Hudsonville accepts unmodified FY2024–25 audit; auditors report no findings

The Hudsonville City Commission voted unanimously on Jan. 13 to accept the city's fiscal year 2024'25 audit, presented by Clark Schaefer Hackett.

Auditor Omar Ellescari told the commission the auditors issued an unmodified opinion and found no reportable findings in the year'end financial statements. "There was no finding," Ellescari said during the presentation. The auditors also noted the city adopted a new accounting standard that increased reported liabilities for compensated absences, a reporting change that does not reflect a new operational liability.

The audit presentation outlined several key financial changes for the year: capital assets increased by roughly $830,000, driven by road and sewer projects and equipment purchases; accounts payable rose about $638,000 mainly because of road-project invoices received before year-end but paid after year-end; and the general fund balance remained healthy at about $2.5 million, which auditors characterized as roughly 42 percent of one year's expenses (about five months of operating coverage).

Auditors also explained a prior-period correction: certain lead-testing costs had been capitalized in earlier financial statements by a prior auditor but were treated as operating expenses in the current audit after review and discussion with city staff. The auditors said they worked with city management during the engagement and that the records were well organized for the first year the auditors completed an engagement with the city.

Following the presentation, the commission approved a motion to accept the audit. The clerk recorded a unanimous roll-call vote in favor.

What happens next: the city will submit the financial statements to the state as required; auditors said that if the state has no concerns the city will not receive further notification. The commission expressed appreciation to staff and the audit team for a thorough process.