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Council receives and files Carpinteria annual comprehensive financial report for FY 2023—24
Summary
Auditors issued an unmodified opinion on the City of Carpinteria’s FY2023-24 Annual Comprehensive Financial Report; council received and filed the report noting positive fund balances and reserves that partly meet policy targets.
Carpinteria City Council on Feb. 3 received and filed the city’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024. The financial statements were audited by Rogers, Anderson, Malody & Scott, which issued an unmodified (clean) opinion.
Key findings from staff and audit presentation: the city’s combined fund balance was $22.5 million at fiscal year end, an increase of $1.7 million from the prior-year budgeted fund balance. The general fund finished the year with $16.2 million in balance; staff reported assigned and committed reserves including $1.2 million restricted for a pension stability trust, $1.1 million committed for major asset replacement (meeting the $1.0 million policy target), $5.3 million assigned for economic uncertainties (meeting the policy target equal to 40% of general fund operating expenditures) and $833,000 set aside for general-reserve special projects (below the $1.0 million policy target). Measure X funds were shown with an assigned balance of $5.2 million.
Auditor conclusions and internal control: auditors noted the ACFR conforms with generally accepted accounting principles, and they issued a clean opinion. The audit letter described the work on internal control and flagged a commonly seen significant deficiency for smaller finance departments: segregation of duties challenges driven by turnover and limited staffing. Auditors recommended continued mitigation through procedural controls and use of accounting software functionalities; auditors did not identify any material weakness. The audit letter also described required communications about significant estimates (pension and OPEB valuations) and noted implementation of GASB changes.
Council action: after presentations from staff and the auditor’s manager, the council opened public comment (none) and moved to receive and file the ACFR. The motion carried by voice vote.
Follow-up: staff indicated the full ACFR is posted on the city website and that the city will continue to work on internal controls and staffing as part of routine financial operations and future budget cycles.
