Fiscal Year 2024-2025 annual audit reports from external independent auditor, CliftonLarsenAllen LLP (20-minute presentation) Ryan Carter, Controller, Finance Department

CliftonLarsonAllen LLP (CLA) presented the Annual Comprehensive Financial Report (ACFR) and related financial audits for the City of Riverside for the fiscal year ended June 30, 2025. The auditors issued an unmodified (clean) opinion, confirming the financial statements adhere to generally accepted accounting principles (GAAP).

Financial Status & Internal Controls:

• Material Weakness: The audit identified a material weakness in internal controls over financial reporting related to the recording of deposits and construction in progress. The City recorded a prior period adjustment to correct these balances, which included reclassifying completed construction projects to depreciable assets and properly recognizing deposits as revenue. The Finance Department has implemented new accounting procedures and is hiring additional staff to address these legacy accounting issues.
• Single Audit: The City submitted its Single Audit report on federal awards prior to the March 31, 2026 deadline, despite delays in the release of the 2025 OMB Compliance Supplement.

Key Fiscal Highlights:

• The City’s net position increased by $38.5 million to $2.44 billion.
• The City received the GFOA Certificate of Achievement for Excellence in Financial Reporting for the 38th consecutive year and the Award for Outstanding Achievement in Popular Annual Financial Reporting for the 8th time.
• The City’s long-term bonded debt totals $1.81 billion.
• The Electric and Water utilities maintain strong credit ratings, with AA- (S&P/Fitch) for Electric and AA+ (S&P/Fitch) for Water.

Decisions Required:

• The Finance Committee is asked to receive, provide input, and forward the audit reports to the City Council.