Auditor issues unmodified opinion; Birmingham posts $55.9M fund balance with $26M unassigned
Loading...
Summary
Plante Moran presented an unmodified audit for fiscal year ending 6/30/2025, reporting a roughly $4.1M increase in the general fund, approximately $30M invested in capital projects, ARPA spending of about $400,000, a total fund balance of $55.9M and an unassigned fund balance of $26M; pension funding reported at about 86% and OPEB at 142%.
Auditors from Plante Moran presented the city's fiscal year 2024–25 audit to the Birmingham City Commission on Dec. 15 and issued an unmodified opinion on the financial statements.
Presenter Spencer Towa (Plante Moran) said the audit team found no internal control deficiencies and reported several key figures: the city's general fund balance increased by approximately $4.1 million during the year; roughly $30 million was invested in city infrastructure, machinery and equipment; federal grant revenue was about $1 million, which included roughly $400,000 in ARPA funds used during the year. "We have issued an unmodified opinion," the presenter told commissioners.
The audit presentation also summarized fund balances and liabilities: total governmental fund balance stood at about $55,900,000 with an unassigned fund balance of about $26,000,000 available for general purposes. The auditors noted the city’s pension plan is approximately 86% funded; retiree health care (OPEB) showed a funded status of about 142% following plan changes that shifted post‑65 retirees to Medicare Advantage.
Commissioners and the public asked what portion of the fund balance is discretionary and whether the city should accelerate infrastructure spending. Auditor and staff clarified the distinction between total and unassigned fund balance and said policy decisions on spending levels and timing belong to the commission during budget deliberations. The audit contains standard required communications, identified GASB 101 accounting changes related to compensated absences, and flagged significant actuarial assumptions tied to pension and OPEB valuations.
No formal acceptance vote of the audit was required at the meeting; the presentation will inform upcoming budget and long‑range planning work.
