Auditor gives Lapeer County unmodified opinion; general fund ends year with $12.5 million

Lapeer County received its annual comprehensive financial report for the year ending Dec. 31, 2024, after auditors told the Board of Commissioners they issued an unmodified opinion on the county's financial statements.

The auditor, Aaron Stevens, partner at the county's auditing firm, told commissioners that "we did express unmodified opinions on your financial statements. What that means is that the financial statements are fairly presented," and that the opinion is the highest level of assurance under generally accepted accounting principles.

Stevens summarized key measures for commissioners: the county ended the year with a $12.5 million general-fund balance, including $7.8 million of unassigned fund balance, roughly 34% of annual expenditures; a current-ratio liquidity metric that covered current obligations 2.7 times over; and unrestricted net position equal to about 13% of annual expenses on a government-wide basis.

Why it matters: an unmodified opinion indicates auditors found no material misstatements in the county's financial statements, and the fund balance and liquidity metrics provide the county operating reserves that affect cash flow, budget flexibility and the view of bond raters.

On federal awards, Stevens said the county spent about $6.9 million in federal funds in 2024 and that auditors tested the American Rescue Plan Act (ARPA) program as the major program, giving 59% coverage of federal expenditures. He said there were no material weaknesses or significant deficiencies reported for federal-award compliance.

Commissioners asked how the report would affect bond ratings. Stevens said having strong financial health "helps you. It doesn't hurt it." The board then voted to receive the annual comprehensive financial report for the year ending Dec. 31, 2024.

Additional details from the audit presentation: general-fund revenues totaled about $25.5 million in 2024, an increase of roughly 11% from 2023, with property taxes accounting for the largest share of revenues; transfers out rose markedly in recent years, largely driven by a new special-revenue arrangement for the sheriff's department; and the Governmental Accounting Standards Board (GASB) reporting changes were noted as upcoming requirements.

The auditors provided a separate single-audit report on federal awards and noted upcoming GASB standards that will affect reporting in future years. The board accepted the report by voice vote and thanked the audit team for the presentation.