Independent audit finds repeat year-end control deficiency; council approves follow-up consulting and extra audit work

Culver City’s independent auditors presented the FY2024–25 financial audit at the April 13 council meeting, delivering an unmodified opinion on the financial statements while identifying a significant deficiency in the city's year‑end close and reporting procedures.

Ryan Domino of LSL LLP told council the numbers in the financial statements are materially correct, but the year-end closing process produced more than 50 adjustments after the initial closed trial balance — a repeat deficiency that increases audit effort and creates a risk that material errors could pass undetected. The auditors also noted that last year the city filed its single-audit report late; this year’s filings were on time but the auditors said underlying process issues had not been fully remediated.

"The current process of closing the books at the end of the year is not effective at ensuring completeness and accuracy," Domino said. He recommended an auditor-advisory engagement to help close the books more efficiently, an expanded audit scope for certain transit-related funds (citing an LA Metro audit), and follow-up testing during the next audit year to confirm corrective actions.

Council voted unanimously to receive and file the comprehensive financial reports, approve up to $50,000 for LSL’s advisory services to help close the books, and approve up to $50,000 for expanded audit services in FY2026 for the transportation fund, among related actions designed to strengthen internal controls.

Councilmembers thanked staff for working through the audit process and asked for a written corrective-action timetable; staff said management has submitted a corrective-action plan and the auditor will verify progress during the 2026 audit cycle.