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Independent auditor issues unmodified opinion on Alpena’s FY2024 financial statements; council receives report
Summary
External auditor presented the FY2024 annual comprehensive financial report, issued an unmodified opinion and identified no material weaknesses; council voted to receive and file the audit.
The council received and filed the City of Alpena’s annual comprehensive financial report for the fiscal year ended June 30, 2024, after an in‑person presentation by Chelsea McConnell of Straley, Lamp & Kraenzlein.
McConnell told the council the audit resulted in an unmodified opinion — the highest level of assurance — and that the auditors did not identify any significant deficiencies or material weaknesses in the city’s internal controls. “I am pleased to say you were issued an unmodified opinion,” McConnell said during the presentation.
Key points from the audit presentation: - Net position (governmental activities) increased about $500,000 year over year; assets rose roughly $1.8 million overall while capital assets decreased about $940,000 due to depreciation exceeding additions. - Current and other assets rose primarily because the city held about $1 million in grant receipts that were unearned at year end. - The general fund’s unassigned fund balance decreased slightly but remained strong at about $4.4 million, representing roughly 136 days of expenditures — above the Government Finance Officers Association’s 60‑day recommendation. - Business‑type (enterprise) funds: sewer net position rose by about $787,000 (unrestricted portion ~$3.9M); water net position increased by about $1.3M (unrestricted portion ~$5.5M). The water fund increase reflected nonoperating items and a settlement adjustment noted by auditors.
McConnell identified audit areas requiring more audit evidence because of inherent risk, including revenue recognition, significant estimates (pension and OPEB liabilities under GASB 68 and 75), and receivables tied to a major customer with ongoing litigation in the business‑type activities. She also told the council that GASB 101 (compensated absences) will require attention in the coming fiscal year and could result in restatements in future years.
Council action: the council voted to receive and file the FY2024 audit report.
