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Monroe City receives clean audit for FY2024–25; GASB change increases compensated‑time liability
Summary
Plante Moran delivered unmodified audit opinions on Monroe's FY2024–25 financial statements and federal‑grant compliance; a retrospective implementation of GASB No. 101 increased reported compensated‑absence liability by about $650,000 but did not affect cash budgets, auditors said.
Plante Moran auditors told the Monroe City Council on Dec. 1 that the city's FY2024–25 financial statements received an unmodified (clean) audit opinion and that the city also received unmodified compliance opinions for its federal awards, including American Rescue Plan Act funds.
Bill Brickey, audit partner for Plante Moran, said the firm found no internal control weaknesses or audit findings that required disclosure. "You did receive what we refer to as an unmodified audit opinion," Brickey said, summarizing the firm's conclusion.
The auditors described four core deliverables: the audited financial statements contained in the annual comprehensive financial report (with the audit opinion); the single-audit of federal awards; a graphic presentation summarizing key financial information; and a letter to the mayor and council describing the engagement.
Brickey highlighted one technical change in the statements: implementation of GASB No. 101, an accounting pronouncement that changed how the city measures compensated‑absence liabilities such as accrued sick and vacation time. The standard was applied retrospectively, which led to a restatement of beginning balances and an increase in the compensated‑time liability of about $650,000. "That standard was applied retrospectively," Brickey said, noting the adjustment affects reporting but not how the city budgets or pays employees.
Alyssa Fleury, an associate with Plante Moran, reviewed trend slides for the general fund. She reported general fund revenue of about $22.4 million for the year, a small year‑over‑year increase of roughly $90,000. Property tax remained the largest revenue source (about $14.7 million). On the expenditure side, public safety was the largest functional expense and represented roughly 47% of general fund expenditures on a budgetary basis; when certain OPEB debt service is reallocated by function, public safety represents about 51%.
Fleury also noted total fund balance of roughly $8.16 million at year end, of which about $4.18 million was unassigned (approximately 18.5% of the 2026 budgeted expenditures), above the city's 15% policy minimum. The pension plan was reported at about 82% funded and the OPEB plan at about 149.5% funded.
City officials thanked the audit team and said the report will inform budget work in the coming months; the city manager indicated a potential budget amendment for the general fund early in the next year.
