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Shafter accepts FY2023–24 audit; auditors give unmodified opinion, note one material‑weakness item addressed
Summary
External auditors told the council they issued an unmodified (clean) opinion on the city’s financial statements, identified one material weakness that has been addressed in the statements, and reported no fraud, waste or abuse; council accepted the ACFR.
Finance Director Roger Sanchez introduced LSL audit manager Ky Gonzalez, who presented the city’s Annual Comprehensive Financial Report and the independent auditor’s findings. Gonzalez said auditors rendered an unmodified opinion on the 2023–24 financial statements and reported no instances of fraud, waste or abuse identified in their audit.
The auditors reported one material weakness related to financial reporting; Gonzalez said the condition’s impacts had been addressed and incorporated into the financial statements, and staff and auditors expect the cause to be resolved in the coming year.
Gonzalez summarized financial highlights: net position increased by $15.6 million to $232.3 million; unrestricted net position represented about 42.3% of total net position; the General Fund unrestricted balance grew $10.6 million from the prior year; capital assets rose $8.5 million, and long‑term debt increased by roughly $7 million (about 20% from the prior year). Net pension liability and OPEB figures also changed modestly.
After the presentation, Council Member Espinosa moved to accept the report; Council Member Alvarado seconded. The council approved the ACFR and accepted the auditor’s communication by roll call vote.
What comes next: Staff will finalize the auditor’s SAS 114 communication letter and work to complete corrective steps addressing the reported control weakness.
