There weren't any surprises from the audit - FY25 ended with a managable deficit as anticipated. There were a two items that I wanted to call out.
- The Successor Agency, which is the entity that took on responsibility for funds after the prior Redevelopment Agency was folded due to state level action that dissolved RDAs in 2012, had been receiving funding from the County in order to wind down the activities of the RDA. The Successor Agency completely wound down in FY25, and as a result the revenue related to the administration of the Successor Agency decreased signficantly - nearly $350K. This will go away completely in the out years, and is the cause of projected revenue decreases in the next few years.
- The other item I wanted to call out is what did not happen. Our auditors did not identify any signficant deficiencies or material weaknesses in internal controls. Internal Controls are critical in the financial operation of the City. As a reminder, starting in FY20 through FY23, our auditors identified both significant deficiencies and material weaknesses in internal controls. They were serious findings, and for years the City was unable to remdiate them. As we have brought on different staff, the City has been able to address these areas and as was the case last year, in the current year there were also no findings.
