Adrian JohnsonTLDR:
- The City of Chico in California has received a ‘clean audit’ from accounting firm CliftonLarsonAllen.
- This is the first time in four years that the firm has given this assessment, having previously modified one report regarding the airport.
- The audit report shows that Chico’s financial statements are reliable, transparent, and can be trusted by the public and policy decision-makers.
The City of Chico in California has received a ‘clean audit’ from CliftonLarsonAllen, an outside accounting firm. This is the first time in four years that the firm has given this assessment. Previously, the firm had modified one report regarding the airport. The audit report shows that Chico’s financial statements are reliable, transparent, and can be trusted by the public and policy decision-makers. The audit has been presented to the Finance Committee and will now go to the full City Council for official acceptance.
Finance Committee Chair Sean Morgan praised the achievements of the city’s Administrative Services Director, Barbara Martin, and her team. He noted that the city’s financial situation has greatly improved, recalling that just a decade ago, it was so precarious that they needed a bridge loan to make payroll.
The audit report examined the city’s Annual Comprehensive Financial Report (ACFR) on all city funds and found that it has been free of findings for many years. The report also reviewed other financial reports and projects funded by general grants. The auditors concurred with Martin’s finding that the variance between actual amounts and final budget amounts were all positive. This means that actual revenue exceeded actual expenditures, which is due to a conservative budgetary approach.
The audit report also highlighted the city’s sound fiscal management, slow but steady economic growth, and an increase in local construction. Staffing numbers also showed an increase in personnel in the police department, maintenance, and parks in the past decade.
In summary, the City of Chico’s ‘clean audit’ is a positive endorsement of its financial practices and indicates sound fiscal management. The audit report shows that the city’s financial statements are reliable and transparent. This is a significant improvement from previous years and demonstrates the city’s commitment to strong fiscal policies and procedures.
