Independent auditors give Kalamazoo County an unmodified opinion; report notes one corrected material adjustment

Peter Waldman, CPA and CGFM from audit firm Raymond James (presenting the comprehensive annual financial report and single audit), told the Board the auditors issued an unmodified opinion on the county’s 2024 financial statements — the highest opinion an auditor can provide.

Waldman said there were no findings related to federal awards compliance for major programs, but auditors reported one financial‑statement finding tied to material audit adjustments. He cited adjustments including beginning bond balances for lake‑level districts, retainage payable and capital outlay related to the justice facility, and certain drainage‑district items; the entry points are documented in the audit report (Waldman referenced page 244 for details).

Waldman walked commissioners through key financial highlights. He said the county’s total governmental fund balance was $35,923,097; after a $3,000,000 budget‑stabilization set‑aside, the unassigned general‑fund balance was just over $30,100,000. He reported the change in fund balance for the year was a decrease of about $20,200,000, primarily reflecting transfers to the capital projects fund. Unassigned fund balance represented 27.2% of annual expenditures — about 3.3 months of spending.

Waldman also summarized other highlights called out in management’s discussion, including an employee benefit enhancement, a new strategic plan, completion of the justice facility during the fiscal year, and acquisition of a transitional housing facility.

During follow‑up, commissioners asked detailed questions about transfers and fund‑balance composition. One commissioner noted transfers out of roughly $45.2 million and asked where the dollars were directed; staff and auditors pointed the board to footnotes and a transfers schedule in the audit (Waldman referenced page 92 for transfers detail). Commissioners also discussed the county’s OPEB (other post‑employment benefits) liability: Waldman said the county's net OPEB liability had dropped, noting a 2021 liability of about $23.8 million and a 2024 liability of $11,174,000; the county also carries a net pension asset around $14 million on the statements.

Waldman recommended that the board focus on the management discussion and certain financial highlights (he noted pages 23–34 and the letter to commissioners) when reviewing the large report. Commissioners asked for additional follow‑up and said they would use the audit information during the 2026 budget process.