Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Mount Clemens posts unmodified audit opinion for fiscal 2025; commission accepts report
Summary
Auditors reported a clean, unmodified opinion for the year ending June 30, 2025; general-fund revenues were about $18.96 million, expenditures about $17.10 million, and the city added $1,857,642 to fund balance. The commission voted to accept the audit.
The Mount Clemens City Commission voted to accept the city's financial report and governance letter for the fiscal year ended June 30, 2025, after auditors presented an unmodified opinion and highlighted several financial improvements. Jordan Smith of Manor Kosterasan told the commission the independent audit produced a clean, unmodified opinion in accordance with generally accepted accounting principles. "That is the best possible opinion you can get," the auditor said.
Key figures presented: general fund revenues totaled about $18,960,426 and expenditures about $17,102,784, producing an increase in fund balance of $1,857,642 for fiscal year 2025. The water fund improved its net position by approximately $7,096,986 and the sewer fund by approximately $3,285,881; the auditor attributed those gains primarily to capital grants and contributions. The city's net future liability for other post-employment benefits (OPEB) decreased from about $51,700,000 to about $28,300,000 since 2017, and the pension system showed an increase in plan assets of roughly $4,027,466. The auditor also noted higher permit revenues tied to the Macomb County Jail project and several capital outlays for downtown revitalization and park improvements.
During questions, commissioners pressed about the presentation of governmental activities and the effect of the OPEB liability on unrestricted net positions; the auditor said OPEB dynamics largely explained negative unrestricted amounts on government-wide statements and flagged upcoming accounting pronouncements (GASB 103 and GASB 104) with limited operational impact expected.
The commission moved to accept the audit and governance letter and carried the motion on a roll call. The commission also approved routine purchases and payments later in the meeting.
Next steps: the audit will be filed as the official financial record for FY2025; staff and commissioners said they will use the audit findings to inform budgeting and capital-planning discussions in the coming year.
