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Tehachapi audit: FY2024 receives unmodified opinion; single-audit of federal grants still pending
Summary
Auditors issued an unmodified (clean) opinion on Tehachapi's FY2024 financial statements and found no material weaknesses; a separate federal single audit of grant compliance is nearly complete and due March 31.
City finance staff and the contract auditors told the Tehachapi City Council that the city's comprehensive annual financial report for fiscal year 2024 received an unmodified, or "clean," opinion and that auditors found no material weaknesses in internal control.
The finding matters because a clean audit supports the city's transparency and standing with grantmakers and ratings agencies, and the city has submitted the report to the Government Finance Officers Association for a possible seventh consecutive excellence-in-financial-reporting award.
City finance staff summarized the audit timeline: auditors performed interim fieldwork in February, returned for final fieldwork in October 2024 and issued the comprehensive annual financial report in December 2024. Greg Frank Fancanno of VanLance and Fancanno LLP, the engagement auditor, told the council the firm is finishing the single audit of federal grant programs and expects to complete that work by the March 31 deadline. "We didn't find any significant findings in your internal control over compliance or noncompliance," Fancanno said during his presentation.
Staff also noted the city's general fund reserves are "very healthy." Auditors reminded the council to monitor the city's appropriations limit under state law; the audit presentation said the limit is about $17,000,000 and that Tehachapi is approaching roughly 90% of that threshold. That calculation can affect which proceeds of taxes are reportable and whether the city must take actions if it exceeds the limit.
Council members praised finance staff and auditors for their work. No formal council action was reported during the audit presentation other than discussion and acknowledgment.
Next steps: staff and auditors will complete the single audit of federal grants and return any final compliance findings to the council when the single audit is issued.
