Adelanto officials outline audit timeline, pull 2020–21 single-audit from consent and present continuation budget

Adelanto City Council members heard a fiscal-status briefing June 26 from City Treasurer Dr. Gil Kaynan and municipal adviser Julio Morales as staff detailed work to complete pandemic-era audits, explained that capital projects are funded from restricted special-revenue accounts, and asked the council to permit the city to operate under the current budget assumptions for 60–90 days while staff finalizes a detailed FY 2024–25 proposal.

The presentation, introduced by Kaynan, said the city must "catch up on two years of financial audits" and comply with multiple grant- and state-level reporting requirements before it can access certain restricted funds. "We expect completion by December 2024, which is monumental," Kaynan told the council, summarizing the team's timeline for completing outstanding audit work.

Why it matters: several council members warned that incomplete audits block access to grant dollars that fund capital projects. Mayor Pro Tem Ramos said the city may be unable to access "millions and millions of dollars" while audits remain incomplete and urged staff to prioritize grant applications and training so Adelanto can compete for regional programs such as SCAG's REAP2 funding.

The council approved the meeting agenda and the consent calendar by voice vote after staff announced it would remove Consent Item 2 — the single-audit report for fiscal year 2020–21 — from the consent calendar because the city disagrees with an auditor finding and intends to work with auditors to challenge and resolve the issue. A city staff member told the dais: "We will be removing... the single audit report for year 2020–21 due to a finding that the city disagrees with." The staff member said the city expects to resolve the matter with auditors and return the item at a future regular meeting.

Julio Morales, a registered municipal adviser with Cosmont Companies, outlined how most capital projects rely on competitive grant or special-revenue funds rather than the general fund and emphasized the fiduciary duty municipal advisers hold to recommend what is in the city's best interest. Morales said the finance team is focusing on three streams: the general fund, the public utility funds (water and sewer), and special revenue funds for capital projects.

Councilman Mason pressed staff on the audit schedule, asking why one phase showed two months while another showed four. Morales and Kaynan said progress varies by year and by the work needed for each audit; they said the '22 audit is underway and the team is "halfway through '22," with an ambition to finish sooner where possible.

Staff also presented Resolution 24‑60, a proposed investment policy for fiscal years 2024–25 that would delegate certain investment authority to the city treasurer and accompany a request to continue government and public utility operations under existing budget assumptions for roughly 60–90 days. Staff said a detailed proposed budget and a capital-improvement plan will be presented in August, and that other state-required reports should be ready by August as well.

What remains unresolved: the single-audit report for 2020–21 was explicitly removed from the consent calendar; staff said the city disagrees with one auditor finding and will pursue discussions before returning the audit for council action. The transcript does not record a final council vote on Resolution 24‑60 during the special meeting.

The council opened and closed public comment for the special agenda item at about 6:56 p.m. and then moved on to additional agenda business.