San José officials on Dec. 9 presented the city’s Comprehensive Annual Financial Report and external audit results, and the City Council unanimously accepted the documents.

Finance Director María Auberg led the presentation alongside Deputy Finance Director Víctor Lobe and external auditors from MGO. Auditor Ben Lau told the council the audit team “issued an opinion for all the audit reports we reviewed and audited,” characterizing the opinion as unmodified, commonly described as a clean opinion.

The presentation said the city’s net position increased by $85,000,000 before a one‑time accounting restatement related to recognition of compensated absences; after that adjustment the city’s net position rose by about $10,000,000 for the fiscal year. Staff attributed the restatement to implementing a recent accounting standard that requires governments to record certain leave balances as a liability.

Auberg told the council this marks four consecutive years in which the city received an audit without new findings. She highlighted collaboration across departments, modernization of financial systems and continued staff development as contributors to that performance. The presentation also noted that the city maintains strong credit ratings from major rating agencies.

Councilmembers moved to accept the Comprehensive Annual Financial Report and the external auditor’s report and approved both motions unanimously. The council did not receive substantive public comment on the items during the meetings on the reports.

The council’s acceptance does not change the city’s audit findings (none new) or previously authorized debt; it records the council’s acknowledgment of the audit and staff’s recommendation to accept the reports. The city’s finance office indicated follow‑up work already planned for grant compliance and the single audit for federal awards, which staff said is expected to conclude by the end of March 2026.