Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Audit topic
No spam. Unsubscribe anytime.
Auditors give Rochester Hills a clean opinion; council formally acknowledges receipt of 2024 financial report
Summary
Independent auditors issued an unmodified (clean) opinion on the City of Rochester Hills' 2024 financial statements. Council acknowledged receipt of the annual comprehensive financial report and discussed highlights including increased cash and investments and an OPEB asset position.
An independent signing principal from Raymond P LLC presented the City of Rochester Hills' annual comprehensive financial report for fiscal year 2024 and delivered an unmodified opinion on the city's financial statements. Council unanimously acknowledged receipt of the report during the May 12 meeting.
The auditor (Dan, signing principal) told the council the opinion was "unmodified" — the auditing term for a clean opinion — and that the city did not require a single audit because federal grant expenditures did not exceed the federal single‑audit threshold in 2024. The audit team reported increases in cash and investments (approximately $14 million higher than the prior year) and growth in net capital assets. The audit also noted a planned drawdown of general fund balance consistent with the city's fund balance policy and investments into capital projects.
On obligations, the auditor said government activities remained largely debt‑free for installment debt; some business‑type activity obligations reflect the city's participation in Oakland County projects (notably water and sewer). The presentation highlighted that the city's OPEB (post‑employment benefits) position remains an asset: plan assets exceed the actuarial present value of benefits, and the city had no required OPEB contribution for 2024.
The auditor reported one audit adjustment tied to staff turnover; management recorded the adjustment and no further corrective action was required. The audit team said there were no significant difficulties in performing the audit and that management provided requested documentation.
Council members commended the finance team for careful budgeting, stable revenues — property taxes were reported at about $42.5 million on an approximate taxable valuation of $4.4 billion — and strong internal controls. The council then unanimously approved a motion to acknowledge receipt of the annual comprehensive financial report (motion by Neubauer; second by Moreland).
Ending: Councilors described the results as "best in class" and praised the city's finance staff for stable budgeting and proactive capital investment.
