Auditor gives Flat Rock a ‘clean’ opinion, council told finances are healthy
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Summary
City auditor Daniel Beard reported an unmodified (clean) audit opinion on Flat Rock’s 2024 financial statements, citing a prior-year pension grant that temporarily inflated revenues and noting strong working capital and healthy water-and-sewer fund results.
The Flat Rock City Council heard its annual audit presentation from Daniel Beard, the city’s contracted auditor, who reported an unmodified — or “clean” — opinion on the city’s financial statements.
"We gave you an unmodified opinion, which is the highest level of assurance," Beard said during his presentation, adding that users of the statements "can rely on those statements to make informed decisions." He explained that a $4.8 million pension grant recognized in 2024 produced an outlier in revenue that year and that, adjusted for that item, the city still showed year‑over‑year revenue growth.
Beard highlighted key metrics the council should watch: taxable value (about $373 million, up roughly $3 million year‑over‑year), a 9.6% increase in current‑year revenues (before adjusting for the pension grant), and a $1.7 million improvement in the general fund balance. He said public safety accounted for roughly 47% of general fund expenditures and that the water and sewer fund produced healthy operating income, roughly $1.5 million, with $1.6 million in capital additions.
On long‑term obligations Beard reported pension funding at about 57.43% (below the 60% target the state encourages) and noted progress on OPEB funding — rising from near zero a few years ago to about 11% funded now.
Beard told the council there were no material weaknesses or significant deficiencies in internal control and that the city received a governance letter with no adverse findings.
Mayor Beller and other council members praised city staff. "Brian, wonderful job," the mayor said after the presentation.
The council did not take any formal action on the audit itself; the presentation concluded with an invitation for questions and no substantive follow-up requests recorded on the transcript.
