Clearlake auditors report clean opinion on FY 2020–21 financials; fund balance rose after PG&E settlement

Clearlake — The audit firm VanLant & Finkenhill told the council the city's financial statements for the fiscal year ended June 30, 2021, received an unmodified (clean) opinion.

Brett VanLant, the audit partner, explained the audit process and said the firm found the financial statements fairly presented in accordance with generally accepted accounting principles. “The city's financial statements for 06/30/2021 received an unmodified opinion,” VanLant said.

He highlighted several figures: net pension liability rose by roughly $400,000 for the 2021 fiscal year but is expected to decline in 2022 because CalPERS posted investment gains; the city's fund balance increased by about $14 million, driven largely by a settlement with PG&E that boosted unrestricted general‑fund balances. VanLant also said the city has made progress addressing prior internal-control findings and that only one finding remained, relating to the timeliness of producing financial statements for 2021.

VanLant provided a brief update on the 2021–22 audit (field work substantially complete) and thanked city staff for cooperation. Council members had no substantive questions at the close of the presentation.

Next steps: auditors will conclude remaining procedures on the 2021–22 audit and report when work is complete.