Q1-2026 Audit Subcommittee Meeting: Tuesday, March 17th

The City of Santa Monica Audit Subcommittee held a special meeting on March 17, 2026, focusing primarily on the presentation and discussion of the annual comprehensive financial report and internal audit status. The auditors reported an unmodified opinion on the city's 2025 fiscal year financial statements, indicating accuracy and reliability, and made a recommendation to improve capital asset tracking by using dedicated capital asset accounts. Committee members discussed key financial metrics, reserve fund levels, pension liabilities, and the impact of recent events such as fires and litigation on the city's finances. The subcommittee also reviewed the status of internal audits, with a focus on capital asset management and customer service functions, and deliberated on the upcoming expiration of the Baker Tilly audit contract. They considered whether to issue a new RFP or extend the contract, with a consensus to align future audit work with the city's strategic priorities and realignment plan. Motions to receive and file reports were passed unanimously by roll call vote.