San Diego posts clean FY2024 audit; council accepts comprehensive financial report 9–0

City finance staff and outside auditor Crowe LLP presented the City of San Diego’s FY2024 Annual Comprehensive Financial Report (ACFR) Feb. 24; Crowe issued an unmodified (clean) opinion and reported no significant deficiencies or material weaknesses in internal controls.

Jeff Peel, assistant director with the Department of Finance, reviewed the ACFR’s purpose and highlighted key fund balances: the Consolidated General Fund ended with a total fund balance of $530,400,000; emergency reserves were $107,600,000 and stability reserves $99,500,000. Peel said the Water Fund had a net position of approximately $2.3 billion and the Sewer Fund about $2.8 billion.

Kathy Lai, partner at Crowe LLP and lead engagement partner for the city audit, told the council: “We have issued an unmodified opinion,” and confirmed the audit disclosed no material corrected or uncorrected misstatements and no material weaknesses.

Public commenters recognized the clean audit but used the hearing to press for different policy priorities. Several speakers raised concerns about outcomes tied to city spending, including homelessness and public safety resources. One commenter raised questions about the city’s reported "other pay" totals and urged further scrutiny of personnel compensation figures.

Council members thanked finance staff and the external auditor for the work. The Audit Committee chair said his questions at the committee follow‑up left him satisfied that the ACFR accurately represents the city’s financial statements. The council voted 9–0 to accept the ACFR.

Acceptance of the ACFR is an annual, retrospective accounting requirement and does not itself change city policy or budgets; it is used by rating agencies and other stakeholders for financing and fiscal oversight.