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Independent auditor gives Simi Valley a clean opinion on FY2023–24 financial statements; single audit notes one finding
Summary
Vasquez and Company reported an unmodified (clean) opinion on the city’s FY2023–24 financial statements and noted a single significant deficiency in federal compliance tied to the timing of a federal grant reimbursement.
An independent audit firm informed the Simi Valley City Council on May 5 that the city’s fiscal year 2023–24 financial statements fairly present the city’s financial position and that no material weaknesses in internal control were identified.
Linda Narciso, audit partner with Vasquez and Company LLC, told the council the firm issued an unmodified opinion—commonly described as a ‘‘clean’’ opinion—on the city’s basic financial statements and on related supplemental information. Narciso said the firm performed a single audit of federal funds because the city expended more than $750,000 in federal grants and concluded the city qualifies as a low‑risk auditee.
The auditors reported one significant deficiency in the single audit related to a federal program (ALN 16753), an approximately $1 million Department of Justice award for radio equipment. Narciso said the equipment purchase was expended in June 2023 and should have been reported in the FY22–23 single audit; the reimbursement was not received until November 2023 and the grant expenditure was excluded from the prior year’s single audit, producing the finding. Narciso said the item was included in the current year’s audit and no further compliance findings resulted from that program review.
Key financial highlights presented by the auditors included an overall government‑wide net position of about $473 million—an increase of roughly $20.7 million from the prior year—and an unrestricted net position increase of about $18 million. The general fund ended FY23–24 with approximately $78.1 million. The auditors also cited net pension and OPEB liabilities of about $169.4 million and $69.1 million, respectively. Enterprise results showed sanitation generating the bulk of net income at about $14.5 million, waterworks net income of $2.8 million and transit showing a $5.6 million loss before transfers.
Narciso told the council that proposed audit adjustments had been recorded by management, that no disagreements with management required disclosure, and that no irregularities or fraud came to the auditors’ attention during the engagement.
Council members thanked the administrative services and finance staff for what they described as a “very nice clean audit.”
