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Tehachapi audit: city receives unmodified opinion; reserves described as healthy
Summary
Auditors issued an unmodified (clean) opinion on the city's fiscal year-end 02/2024 financial statements; no material internal-control weaknesses were found and staff submitted the report for a Government Finance Officers Association award.
Auditors gave the City of Tehachapi an unmodified (clean) opinion on the fiscal year-end 02/2024 financial statements and found no material weaknesses in internal control, city staff and the auditor reported at a city council meeting. The council heard that the city's general fund reserves are "very healthy" and that staff submitted the annual comprehensive financial report to the Government Finance Officers Association (GFOA) for an award.
Greg Fancanno of VanLance and Fancanno LLP said the audit team completed preliminary fieldwork in February and returned for final field work in October 2024. "We finished our audit except for the single audit, which is an audit of your federal grant programs. We're almost done with it right now," Fancanno said, adding the single audit is due March 31. He told the council auditors did not find significant findings in internal control over compliance or noncompliance.
Hamed (staff member) reviewed the report's structure and context for the council. He said the comprehensive annual financial report includes an introductory section, a management discussion and analysis, the audited financial statements and a statistical section with demographics and property tax information. The city has submitted the document for a possible seventh consecutive GFOA award.
Fancanno also flagged the city's appropriations limit under state law and advised council to monitor it. "You're getting closer than most of our city clients to the limit," he said, estimating the city's appropriations limit at about $17,000,000. He noted cities must compare proceeds of taxes to the limit and take certain actions if they exceed it.
Council members praised finance staff for preparing the records and for making the audit process efficient. Hamed and other staff received thanks for the work required to keep the city's books in order for auditors.
The auditors said they performed risk assessments and compliance testing on grant programs and that while some report sections (statistical information) are not audited, the core financial statements received reasonable assurance. No formal vote was required on the audit presentation during the meeting.
