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Haven Group gives Pontiac a clean audit opinion; council presses for more real-time finance reporting
Summary
Auditors from the Haven Group reported an unqualified audit opinion for the fiscal year ending June 30, 2024, highlighting improved general fund balances and investment income but recommending continued attention to timely financial operations and internal controls.
The Haven Group's audit partner presented the city's audited financial statements to the Pontiac City Council on Jan. 21, delivering an unqualified (clean) opinion for the fiscal year ended June 30, 2024. The auditors' report also included an unmodified single-audit opinion for federal funds expended above the single-audit threshold.
Nut graff: The auditors reported that the city's general fund and overall governmental net position increased year-over-year, driven in part by investment income and some one-time federal assistance. Auditors clarified that pension and other post-employment benefit (OPEB) figures are audited by other auditors and noted clean opinions on those components as reported to the city's auditors.
Key numbers and findings: The audit showed the general fund balance rising substantially over several years (cumulative growth reported for 2021'124) and governmental funds combined increasing from roughly $47 million to $84 million, driven partly by investment income (the audit cited $6 million of investment returns in the reported year). The auditors noted $92 million in cash and investments on hand and $46 million classified as unassigned fund balance at year-end. The single-audit required by federal rules was clean for the city's federal grants expended.
Council reaction and follow-up: Council members and the deputy mayor praised the clean opinion but pressed administration and auditors for more real-time financial reporting and attention to backlogs in accounting tasks that had to be completed in advance of the audit close. The audit partner and administration said much of the work to reach a clean opinion had required retroactive reconciliation and that the city must continue hiring and process improvements to keep accounting current.
Ending: The auditors said the statements and related documents will be posted to the city's website; council discussed ongoing staffing, internal controls and the need for timely monthly reconciliation so that future financial reporting mirrors current operations rather than retroactive cleanups.
