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Independent auditors give Bell Gardens an unmodified opinion but flag a material internal‑control weakness
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Summary
Auditors reported an unmodified opinion on Bell Gardens' ACFR for fiscal year 2024–25 but noted one material weakness tied to audit adjustments and internal controls; the presentation included fiscal highlights and Q&A about long‑term debt and actuarial valuations.
The city’s independent auditors, Gruber and Lopez, issued an unmodified opinion on Bell Gardens’ annual comprehensive financial report (ACFR) for fiscal year 2024–25 but identified one material weakness related to internal controls and required audit adjustments, the firm reported to the council Tuesday.
Matt Linton, audit and accounting director for Gruber and Lopez, told the council the audit was performed under generally accepted auditing standards and government auditing standards and resulted in an unmodified opinion dated April 13, 2026 — the highest opinion an auditor can issue. He said auditors identified several audit adjustments this year (cash, investments, capital assets, depreciation, accounts payable, accrued liabilities, long‑term debt and unearned revenue) that were recorded as journal entries and reported in the management letter as a material weakness.
Linton summarized financial highlights: general revenues totaled about $15.4 million for the year; total city revenues were $76.6 million (including $33.5 million in program revenues and $43.1 million in general revenues and transfers); net position was roughly $79.7 million (an increase of about $76,000 from the prior year); the city’s investment in capital assets (net of depreciation) rose to about $126.2 million; and long‑term debt increased by approximately $10.6 million to $119.9 million, primarily from post‑employment liabilities and pension liability. He also said there were no material instances of noncompliance with federal programs that were material to the financial statements.
Council members asked whether changes in reported long‑term debt were cyclical; Linton replied that liabilities such as CalPERS and OPEB are based on actuarial reports and periodic valuation updates, which can produce year‑to‑year fluctuations.
Council moved to receive the ACFR on file; the motion was carried by roll call.
The auditors said they will submit the report for the Government Finance Officers Association certificate of achievement and worked with staff on corrective measures to address the management letter comments.
Next steps: staff will track corrective actions addressing the material weakness and report back as required.
