The City of Lodi released its FY 2023-24 Annual Comprehensive Financial Report (ACFR), detailing the fiscal health of the city for the period ending June 30, 2024. According to the City of Lodi report, the auditing firm Lance, Soll & Lunghard, LLP (LSL) found no incidences of misuse pertaining to taxpayer dollars. The clean bill of financial health was echoed by an independent financial investigation, which also turned up no fraud in the City's finances.
While the financial reports were largely positive, the July 16 City Council meeting brought to light some concerns regarding the City's bookkeeping. Outside legal counsel updated the Council, after assessing the Utility Deposit and Holding Account and procurement card usage, Kevin Harper, C.P.A., found certain accounting practices in need of further review. It was made known that, while no fraud was detected, ensuring accurate customer amounts and strengthening internal controls over procurement cards were necessary. As rattled off by the City of Lodi's statement, Mayor Cameron Bregman celebrated the reports, stating, "We are proud that both the annual financial report and the independent investigation confirm the strong financial health and fiscal clarity of the City of Lodi, and validate that no taxpayer dollars were misused or attempted to be misused."
Focusing on specific findings from the financial audit, the auditors reported no material non-compliance with laws, regulations, or grant requirements and gave an unmodified opinion on the City's General Fund and Streets Fund. Nevertheless, a reporting gap with CalPERS was identified relating to unused holiday cash-outs for some retired employees. Mayor Bregman assured the public of the resolution in progress, with confirmation from his statement saying, "City staff are actively working with CalPERS to resubmit the data, with full resolution expected in the next reporting cycle," as stated by the City of Lodi.
The implementation of GASB 96 was another significant move during the fiscal year, overseeing subscription-based IT arrangements. This adjustment has added both a $4.9 million asset and a $4.8 million liability to the city's ledger, reflecting the subscription's true economic value. Maintaining a streak of excellence, the Government Finance Officers Association (GFOA) has recognized Lodi with its Certificate of Achievement for Excellence in Financial Reporting for the past 30 years, with the city aiming to hit the 31st year, submitted for consideration. Mayor Bregman noted, without hesitation, that "the strong financial health and fiscal clarity of the City of Lodi" are worthy of such accolades, an attribute reflected in the audit report's findings, as per the City of Lodi.
