Selma accepts audited 2023–24 financial statements; council forms ad hoc finance review

Selma accepted an audited set of financial statements for fiscal year 2023–24 on May 6 after auditors issued an unqualified opinion, but the meeting produced significant follow-up requests from councilmembers about fund balances, ARPA spending and prior-year payroll reconciling items.

Ryan Jolly, CPA, presented the audit on behalf of the city’s auditors, reporting an unqualified opinion and noting a single-audit because the city’s federal expenditures exceeded the OMB threshold. The auditor said total net position for the citywide statements was about $91.8 million and that the general fund’s total fund balance was just over $21.4 million. He noted the general fund posted a net decrease in fund balance of roughly $838,000 for the fiscal year.

Several councilmembers asked detailed questions about where the budget variances originated and whether one-time federal American Rescue Plan Act (ARPA) funds were used for ongoing payroll expenses. Finance Director Moreno said ARPA had been used for several projects and that some ARPA expenditures noted through April 28 would be reclassified when bond proceeds became available: “That was a matter of removing this as an AJE at 06/30 to make this whole and charge the money to the bond,” she said regarding sewer trunk line costs she said were temporarily charged to ARPA and would be moved to bond proceeds.

Councilmember Robertson asked for more detail on the $838,000 decrease to understand whether it signaled an ongoing structural problem; auditor Jolly and staff said timing, capital outlays, and one-time items (including settlement and project costs) contributed to the variance. The audit report showed enterprise-fund decreases in ambulance, garbage and transit operations, and noted a negative fund balance in the garbage enterprise fund.

Following discussion the council agreed to form an ad hoc finance review: Mayor Robertson and Councilmember Avalos volunteered to meet with Finance Director Moreno and the interim city manager to review the audit details and related fund classifications before reporting back to the full council.

Ending: The council voted to accept the audited financial statements. Staff said they will provide more detailed reconciliations, ARPA accounting documentation, and fund-by-fund explanations to the ad hoc committee.