City auditor gives Madison Heights clean audit; GFOA budget award highlighted

City auditors and finance staff presented the fiscal year 2025 financial statements and a budget award update at the Nov. 20 meeting, telling council the statements are expected to receive an unmodified (clean) opinion.

Dan Merritt, a principal with Raymond, said an unmodified opinion indicates the firm believes the city’s financial statements are "fairly presented in all material respects" and suitable for submission to the State Department of Treasury. Merritt reviewed revenue and expense trends, noting rising property tax valuations, fluctuations in intergovernmental revenue after COVID, improved investment income in the last two years and continuing investment in public‑works street projects.

On pensions and other post‑employment benefits (OPEB), Merritt said the city has four defined‑benefit plans and has recently budgeted additional contributions, including $3,800,000 to the police and fire plan and $250,000 to the general employees plan, to improve funded status. He said the OPEB plan is more than 100% funded.

Mayor Haynes also announced the city received the Government Finance Officers Association’s Distinguished Budget Presentation Award for fiscal 2026, saying the award reflects transparent budget presentation and strong strategic planning.

Council received and filed the audit presentation; staff indicated the final audit report would be issued after council’s approval of the final draft and then submitted to the State of Michigan within required timelines.