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City audit: Farmington Hills receives unmodified opinion; fund balance rises about $3M
Summary
External auditors issued an unmodified opinion for FY2024-25; general fund revenue rose about $2 million, expenditures increased mainly for police and parks & rec, and the city's fund balance rose to roughly $64.6 million; auditors noted no material weaknesses.
Jamie Rivett, audit partner with ONEO CPAs, presented the City of Farmington Hills' fiscal year 2024-25 external audit to council on Jan. 12. Rivett said the auditors issued an unmodified opinion, the highest level of assurance, meaning the financial statements required no material modification.
Key figures Rivett highlighted include an approximate $2 million increase in total revenue year-over-year driven primarily by a roughly 5% increase in property tax revenue; total expenditures and other financing uses increased about $4.4 million, attributable mainly to a roughly $1.2 million increase in police department costs, approximately $850,000 more in parks and recreation, and larger transfers out to other funds. Rivett said the city's combined general fund and public safety fund revenues total around $97.6 million and that the fund balance increased from about $61.6 million to approximately $64.6 million.
Rivett also reviewed capital activity: the city added about $24.3 million in capital outlay and is consciously investing in its roads and infrastructure. She said the retiree health care fund was about 117% funded and the pension plan roughly 71% funded. Auditors reported no material weaknesses, significant deficiencies, or instances of material noncompliance in internal controls. Rivett pointed council members to the governance letter included in the packet for more detail about significant estimates and upcoming accounting standards.
Councilmembers thanked the finance team for the work; the presentation concluded without action other than acceptance of the report for the public record.
