Audit team says San Diego Community Power nearing completion of FY2025 audit, expects unmodified opinion

SAN DIEGO — Audit partner Kellen Gilbert told the Finance and Risk Management Committee on Oct. 16 that the firm expects to issue an unmodified opinion on San Diego Community Power’s fiscal year 2025 financial statements and that auditors do not anticipate issuing significant deficiencies or material weaknesses.

Gilbert, the lead audit partner on the engagement, said the audit is near completion and that there were no proposed audit adjustments, no disagreements with management and no difficulties encountered that would alter the expected opinion. He noted the audit team is performing standard risk-based procedures, including sampling of customer billings, confirmations of cash and investments, and testing of accrued cost of electricity, a material liability for the agency.

Gilbert reminded the committee of the distinction between management’s responsibility and the auditor’s role, stating that management prepares the financial statements and maintains internal controls while auditors provide an independent opinion based on testing. He said the firm adopted a haphazard sampling methodology for customer billings to avoid bias and that certain GASB pronouncements (GASB 102–104) were adopted during the year but did not materially affect the financial statements.

The auditor also summarized a recent firm reorganization: the practice rebranded and combined with other firms to operate as a larger, national firm; Gilbert said there were no contract, cost or engagement-team changes affecting the audit beyond his taking the lead partner role.

The presentation was a receive-and-file item; no committee action was required.