The audit shows the city continues to carry an unfunded pension liability of about 14.4 million dollars, one of its largest long term financial obligations. Desgined by Freepik

 

GRIDLEY, CA (MPG) - Gridley remains in stable financial condition but continues to carry a multimillion-dollar pension obligation that officials said will require close attention in the years ahead, according to the city’s latest financial audit.

The fiscal year 2024 25 audit, presented to the City Council on March 2 by auditor Sheldon Chavan of Chavan and Associates LLP, issued an unmodified opinion, meaning the city’s financial statements were fairly presented and in compliance with government accounting standards.

“An unmodified opinion is as good as it gets,” Chavan told the council.

The audit shows the city continues to carry an unfunded pension liability of about 14.4 million dollars, one of its largest long term financial obligations. While the liability is slightly lower than the previous year, Finance Director Martin Pineda told the council that ongoing monitoring of pension costs, personnel expenses and broader economic conditions will be critical to maintaining long term fiscal sustainability.

The audit also notes the city’s general fund balance declined during the fiscal year, though officials said healthy reserves are maintained. Enterprise funds, including utilities and other services supported by user fees, remained financially strong during the reporting period.

Overall, the city reported a positive net position, meaning the value of its assets exceeds its liabilities.

Chavan reported no material weaknesses in internal controls, no findings of noncompliance and no significant audit adjustments, indicating the city’s financial records were in good order when reviewed.

During his presentation, Chavan said an independent audit evaluates whether a city’s statements are accurate and complete, a process that includes transaction testing and a review of internal controls. He also credited city finance staff for improving reporting practices in recent years and preparing records in a way that allows the audit to proceed smoothly.

“The city’s done a terrific job the last four years of getting things right and getting things caught up,” he said.

City officials said the annual audit provides an independent review of the city’s finances and helps ensure transparency for residents and policymakers. They said the findings also give the council a clearer picture of the city’s long term obligations as it plans future budgets and evaluates major projects.

The council voted to formally accept the fiscal year 2024 25 financial statements and independent audit report as part of its regular meeting agenda.