Auditors give Redondo Beach unmodified opinion but flag material weaknesses in FY 2023–24 financial reports

Redondo Beach City auditors presented the draft Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024, to the Finance and Budget Commission on Sept. 11, 2025, and reported they will issue an unmodified opinion while identifying material weaknesses and significant deficiencies in internal controls.

The findings matter because they required several adjustments to the city’s financial statements, and they point to control and process improvements the city needs to adopt. Commissioners voted to “receive on file” the draft report after the auditor’s presentation.

Bob Callahan, engagement partner and the audit lead, said the firm’s audit offers “an unmodified opinion,” the highest audit opinion, after the city and auditors made correcting journal entries. He told commissioners the audit identified three areas rising to the level of material weakness and two significant deficiencies, and that staff had already corrected the items that would affect the opinion. “Any of the comments I’m talking about, they’ve already been fixed or repaired…