Palos Verdes Estates receives clean FY2025 audit; city moves to bolster finance staffing

LSL auditors presented Palos Verdes Estates’ audited financial statements for fiscal year 2025 on Jan. 14 and issued a clean (unmodified) opinion. Auditor representatives credited the finance team and outside consultants for completing the audit on time and for remediation of prior deficiencies, noting the year‑end close and audit procedures were completed earlier than in prior years.

Noah Daniels of LSL summarized the audit’s key points: the only recently applicable accounting standard was GASB 101 (compensated absences), and auditors found the city’s financial statements fairly stated in all material respects. Roger (LSL) highlighted that there were no proposed audit adjustments, the year‑end close occurred promptly, and most prior significant deficiencies have been remediated or are in progress.

Council members and finance advisory committee (FAC) representatives praised the progress and discussed next steps to sustain internal controls. FAC members Leslie Dehoff and John Nendick — who identified their auditing and finance backgrounds during public comment — urged that policies and procedures be institutionalized rather than being temporary fixes while staff capacity is rebuilt. The city manager said staff will begin recruiting for a finance director and may issue an RFP for recruiting assistance; auditors and staff will continue embedding procedures into day‑to‑day operations.

Council received and filed the audit report; no formal vote was required for receipt. Staff will return with next steps on policy and procedure documentation and recruitment timelines.