David Alvey, an audit partner with Mays & Associates, told the Town of Moraga’s Audit & Finance Committee on Dec. 2 that his firm issued an unmodified — or "clean" — audit opinion for the fiscal year ended June 30, 2025.

"That is an unmodified or clean audit opinion," Alvey said during the committee’s presentation of the annual comprehensive financial report. "You passed your audit." He told the committee the firm found no material misstatements, no significant deficiencies and no disagreements with management.

The audit partner outlined the two-phase audit approach — an interim phase in June focused on internal controls and a final phase in September testing balances — and said a single-audit compliance review will follow if federal spending thresholds apply.

Why it matters: A clean opinion signals that the financial statements "present fairly" the town’s financial position under generally accepted auditing standards. Committee members said the result helps maintain Moraga’s fiscal credibility and its AAA bond rating.

Key numbers included in the report: Alvey reported an entity-wide net position of about $95.3 million as of June 30, 2025, with roughly 85% of that amount invested in capital assets and about $10.3 million in the general fund balance — an $812,000 increase from the prior year. The town’s Section 115 pension trust stood at about $2.5 million after initial contributions and investment growth.

Committee reaction and next steps: Administrative Services Director Katie Bruner framed the ACFR as informational and highlighted staff plans to issue an RFP for a financial advisor and to update the investment policy to pursue higher returns than those currently available in money-market accounts and LAIF. Committee members questioned specific line items (including franchise fees and traffic-signal maintenance) and noted areas for further staff follow-up.

The committee moved to recommend that the Town Council accept the FY 2024-25 ACFR; the motion was seconded and approved unanimously by the committee present.