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Independent auditor issues unqualified opinion on Lemoores FY 2023-24 financials; council hears pension and fund highlights
Summary
An independent auditor told the Lemoore City Council the city received an unqualified (clean) opinion for the fiscal year ended June 30, 2024, and presented fund balances, pension liabilities and recent accounting classification changes while councilors asked questions about pensions and the golf course.
An independent auditor told the Lemoore City Council on May 6 that the citys fiscal year ended June 30, 2024, received an unqualified opinion and that the financial statements show the city in generally sound financial condition.
The auditor said, "We issued an unqualified opinion on the city's books and records," and highlighted major-line items including a total net position of about $169.7 million, a general-fund total fund balance just over $15.2 million and a net decrease in fund balance of roughly $2.4 million for the year.
City officials and the auditor discussed several items the statement of net position and fund statements disclosed: a large unassigned portion of the general-fund balance ($13.4 million), operating results in enterprise funds (water operating income just over $3.3 million, sewer about $190,000, refuse about $923,000), and accounting changes required by GASB 100 that shifted some funds between major and nonmajor classifications.
The auditor also reviewed pension-related disclosures that rely on CalPERS actuarial inputs. The presentation noted a reported pension liability of just over $18.7 million based on a 6.9% discount rate and included a multi-year schedule showing how that liability may change with discount-rate movements. Councilmember Brewster asked, "With respect to the CalPERS, CalSTRS, are we meeting our pension liability?" The auditor replied affirmative, saying the city is making required contributions.
Council members asked follow-up questions about specific items: the golf course fund (the auditor pointed the council to pages showing that activity and said it operates off lease revenue) and how investment earnings are reported across funds (the auditor said each fund shows its own investment earnings line, and citywide unrestricted investment earnings were shown at about $1.8 million). The auditor also told the council that the city is in compliance with its debt covenants and that there were no disagreements with management during the audit.
No formal council action was taken on the audit report during the meeting; the session was a presentation and Q&A. The auditor closed by thanking city staff for their cooperation in completing the audit.
The audit presentation will be included in the council packet for public review, with more detailed notes and schedules available in the published financial statements.
