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Solvang council accepts FY 2023–24 audit; auditor issues unmodified opinion
Summary
Auditor Bedawi & Associates presented the City of Solvang’s fiscal year 2023–24 financial audit and the council voted 4-0 to accept the audit, which included an unmodified opinion and no material weaknesses in internal control.
The Solvang City Council voted Jan. 27 to accept the fiscal year 2023–24 financial audit for the period July 1, 2023 through June 30, 2024, after a presentation by the city's auditor.
Mitesh, the auditor from Bedawi & Associates, told the council the firm issued an unmodified opinion on the city's financial statements. “We’ve issued an unmodified opinion on these financial statements,” he said, explaining that an unmodified opinion indicates the auditor believes the statements are fairly presented in all material respects. The auditor also reported no material weaknesses in internal control.
Key figures presented by staff included year-end balances for enterprise funds: the city’s water fund had a fund balance the auditor summarized as $8,303,826 and the wastewater fund at $1,978,827. (Staff noted Measure U revenues are tracked separately for accounting purposes but are reported in the general fund for audit purposes.)
The auditor reviewed audit scope and risk areas, including the risk of management override of controls and revenue recognition; he described standard audit procedures used to address those risks, such as analytics, confirmations of large revenues and testing of manual journal entries. The audit identified no significant audit adjustments; all proposed adjustments were recorded.
The auditor also discussed accounting estimates that affect the financial statements, including pension and other post‑employment benefit (OPEB) liabilities and capital-asset useful-life estimates, and flagged upcoming GASB changes the city will need to address in future reports, including disclosures related to compensated absences and capital assets.
Council members praised finance staff for completing the report and for the city’s financial-reporting recognition. Staff also noted the city has earned awards for its financial reporting in prior years.
The council approved the auditor’s report by roll call: Council member Infante — yes; Mayor Pro Tem Claudia Arona — absent; Council member Smith — yes; Council member Elizabeth Arona — yes; Mayor David Brown — yes. The motion passed 4-0.
Clarifying details recorded during the presentation included the auditor’s reminder that an audit provides reasonable, not absolute, assurance and that some balances are estimates based on actuarial assumptions. City staff and the auditor said they will monitor upcoming GASB pronouncements and implement required disclosures in future reports.
