Hawaiian Gardens audit shows unmodified opinion; net position falls after RDA write-off
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Summary
An independent audit for fiscal year 2025 issued an unmodified opinion Dec. 19, 2025, while the city's net position declined about $4.9 million largely from a write-off of advances to a former redevelopment agency; auditors highlighted grant-driven revenue increases and a healthy general fund reserve.
The Hawaiian Gardens City Council received the city's FY2025 annual audit on Jan. 14, 2026, in which Gruber & Lopez Inc. issued an unmodified opinion on Dec. 19, 2025, indicating the firm's highest level of assurance that the city's financial statements present fairly in all material respects.
Matt Linton, audit director with Gruber & Lopez Inc., told the council the city's net position was about $47.6 million at year-end, with roughly $31.0 million invested in capital assets and about $5.9 million restricted for specific uses. Linton said the net position decreased by approximately $4.9 million, primarily due to write-offs of advances to the former redevelopment agency (RDA).
The audit identified a roughly $3.6 million increase in operating grants, driven mainly by two capital grants: a $2,220,000 ARPA (American Rescue Plan Act) award and a $1,200,000 grant for traffic signal synchronization. Linton said expenses increased in part because of use of those grant funds. He added the city submitted its FY2025 report for consideration of the Government Finance Officers Association certificate earned previously.
Auditors reported no significant deficiencies or material weaknesses in internal controls related to the annual financial statements, the government auditing standards report, or the single audit of federal awards. The audit team also tested compliance with grant requirements and reconciled the general ledger to detailed subledgers.
On the general fund, Linton said the unassigned fund balance was about $5.1 million, roughly 27% of estimated next-year general fund expenditures. He told the council the city website is required to post the full audit and staff planned to publish the complete report online.
The council did not take action beyond receiving the presentation. The audit will be posted to the city website and staff indicated the single-audit documents and related materials will be available online.
