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Milpitas council accepts FY 2023–24 financial audit; general fund balance rises $11.7 million
Summary
The City Council unanimously accepted the city’s Annual Comprehensive Financial Report for the fiscal year ending June 30, 2024. Auditors issued an unmodified (clean) opinion. City staff reported a $11.7 million increase in the General Fund balance and an overall $21.9 million increase in net position.
The Milpitas City Council voted unanimously to accept the city’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024, after a staff presentation and questions from council members.
Luz Caprati, finance director, told the council the city “received an unmodified, this what's called the clean opinion as expressed in the independent auditors report.” The auditors found no material weaknesses or material deficiencies. The audit firm noted a small “other matter” related to the timing of some journal entries; staff said corrective procedures are in place.
Key financial figures presented by staff included a $21.9 million increase in the city’s total net position and an $11.7 million increase in the General Fund balance compared with the prior year. General Fund revenues rose by $7.8 million; staff said $4.6 million of that increase reflected recognition of American Rescue Plan Act (ARPA) funds recognized in FY2023–24. General Fund expenditures also increased but staff said vacancy savings contributed to net positive results.
Council members asked about audit standards, internal review processes and the city’s contract-posting practices. The auditor (Mays and Associates) joined the meeting remotely and confirmed the clean opinion. Council member Fan asked whether the audit addresses internal controls and contract procedures; staff said the auditors perform statistical sampling and review minutes and agenda materials as part of their work.
Staff outlined how the council-directed “waterfall” for surplus allocations was applied to the FY2023–24 surplus. Of an estimated $5.3 million net surplus, $1.2 million was set aside for an ERAF (Educational Revenue Augmentation Fund) litigation contingency, $1.1 million was moved to the General Fund contingency reserve, $1.1 million to the budget stabilization reserve, and $1.9 million to a PERS rate stabilization fund.
The council accepted the audited financial report by unanimous vote. No member registered a nay or abstention.
