action plan: two findings have been completed (bank reconciliation staffing and segregation of duties changes) and two remain in progress; one item related to reporting on federal award schedules still requires consultant assistance.
Council moved to receive and file the annual financial report, approving the administrative step. Finance staff said they are preparing for next year’s audit schedule and aim to begin fieldwork in November with an anticipated completion date in late January 2026. Auditors and staff emphasized continued focus on improving internal controls and timely federal reporting.
