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Compton council accepts FY2023–24 audit, auditors flag repeated internal-control weaknesses and ARPA reporting gaps
Summary
Auditors presented a clean opinion on Compton’s FY2023–24 statements but reported 21 findings — including material weaknesses and repeated reporting lapses affecting federal programs (Section 8 vouchers and ARPA). Council received the report and approved an auditor contract amendment.
Compton’s City Council received and filed the city’s FY2023–24 audited financial statements and single audit on April 28, after an Eden Payne LLP partner summarized the results.
Auditor Eden Casereno told the council the independent auditors issued an unmodified (clean) opinion on the city’s financial statements dated Feb. 5, 2026, and a single-audit report covering major federal programs. The audit identified 21 findings across the financial statements and federal awards: 12 material weaknesses, seven significant deficiencies and two instances of noncompliance. Several repeat findings relate to delayed reporting and controls over federal grants, the auditors said.
Casereno highlighted that the city’s net position improved in the audited year, reporting an increase in net position of about $67 million driven largely by one-time grant revenues, including ARPA funds. The auditors also reported total assets of about $68 million and discussed liabilities and areas of concern, including improper revenue recognition, contingent litigation exposures, authorization of journal entries and retroactive payroll reporting.
Councilmembers pressed auditors on priorities. The auditors recommended tackling material weaknesses first — particularly recurring reporting delays — and confirmed ARPA funds had been audited and are considered high risk; the single-audit included findings related to ARPA reporting and internal-control deficiencies.
After the presentation the council approved an amendment and purchase order for Eden Payne LLP to provide FY2024–25 auditing services totaling $232,885, covering the city financial-statement audit, the single audit for two major programs, and agreed-upon procedures related to certain enterprise activities. The contract also includes preparation of financial statements and attendance at audit and council meetings.
The city manager reported that the controller’s office has submitted corrective action plans for the findings, with implementation scheduled in 2026; auditors said the next audit (FY2024–25) will evaluate progress on implementing those remedies. The council’s formal receipt of the audit begins the public process for monitoring those corrective actions.
What’s next: council members and the audit committee will monitor implementation of the corrective action plan and expect Eden Payne to test changes as part of the next audit cycle.
