Audit committee recommends council accept Redondo Beach FY2024 financial report after auditors identify accounting weaknesses

The Redondo Beach Audit Committee voted unanimously to recommend that the City Council accept the city's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024, after independent auditors issued an unmodified audit opinion while flagging several material weaknesses and significant deficiencies.

The recommendation followed a presentation by Robert "Bob" Callanan, audit partner at CliftonLarsonAllen LLP (CLA), and remarks from Stephanie (staff member, finance department), who said the finance team and auditors had worked to clean up long-standing accounting issues. "This was our first year working with the city," Callanan said, adding that first-year audits typically uncover legacy issues and a learning curve for both auditors and staff.

The finding summary: CLA issued an unmodified (clean) opinion on the financial statements but identified three material weaknesses and two significant deficiencies. The largest adjustments reported included about $3.4 million in grant receivables and related unavailable/unearned revenue that were written off or adjusted, a large reclassification of construction-in-progress (CIP) projects (including roughly $18 million of…