External auditors give Loma Linda a clean opinion; council hears FY2025 financial highlights

External auditors presented Loma Linda's FY2025 annual comprehensive financial report and issued an unmodified (clean) opinion on the city's financial statements.

Veronica Hernandez, engagement manager for the audit team, told the council the auditors issued an unmodified opinion and reported no disagreements with management or material errors. Monica Wysocki (senior accountant) summarized audit procedures and confirmed the audit found no significant internal-control deficiencies.

City Finance Manager Anna Briones reviewed the ACFR's highlights: citywide net position increased by approximately $7.2 million to about $172 million for the year ending June 30, 2025; governmental activities accounted for roughly $139.2 million in net position and business-type activities about $33.1 million. The general fund ended the year with a fund balance of about $21.7 million and the ACFR showed an excess of revenues over expenditures of roughly $505,000.

Briones and auditors noted that the improved net position was largely driven by development impact fees and capital contributions from developers; she also said general revenues increased slightly while some operating costs rose, including overtime tied to regional strike-team fire responses.

Council members asked several budget questions: members queried how a previously projected deficit reconciled to an eventual surplus, whether overtime budgeting practices were conservative, and how vacancies affected service delivery. Staff explained the midyear adjustments and supplemental appropriations that contributed to the midyear $1.2 million shortfall figure and said reimbursements (for strike-team work) offset some costs.

After questions, the council received and filed the auditors' report and the ACFR.

(Reporting note: figures and claims come from the auditors' presentation and staff remarks in the meeting transcript.)