Walnut Creek receives clean audit; council adopts annual comprehensive financial report

Walnut Creek officials adopted the city's Annual Comprehensive Financial Report for fiscal 2023—24 after Administrative Services Director Kirsten Lacasse told the council the auditor issued a clean opinion.

Lacasse said the city's net position ''an accounting measure that nets assets and liabilities'' rose to about $331,000,000, higher than the prior fiscal year. She told the council the city's general fund reserves meet or exceed the council's reserve policy; staff directed attendees to page 95 of the ACFAR for reserve detail and to the transmittal and management's discussion and analysis for a consolidated summary of the 196-page report.

Why it matters: a clean audit opinion indicates the city's financial statements present fairly and in conformance with applicable reporting standards; the net position increase and healthy reserves are signals staff presented as support for the city's fiscal position going into next year.

Details: Lacasse clarified that the $331 million is a net position figure, which includes capital assets such as roads, parks and buildings and is not a cash balance. She noted the city does not include pension-trust assets in general-fund reserves; pension trust assets were reported separately at about $28 million. Council members asked for and received the reserve-name and amount guidance and accepted staff's suggestion for where to find the detailed breakdown in the ACFAR.

Council action: Councilmember Silva moved to adopt the ACFAR and a second was given; roll call votes were unanimous. The motion carried.

What's next: the report remains available online and staff will use the transmittal and management's analysis to brief council and the public on year-over-year financial trends and material variances.