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City auditor: Ridgecrest posts improved reserves and unmodified opinions; one internal‑control finding
Summary
Auditors issued unmodified opinions for Ridgecrest's FY 2025 financial statements, reporting increased assets, higher net position and over one year of unassigned general‑fund reserves; auditors noted one internal‑control finding tied to a prior‑period adjustment.
The city's external auditors reported to the Ridgecrest City Council on June 17 that the fiscal‑year 2025 financial statements earned unmodified audit opinions and show improved reserves and capital investment, though auditors issued one internal‑control finding related to a prior‑period adjustment.
Coley Delaney, the city’s engagement partner with The Poon Group, told the council the firm issued unmodified opinions on governmental activities, business‑type activities and each major fund, meaning the financial statements are presented fairly in all material respects. "We issued unmodified opinions to all opinion units," Delaney said.
Delaney summarized key figures: total city assets rose by about $12 million year‑over‑year (roughly $10 million of that was capital asset additions); net position increased by about $15.5 million; restricted net position totaled about $1 million at the government‑wide level with roughly $8 million restricted for capital projects. On the general‑fund balance sheet Delaney said cash and investments were approximately $23.7 million, taxes receivable about $3.0 million and $4.5 million due from other funds.
The auditors noted revenues and transfers showed modest changes: taxes were $22.8 million in 2025 (down roughly $1.0 million from 2024) and public‑safety spending increased to about $9.4 million. A financial indicator the auditors discussed — the ratio of tax revenues to net cost of services — remained healthy, with 2025 results indicating tax revenues covered roughly 173% of net services cost. Delaney said the general fund’s unassigned fund balance was about $24.9 million, representing more than one year of annual general‑fund expenditures.
The firm reported one finding related to internal control over financial reporting: auditors identified a prior‑period adjustment that was necessary to achieve materially fair financial statements. Delaney emphasized there were no disagreements with management over accounting treatments and no uncorrected misstatements were passed on.
What happens next: The audit presentation closes the formal audit cycle; staff and auditors will follow up on the internal‑control finding and the city will continue to publish the annual comprehensive financial report and related footnotes for public review.
