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Platt Moran audit: South Lyon posts unmodified opinion, fund balance rises to $7.8 million
Summary
External auditors gave South Lyon an unmodified opinion for fiscal year ending June 30, 2025, noting a $1.1 million increase in general fund balance, continued infrastructure spending and improved pension and OPEB funding levels.
South Lyon — Platt Moran presented the city’s financial statement audit for the year ended June 30, 2025, to the City Council on Oct. 13 and issued an unmodified (clean) opinion, the auditors’ highest level of assurance.
The auditors reported an increase in the general fund balance of $1,100,000 to $7,800,000 from the prior year. Of that total, auditors said about $7,500,000 is unassigned and available for general purposes. Tim Saint Andrew and Phil Femenino of Platt Moran presented the audit and the financial slides.
The presentation highlighted $5,000,000 in capital spending during the year, mainly for road and utility system improvements, and noted the city is still drawing down road improvement bond proceeds received in 2023 (about $2,500,000 remains). The city also held approximately $3,000,000 in capital projects fund balance available for future projects and paid down $2,000,000 of debt principal in 2025.
Platt Moran said the water and sewer fund showed an operating loss of about $408,000 that includes depreciation (a noncash expense); excluding depreciation, the fund would have shown a small operating gain. The auditors reviewed pension and retiree health plan funding: pension was reported at about 65.8% funded (auditor measurement basis), and the city’s OPEB trust was about 63% funded, a marked improvement from near 0% roughly five to six years ago.
Auditors confirmed they found no audit findings to report and said they encountered no disagreements or difficulties during the audit. The unmodified opinion means the financial statements and disclosures are materially accurate and can be relied upon by users.
Platt Moran emphasized these legacy cost improvements reflect deliberate contributions to pension and OPEB trusts. Council members commended staff on the result. The auditors and staff said they will continue to monitor liabilities, capital needs and funding sources and present any material changes to the council.
