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Loma Linda auditors issue unmodified opinion as ACFR shows $1.9 million net-position gain
Summary
Auditors issued an unmodified (clean) opinion on Loma Linda's 2024 annual comprehensive financial report; the city's net position rose by $1.9 million and general fund balance grew by about $1.94 million, officials said. Staff asked council to receive and file the ACFR; no formal vote was required.
Brianna Schultz, the city's audit engagement partner, told the City Council the auditors are issuing an unmodified opinion on the City of Loma Linda's fiscal-year 2024 financial statements, the highest level of assurance an auditor can provide. "We are expressing an unmodified opinion, once again, for this year," Schultz said, adding the auditors found no material errors, irregularities or disagreements with management.
City financial staff presented the annual comprehensive financial report (ACFR) and highlighted key figures: citywide net position increased by $1,900,000 (from $163.1 million to $165.0 million), governmental activities contributed about $2.3 million to that change, and business-type activities decreased by about $371,000. The ACFR reported approximately $210 million in total assets and about $44.8 million in liabilities.
Anna Briones, senior accountant and financial analyst, summarized the general fund and budget results: the general fund ended fiscal 2024 with a $21.3 million fund balance, an increase of $1,938,696 over the prior year. Briones said revenues exceeded the final adjusted budget and controlled spending produced a favorable expenditure variance of roughly $1.36 million (about 5.2 percent). She also noted specific assigned reserves, including $2.0 million committed for emergency contingency and $1.2 million for capital-equipment replacement.
On enterprise funds, Briones said the water enterprise posted a positive net change largely due to capital transfers, while the Loma Linda Connected Communities internet service continued to lose money and shows ongoing accrued interest owed to the successor agency; staff said accrued interest on those loans is about $500,000 per year. The successor agency's fiduciary net position improved by about $4.6 million, driven by debt-service payments and recognized property-tax receipts through the recognized-obligation payment schedule.
City staff requested the council "receive and file" the ACFR; presenters said the report would be posted to the city's website as early as tomorrow. Because this was a receiving-file item, no formal council action was required beyond acknowledging receipt.
The auditors and city staff thanked departments for their work on the ACFR. Council members asked that future audit communications and accompanying surveys include clearer, layperson-friendly cover letters to reduce confusion about what responses mean for participants.
The ACFR and auditor's report will be available on the city website, and staff encouraged council members and the public to review the management discussion and analysis (pages 5—17) for the document's executive summary and context.
