CliftonLarsonAllen issued an unmodified audit opinion on the City of Glendale's financial statements for the fiscal year ended June 30, 2025, and reported no material weaknesses or significant deficiencies in internal control, the auditor told the Glendale Audit Committee Dec. 2.

The audit firm's engagement principal, Daphne Munoz, said the opinion is the most favorable an auditee can receive. "We have issued an unmodified opinion, which is the highest opinion that an auditee can get," Munoz said. She also noted an emphasis of matter directing readers to a retroactive restatement required by GASB 101 related to compensated absences.

The ACFR (Annual Comprehensive Financial Report) for FY2024-25 presents the city's government-wide financial position and operating results. City accounting staff said the consolidated statements cover about 71 funds and show approximately $3,500,000,000 in assets, $1,700,000,000 in liabilities and an ending net position of about $1,900,000,000. Alvin De Leon, an accounting manager, summarized the year's operating results as roughly $995,000,000 in revenues and $891,000,000 in expenses, leaving about $104,000,000 in net positive results for the year.

The auditors told the committee they found no corrected or uncorrected misstatements and no disagreements with management. "We did not have any comments this year," Munoz said when summarizing the firm's review of internal control over financial reporting. The firm also noted that because the city spent more than $750,000 in federal expenditures, a federal single audit is required and is scheduled to begin in January with an expected issuance no later than March 31.

Committee members asked about the accounting change tied to GASB 101, and Munoz and staff said the standard changed the way certain leave accruals, including sick leave and other paid-time-off accruals, are recognized. The implementation required a retroactive restatement that reduced the beginning net position; auditors cited a restatement amount of $13,400,000 while staff also referenced an approximate $14,000,000 decrease as a result of the change.

The auditors also described significant estimates included in the financial statements, such as pension and OPEB liabilities (based on CalPERS valuations and actuarial studies), claims payable (actuarial estimates), and landfill post-closure liabilities (estimates from DWR). The city provided a representation letter dated Nov. 19, 2025, that accompanied the audit file.

No formal actions or votes were taken during the special meeting. The audit committee thanked auditors and staff for the presentation, and staff noted there were no additional comments. The audit work and ACFR will be presented to the City Council as part of the normal adoption process.