The First 5 Sacramento Commission unanimously adopted the fiscal year 2024-25 financial audit and the commissions annual report at its Dec. 1 meeting after a staff presentation and public hearing with no public speakers.

Russell Robertson, Assurance Director for auditing firm MGO (Masias, Jeanie & O'Connell LLP), told commissioners MGO issued an unqualified opinion, the highest level of assurance, meaning the financial statements are fairly presented in accordance with accounting standards. Robertson said auditors tested 24 compliance procedures, found all in compliance, and reported no disagreements with management.

Robertson highlighted one accounting change tied to a new GASB pronouncement on compensated absences that required restating prior-year figures to include sick leave payouts. The restatement was described as a minor adjustment of around $190,000 and was made for transparency in reporting liabilities.

The commission then heard the annual-report presentation from Carmen Garcia Gomez, evaluation manager. Garcia Gomez said FY24-25 expenditures totaled $19,200,000 (about a 10% reduction from the prior year) and the fiscal year ended with a fund balance of $17,100,000. She said contractors provided services to 14,171 parents, children and providers (a 34% reduction) largely because some Equity & Action contracts did not launch during the year; the commission expects service numbers to increase once those contracts begin.

Chair Serna opened and closed the public hearings for the audit and annual report; no members of the public signed up to speak. The commission then adopted the audit and the annual report on roll-call votes (all voting commissioners recorded "Aye").

Robertson said the auditors management discussion and analysis included expected reductions in net assets tied to projected strategic-plan expenditures and the change in Proposition 10 revenue, but overall activity remained within budget expectations.

The commission accepted the audit and will forward the documentation to the state and to First 5 California as required.