Water district accepts clean 2025 audit; net position rises $2.7 million

The Coast Highway County Water District Board voted Jan. 13 to accept the district’s 2025 financial audit, which auditors issued with an unmodified (clean) opinion.

Jonathan Abadesco, partner in charge for the audit, told the board the audit followed professional standards including AICPA guidance and governmental accounting principles. He said the district’s net position increased by $2,700,000 for the year, driven by $2,300,000 in higher operating revenue and $470,000 in nonoperating revenue, which the auditor tied to transmission and storage fees related to the Stone Pine affordable housing project.

The audit report and a management letter included no material weaknesses, significant deficiencies or findings of fraud, Abadesco said. He described the audit process—control testing, transaction sampling and consideration of fraud risk—and credited district staff for providing documentation and cooperation during fieldwork.

Board members asked follow-up questions about asset dispositions and issuance costs. Staff explained a disposal loss tied to an earlier tank rehab (remaining undepreciated value was discussed) and described cost components linked to the district’s recent certificates of participation (COPs) issuance, including issuance fees and short-term interest.

A director moved to accept the audit; the motion was seconded and approved by roll call.

The board’s acceptance does not create new policy; it records the audit outcome and directs staff to incorporate the report into routine financial reporting and any follow-up management recommendations.