CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 25, 2026 BUSINESS & LEGISLATIVE
SUBJECT: FISCAL YEAR 2024-2025 FINANCIAL AUDIT REPORTS OF THE CITY
OF PALM SPRINGS
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
The certified public accounting firm of Clifton Larson Allen LLP (CLA) completed the annual financial reports of the City as of June 30, 2025.
RECOMMENDATION:
Receive and file the following Financial Audit Reports for the fiscal year June 30, 2025:
• Annual Comprehensive Financial Report (ACFR)
• Audit Communication Letter to the City Council
• Passenger Facility Charge (PFC) Report
• Housing Successor Audit Communication letter to the City Council • Public Financing Authority Financial Statements
• Independent Accountant’s Agreed Upon Procedures to Appropriations (GANN) • Measure D Independent Accountant’s Agreed Upon Procedures • Measure A Independent Accountant’s Agreed Upon Procedures (Conrad CPA Firm)
• Measure J Financial Statements and Independent Auditors’ Report STAFF ANALYSIS:
Based on the results of their audit, Clifton Larson Allen LLP provided the City with an unmodified opinion on the financial statements, which means that the City’s financial statements are fairly presented in all material respects and are in accordance with Generally Accepted Accounting Principles (GAAP).
The specific financial documents on which the auditor expresses an opinion are: 1) the financial statements, and 2) notes to the basic financial statements which include required supplementary information. These documents, along with the auditor’s opinion, audit
City Council Staff Report
February 25, 2026 -- Page 2
FY 2024-2025 Financial Audit Reports
communication letter, and report on internal controls form the core of the Annual Comprehensive Financial Report (ACFR).
Additional documents that make up the ACFR include: the letter of transmittal, management discussion and analysis (MD&A), and a supplemental section which includes a statistical section presenting detailed information to assist the reader in assessing the economic condition of the City.
Clifton Larson Allen LLP and City staff are currently in the process of completing the single audit and the report should be issued by March 31, 2026. The single audit report will be presented as a receive and file item on the consent agenda at a future City Council meeting.
The Measure J Annual Financial Report will be presented to the Measure J Oversight Commission at the February 19th Commission meeting.
The FY 2024-25 audited financial reports are available on the City’s webpage at the following link:
Annual Comprehensive Financial Report | City of Palm Springs Hard copies of the reports are available by request to the Department of Finance and Treasury.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Public Safety and Community Services.
FISCAL IMPACT:
None.
REVIEWED BY:
Department Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
None.