The City of Palos Verdes Estates has received a clean, unmodified audit opinion for the Fiscal Year ended June 30, 2025, following an independent audit conducted by Vasquez & Company LLP.

The audit confirms that the City maintained accurate accounting records, completed its year-end closing on schedule, and required no audit adjustments, a notable milestone reflecting strengthened financial controls and improved coordination across City departments. 

“The FY 2025 audit demonstrates meaningful progress in the City’s financial reporting and internal processes,” said City Manager Kerry Kallman. “Staff worked diligently to return the audit to a standard reporting timeline and to improve the quality, transparency, and reliability of our financial reporting.”

The audit evaluates the accuracy and completeness of the City’s financial reporting and does not assess future funding needs or policy decisions.

Key Audit Highlights

• The City’s Finance Department, LSL Consulting, and other departments involved in the audit process were cooperative, prepared, and responsive throughout the audit.
• The FY 2025 audit was completed within the standard reporting cycle, representing a significant improvement from the prior fiscal year and reflecting strengthened year-end close processes and internal controls.
• The City maintained complete and accurate accounting records and achieved a year-end close and financial reporting process that required no audit adjustments.
• The City prepared its Annual Comprehensive Financial Report (ACFR) in accordance with Government Finance Officers Association (GFOA) Certificate of Excellence in Financial Reporting criteria and intends to submit the report for award consideration.
• Due to the close timing of the FY 2024 and FY 2025 audits, certain internal control deficiencies identified in the prior year carried over into FY 2025; implementation of corrective actions is underway, with improvements implemented or in progress to further strengthen financial reporting controls.

 The City Council received and filed the Annual Comprehensive Financial Report and auditor communications at its January 14, 2026, meeting. Residents may review the City Council agenda materials here.

The audit results reflect the City’s ongoing commitment to transparency, accountability, and best practices in municipal financial management.

For more information, residents may review the Fiscal Year 2024–25 Annual Comprehensive Financial Report available here.