City auditor issues unqualified opinion but flags repeated year-end closing deficiency; council delays approval

Ryan Jolley, the independent auditor, presented the City of Parlier’s audited financial statements for the fiscal year ended June 30, 2023, telling the City Council he issued an unqualified opinion stating the city’s books were prepared in accordance with generally accepted accounting principles.

Jolley highlighted the government-wide statements that show the city’s overall net position “just over $65,000,000.” He reported the general fund improved during the year — the audit shows general fund assets of roughly $907,000 and an ending fund net position a little over $605,000, a year-over-year improvement driven by roughly $900,000 of positive results. Enterprise funds (water, sewer, disposal) also reflected increases in net position, Jolley said.

But Jolley also told the council the audit contains one repeat finding in the management letter: a significant deficiency in the year‑end closing process. He described the difficulty as a combination of staffing turnover (including trouble retaining a full‑time finance director) and the need for more timely closing procedures. The deficiency contributed to the audit being issued late; Jolley said the audit covers 06/30/2023 and was delayed in presentation.

Council members and members of the public raised timing and access concerns. Several council members said they had not received the corrected financial package in advance and that the city did not post the audit to the city website in a timely manner. Jolley confirmed a corrected set of pages was sent late the previous day and agreed to provide copies and follow up with staff.

After discussion the council did not vote to accept the report at this meeting. Council directed staff to place the audit acceptance on a future meeting agenda so the council can formally approve it after members have time to review and after staff coordinates availability with the auditor should council have substantive questions. Mayor Alma Beltran said the auditor would likely be asked to return to answer questions at that subsequent meeting.

The audit also includes the single-audit schedule because the city expended more than $750,000 in federal awards; Jolley said no single-audit instances of noncompliance were identified. He also noted historical pension information tied to CalPERS actuarial calculations is included in the footnotes.