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Council receives 2024 audited comprehensive financial report showing general fund growth but flagged DIF and advances
Summary
The city's audited 06/30/2024 Annual Comprehensive Financial Report (ACFR) received a clean audit opinion. Staff highlighted a stronger general fund unassigned balance and cash increases but warned of development impact fee deficits and long-term interfund advances that require monitoring.
The Yucaipa City Council received and filed the city's audited Annual Comprehensive Financial Report (ACFR) for the year ending June 30, 2024, during its April 28 meeting. Finance Director Phil White presented the audit highlights and the finance committee's review.
White told council the ACFR earned an unmodified (clean) audit opinion. He highlighted three statements the council typically reviews: the governmental funds balance sheet, the governmental funds statement of revenues and expenditures, and the general fund budget-to-actual reconciliation. "Our general fund looks spectacular," White said, noting the city's unassigned general fund balance increased to about $18 million, up roughly $3 million from the prior year.
White also told the council that total governmental fund balance rose to about $51 million and cash increased by roughly $3.5 million from the prior year. But he flagged concerns: the development impact fee (DIF) capital projects fund showed a $21 million deficit on the governmental funds balance sheet, and interfund advances (loans within city funds) remained elevated at about $17 million, down from $19 million the previous year. White said those long-term receivables are classified as nonspendable until repaid and require monitoring because they can overstate the apparent liquidity of the general fund.
On the income statement, White said the city posted a general fund surplus of about $222,000 for fiscal 2024 and an overall activity surplus of $7.5 million across funds. He reviewed the audited budget-to-actual reconciliation, noting that revenues outperformed estimates by roughly 4% while expenditures were about 10% under budget'a historically tighter margin. White said some underspending reflected services or capital purchases not completed during the fiscal year (for example, Tropical Storm Hillary cleanup moving into the next year and postponed capital equipment buys).
The ACFR also includes a $4.5 million loan receivable associated with an option to purchase property and $4.5 million in advanced grant proceeds listed as unearned revenue for a library grant, White said.
Council voted to receive and file the report. White and staff said they will continue monitoring DIF deficits and interfund advances and will bring budget updates as the city finalizes fiscal-year 2026 budget planning.
No public comment was offered on this agenda item.
