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Rolling Hills Estates council receives audit showing modest surplus, no material weaknesses
Summary
Council received and filed the city's audited financial statements for the fiscal year ended June 30, 2024, which auditors issued an unmodified opinion on and which staff said shows a $400,000 operating surplus and small reserve increase.
The Rolling Hills Estates City Council on an unanimous voice vote received and filed the city's annual audited financial report for the fiscal year ended June 30, 2024. City staff said the report shows the city remains in positive financial condition and auditors issued an unmodified opinion.
City staff presenting the audit told the council the report is "the annual comprehensive financial report for last fiscal year" and that it is intended to show whether the city is in good financial condition. The presenter said government-wide financial position increased "by almost $1,300,000" on an accrual basis and cautioned that the figure does not represent a cash increase of the same amount.
The staff presentation said the city's general fund ended the year with an operating surplus of about $400,000. That result reflected roughly $42,000 more in revenues than budgeted and about $356,000 lower expenditures than budgeted; most of the surplus was directed to capital spending, leaving a net reserves increase of approximately $10,000. The refuse enterprise fund carried about $25,000 in cash at year-end, consistent with its pay-as-you-go contract structure.
The presenter told the council auditors found no material weaknesses or significant deficiencies in internal control and issued a clean (unmodified) opinion. The report uses Governmental Accounting Standards Board (GASB) reporting and aggregates governmentwide and fund-level results to show assets, liabilities and net position.
Council members asked whether expected FEMA reimbursements for undergrounding projects were at risk; staff said the city's current grant applications are not on any termination list and that staff have been meeting with Cal OES and FEMA. Staff estimated the city would eventually recover roughly 75% of eligible costs for those FEMA-funded capital projects, according to the presentation.
A motion to receive and file the audited report carried on a unanimous voice vote. The council did not adopt additional policy changes based on the audit during the meeting.
The city manager and finance staff will keep the council informed as reimbursements and capital-billing schedules evolve.
