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City finance officials present FY2025 comprehensive financial report; auditor issues clean opinion
Summary
The City presented its FY2025 Annual Comprehensive Financial Report (ACFR); external auditor Crowe LLP issued an unmodified (clean) opinion and staff noted implementation of GASB 101 and 102; the council received and filed the report.
City finance staff and external auditors presented the Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR) to the San Diego City Council on Feb. 10. Crowe LLP reported an unmodified (clean) audit opinion and did not identify material weaknesses or significant deficiencies in internal controls.
Finance staff summarized the report's role as a GAAP‑based financial statement used by investors and rating agencies. The ACFR includes an introductory section with a letter of transmittal, management’s discussion and analysis, the audited financial statements and a statistical section. The report incorporates two new GASB standards implemented for FY2025: GASB 101 (compensated absences) and GASB 102 (certain risk disclosures); the compensated‑absences restatement totaled $18.1 million for governmental funds and $4.5 million for business‑type funds as reflected in note disclosures.
Key fund figures presented by staff included a consolidated general fund ending balance of approximately $414,600,000 (including emergency and stability reserves) and reported net positions for the water and sewer funds (reported at roughly $2.3 billion and $2.8 billion, respectively). External auditors said they completed the audit and found management cooperative with no reportable misstatements.
Council moved to receive and file the ACFR; the motion carried with the recorded vote. Councilmembers thanked finance staff and the audit committee for their work in preparing the report and noted the award recognition for prior fiscal year reporting.
The ACFR will be used as a reference for the upcoming budget development cycle and for bond‑market communications.
