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Mount Clemens accepts FY2023 audit after auditor reports clean opinion and improved fund balances
Summary
The Mount Clemens City Commission voted unanimously to accept the fiscal year 2023 independent audit, which the auditor described as an unmodified (clean) opinion and said showed a year-end surplus largely boosted by ARPA funding and improvements in water and sewer funds.
The Mount Clemens City Commission unanimously voted to accept the independent financial audit for the fiscal year ending June 30, 2023, after an auditor told the commission the statements received an unmodified (clean) opinion.
Jordan Smith, the lead auditor who presented the report, said the audit offered "a clean unmodified opinion," and described it as the best possible opinion an audit can deliver for the city's financial statements. The presentation noted an operating surplus in the general fund for the year, driven in part by federal ARPA grant revenue, and improvements in the water and sewer funds.
The auditor highlighted several specific fiscal items: the water fund improved its net position by $478,500; the city's net other post-employment benefits (OPEB) liability decreased from $51.7 million to $30.3 million since the liability was first reported in 2017; and retirement plan assets increased, reflecting broader market gains. The auditor also pointed to two findings in the report: one missing pension census record dating from earlier years and a set of unfavorable budget variances caused in part by late-arriving invoices.
Commissioners asked follow-up questions about code-enforcement fee revenue and how fee increases might close an identified gap. The auditor explained that revenues and expenses for that department are not directly proportional because some inspection work is paid on a percentage-basis to an outside vendor, and permit revenue also factors into the numbers.
The commission moved to accept the auditor's management letter, the independent auditor's report on internal controls and compliance, and the city's annual financial report. The motion passed by roll call without recorded opposition.
Next steps: the city will incorporate the auditor's recommendations into fiscal planning and consider how fee policy and budgeting practices respond to identified variances; no additional formal action was taken at the meeting.
