KPMG issues clean audits for all enterprises; Commission honors departing CFO Todd Reestrom

KPMG presented unmodified (clean) audit opinions for the SFPUC’s three enterprises for fiscal year 2013–14, and the Commission formally recognized Chief Financial Officer Todd Reestrom as he departs for a city controller role.

Frances Lee (Deputy CFO) introduced Nancy Rose, audit partner at KPMG, who told the Commission the independent audit produced unmodified opinions for water, wastewater and Hetch Hetchy water and power. Rose said the firm found no material weaknesses or significant deficiencies in internal control and no reportable instances of noncompliance that would affect the financial statements. She noted one corrected misstatement (a reclassification from current to noncurrent accounts receivable), described lower audit materiality thresholds for the year and emphasized that KPMG had no disagreements with management.

Rose highlighted enterprise financial movements: a net position decrease of approximately $45.4 million for water (primarily capital spending and revenue changes), a $33 million net position increase for wastewater (driven by capital projects and bonds), and a $4.6 million decrease for Hetch Hetchy water and power (attributed in part to Rim Fire losses). She also noted GASB 65 accounting standard impacts and called out a handful of subjective accounting areas that auditors review closely (claims, wholesale revenue recognition, OPEB, workers compensation).

Earlier in the meeting the Commission read and conferred a resolution honoring Todd Reestrom for his service since 2008; Reestrom thanked staff and leadership, and commissioners praised his role in strengthening the department’s financial reporting and enabling long‑term capital work. Public commenters also praised Reestrom’s leadership.

There were no public audit controversies or audit adjustments left uncorrected at the time of the presentation.