Independent auditors give Atascadero an unmodified opinion on FY 2023–24 financial statements

The City Council received and filed the independent audited financial statements for fiscal year 2023–24 following a presentation by the Finance Director and the engagement partner from the audit firm.

Moss, Levy & Hartzheim issued an unmodified (clean) opinion on the city’s basic financial statements and reported no findings in its internal‑control testing under Government Auditing Standards. Finance Director Jerry Rangel told council the city had a strong year: property tax (the largest revenue source) rose about 6.4% over the prior year and sales tax (including Measure D‑20) increased modestly. Transient occupancy tax again exceeded $2 million for the third consecutive year, and permit/development revenues remained robust.

Rangel said general fund reserves (excluding a specified measure) were approximately $1.78 million at year end, equal to about 50% of that fund’s expenditures. The city used some reserves to advance council priorities including contributions toward public safety facilities, the General Plan update and broadband enhancement; remaining committed amounts are included in fund balance and will be used as projects continue.

Council members asked clarifying questions about revenue categories, grant recognition timing and an impact‑fee fund for fire apparatus that shows a deficit balance linked to prior vehicle purchases. Rangel explained some state grant funds are recognized as revenue as they are used, and that a prior ladder/aerial purchase is being paid over time from collected impact fees; replacement funding would come from future fee collections or other sources.

Audit partner Travis Hull told council the auditors tested internal controls and had no reportable deficiencies. The council voted to receive and file the audit as an informational item; no separate ordinance or fiscal appropriation was adopted at the meeting.