Rolling Hills Estates council receives clean audit; staff reports $3.6 million in unrestricted net position

City staff presented the City of Rolling Hills Estates’ audited financial statements for the fiscal year ended June 30, 2025, and the council voted to receive and file the report.

The city’s presenter, Robert Samario, said the report shows the city’s "Unrestricted net position of $3,600,000." He told the council the positive government-wide result was helped by capital contributions, including federal funding for underground and utility projects: "we received about 1.4, almost $1,500,000 from the federal government toward our underground and utility projects," he said.

Jamie Lambert, senior manager for the audit firm, described the firm’s work and findings: "we performed a financial statement audit for the city for the year ended 06/30/2025 in accordance with generally accepted auditing standards and government auditing standards," and "we issued an unmodified auditor's opinion on the financial statements for the city." Lambert also reported the single-audit of federal awards produced no findings and that auditors identified no significant deficiencies, material weaknesses, fraud or noncompliance.

Council members asked follow-up questions on specific line items. One councilor queried why direct refuse charges were lower than budgeted (reported at about $994,000); Samario said he had not yet determined the cause but noted refuse assessments are spread over approximately 700 parcels at roughly $1,585 per parcel and that shortfalls can come from nonpayment or parcels removed from the tax roll. On investment income, staff described the adopted interest assumption as conservative and said realized returns outperformed that conservative forecast.

After the presentations and a brief question period, an unnamed council member moved to "receive and file" the audited financial statements; the motion was seconded and approved by voice vote with no recorded opposition. The council did not request additional audit findings or formal corrective actions; staff agreed to follow up by email on several line-item questions raised during the discussion.

The council’s action completes receipt of the FY 2024–25 audited financial statements; no ordinance or budget adoption arose from the vote. The audit will be submitted to the state controller’s office as required.