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Independent audit: Placentia receives unmodified opinions but notes a material weakness in year‑end close
Summary
Auditors presented the city's annual comprehensive financial report and single audit for the year ending 06/30/2024, reporting unmodified opinions on financial statements and federal programs, and identifying one material weakness related to the financial close and reporting process; council received and filed the reports.
CliftonLarsonAllen principal Bob Callanan presented the annual comprehensive financial report (ACFR) and the single audit for the fiscal year ending June 30, 2024. The auditors issued unmodified (clean) opinions on the government‑wide financial statements and on major federal programs tested.
Callanan said the audit identified one material weakness tied to the city's financial close and reporting process, noting several corrected misstatements during the audit and recommending enhanced checks and balances on cutoff procedures for accounts payable and receivable post‑year end. No significant deficiencies or material weaknesses were noted on the federal award compliance side.
Key figures highlighted by the auditor included a government‑wide net position of $88.5 million (an increase of about $1.6 million from the prior year); capital assets increased by $22.3 million; unearned revenue decreased by $1.4 million largely due to use of ARPA funds; and the general fund ending balance was $18.3 million, a decline of about 8.3% from the prior year.
Council received and filed the ACFR and single audit. Staff and the auditor noted upcoming GASB guidance (including Statement 101) and said they would continue implementing necessary disclosures and process improvements.
