Rohnert Park receives clean audit; finance staff cite implementation issues with new system

Rohnert Park's finance team reported on the city's annual comprehensive financial report and single audit for the fiscal year ending June 30, 2023, telling the council auditors issued an unqualified (clean) opinion but identified internal control findings.

Interim Finance Director Betsy H (who introduced Dan Hopley from the finance team) said the auditor issued a clean opinion on the financial statements and an unmodified opinion on compliance for the single audit, but also documented a material weakness caused by delays in bank reconciliations that dated to the city's conversion to a new financial system. The auditors also noted delays in financial reporting and several audit adjustments that staff said are now corrected.

Key figures cited during the presentation included general fund revenues of $52.9 million for FY 2022–23 and a net increase in fund balance of $5.9 million. Betsy H told the council that the material weakness and reporting delays stemmed largely from the system conversion and staff turnover, and that staff have been working to reconcile balances and complete outstanding adjustments.

Council members asked clarifying questions about delinquent hotel reporting, the status of restricted successor-agency funds, and how FY 2023 numbers are likely to compare with the most recent year. The finance team said they expect fund balances to remain stable as they close the next fiscal year's books and that rate stabilization reserves for enterprise funds remain in place.

The council received the audit presentation, asked questions and thanked the finance team for the work of closing the books and addressing audit findings. Staff said outstanding reconciliation work is on track to be cleared in the next audit cycle.