Auditor issues unmodified opinion on Birmingham's FY 2024–25 financial statements

Plante Moran presented the City of Birmingham's fiscal year 2024–25 audit to the commission on Dec. 15 and issued an unmodified opinion on the city's financial statements.

Spencer Tava, the Plante Moran principal who presented the audit, said the firm issued the highest form of assurance — an unmodified opinion — and reported no internal control deficiencies. He also presented an alternative compliance examination on ARPA funds (about $400,000 used this year) and reported no findings on that engagement.

Key figures highlighted in the presentation included a general fund balance increase of about $4.1 million for the year; roughly $30 million invested in infrastructure, machinery and equipment; governmental funds revenues of approximately $59.7 million against expenditures of about $54.4 million; and a total governmental fund balance of about $55.9 million, of which approximately $26 million is unassigned and available for general purposes.

Tava noted retirement liabilities: the city's pension plan was about 86% funded and the retiree health care (OPEB) position was 142% funded after changes that moved post‑65 retirees to a Medicare Advantage plan. The auditors recommended monitoring significant actuarial assumptions and annual contribution policies.

Commissioners asked follow‑up questions about the appropriate size of the unassigned fund balance (the commission has used a 20–40% guideline), the timing for budget decisions, whether infrastructure funding should be accelerated, and the practical meaning of a pension funded percentage. City staff and the auditor recommended addressing policy tradeoffs during the long‑range planning and budget process.