Simi Valley audit finds clean opinion, general fund strengthened

An independent audit of Simi Valley's financial statements for the year ended June 30, 2025, produced an unmodified (clean) opinion and no material weaknesses, the city's auditors told the City Council.

"We are again issuing a clean opinion," Linda Nariso, lead audit partner at Vasquez & Company LLP, said during the firm's presentation. The firm also reported no federal compliance findings in the single-audit and confirmed the city qualified as a low-risk auditee.

The audit highlighted several financial metrics the council flagged as important. Net position for government-wide activities increased by roughly $40 million compared with the prior year, the auditors said. In the general fund, Simi Valley closed the year with about $104 million in fund balance and an unassigned balance of $42.5 million; the auditor noted revenues exceeded budgeted projections and that increased property tax receipts contributed to the improvement.

Auditors reviewed internal controls and reported no significant deficiencies or material weaknesses. They also confirmed management's corrective actions on a single prior-year federal audit finding.

During the question-and-answer period, council members asked about data and emerging risks such as artificial intelligence; auditors said IT controls and evidence-support testing remain central to financial reporting audits and that they evaluate data integrity with in-house IT specialists.

The presentation closed with standard auditor communications about accounting estimates and upcoming GASB pronouncements that will affect how financial narratives and certain disclosures appear in future reports.