Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Audit Gasb topic
No spam. Unsubscribe anytime.
Independent auditors give Ypsilanti clean opinion; pension and GASB changes flagged
Summary
External auditors Clark Schaefer Hackett issued an unmodified opinion on the city’s FY2024 financial statements, noting growing general-fund balances but identifying long-term pension liabilities and upcoming GASB standards — including possible recognition of deferred road-maintenance liabilities — as future fiscal considerations.
City auditors Clark Schafer Hackett presented Ypsilanti’s fiscal year 2024 audit on Wednesday and issued an unmodified opinion — commonly called a "clean" opinion — on the city’s financial statements.
Auditor Palmer Elaskari told council that general-fund revenues exceeded expenditures for the year and that property-tax growth and investment earnings improved the city’s financial position. The auditors reported the general fund could cover roughly 71% of the next year’s expenditures from fund balance and noted the major-street fund ran a slight deficit because capital street work outpaced revenues in 2024.
Cody Mitchell, engagement manager, highlighted that the government-wide net position rose and that capital investments (streets, vehicles) continued. He cautioned that pension and other long-term liabilities appear on governmental financial statements and that changes in pension funding and investment returns can substantially affect expense volatility. The auditors noted the state made a one-time contribution to public-safety retirement funds that reduced pension expense in FY2024.
The audit team also previewed forthcoming Governmental Accounting Standards Board (GASB) changes. Of particular note, an exposure draft under consideration would require governments to disclose and later recognize deferred maintenance liabilities for infrastructure (roads, bridges and other assets), potentially showing a larger long-term liability on balance sheets. Auditors advised councils to begin early planning and to coordinate with engineering departments to build inventories and cost estimates.
Council members asked detailed questions about how budgeted but unspent positions and restricted grant funding affect year-end results and how deferred liabilities would be reported; auditors explained that budgetary reporting differs from the government-wide accrual statements where pension and other long-term liabilities appear.
Elaskari and Mitchell offered to meet with council members or new appointees to walk through the statements and provide a refresher on governmental accounting.
Ending: Auditors filed the FY2024 financial statements on time and will continue to work with city staff to track upcoming GASB standards and to help the city prepare for disclosure and reporting changes.
