Mount Clemens accepts 06/30/2020 audit; auditors flag controls and ice-arena bookkeeping
May 31, 2024 | Mount Clemens, Macomb County, Michigan
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
Mount Clemens commissioners voted to accept the citys fiscal-year 06/30/2020 financial report and management letter from audit firm Plante Moran after a presentation and commissioners questions.
Plante Morans presenter Lisa said the firm issued an "unmodified opinion," the highest level of assurance an auditor can provide, and highlighted that the general fund added to fund balance in 2020 despite pandemic pressures. Shawana Jackson, identified in the presentation as a senior manager at Plante Moran, walked commissioners through revenue and expenditure trends and fund-balance history, noting 2020 revenues dipped slightly from 2019 as state shared revenue and charges for services fell, while property-tax revenue rose.
The auditors presented long-term obligations and benefit-plan changes. Jackson said the pension funded percentage remained above 90% though the net pension liability rose in 2020 because of investment volatility; she reported the net OPEB liability declined substantially, a figure commissioners later cited as a $16 million drop (from about $52 million to $36 million) compared with prior years.
In the management letter, Plante Moran identified recurring year-end journal adjustments (including items related to the citys ice arena, which is managed by a third party), limited segregation of duties typical of small municipal staffs, and recommended periodic user-access reviews of financial systems as a best practice. "There are items in here that will be similar to previous years," Lisa said, and urged commissioners to consider ways to separate duties even within a small staff.
Commissioners pressed city staff about the ice-arena bookkeeping and corrective steps. Finance Director Cliff Mason described plans to bring arena bookkeeping into closer monthly reconciliation with city records, including temporary part-time assistance to balance the arenas QuickBooks with city books and more frequent oversight, aiming for monthly reconciliations by February.
After questions and discussion, Commissioner Renzor moved to accept the audit and management letter; the motion was supported and approved by roll call. Plante Moran thanked the commission for its cooperation.
Why it matters: The clean audit supports the citys fiscal standing and gives officials information they can use in the upcoming budget season, but the management letters control recommendations (segregation of duties, regular user-access reviews and corrected arena accounting) signal operational improvements the city says it will pursue.
Whats next: Commissioners discussed budget priorities including potential segregation of IT from finance and funding for fleet and infrastructure; staff noted arena bond due-diligence is scheduled with rating analysts in advance of planned bond actions.
Plante Morans presenter Lisa said the firm issued an "unmodified opinion," the highest level of assurance an auditor can provide, and highlighted that the general fund added to fund balance in 2020 despite pandemic pressures. Shawana Jackson, identified in the presentation as a senior manager at Plante Moran, walked commissioners through revenue and expenditure trends and fund-balance history, noting 2020 revenues dipped slightly from 2019 as state shared revenue and charges for services fell, while property-tax revenue rose.
The auditors presented long-term obligations and benefit-plan changes. Jackson said the pension funded percentage remained above 90% though the net pension liability rose in 2020 because of investment volatility; she reported the net OPEB liability declined substantially, a figure commissioners later cited as a $16 million drop (from about $52 million to $36 million) compared with prior years.
In the management letter, Plante Moran identified recurring year-end journal adjustments (including items related to the citys ice arena, which is managed by a third party), limited segregation of duties typical of small municipal staffs, and recommended periodic user-access reviews of financial systems as a best practice. "There are items in here that will be similar to previous years," Lisa said, and urged commissioners to consider ways to separate duties even within a small staff.
Commissioners pressed city staff about the ice-arena bookkeeping and corrective steps. Finance Director Cliff Mason described plans to bring arena bookkeeping into closer monthly reconciliation with city records, including temporary part-time assistance to balance the arenas QuickBooks with city books and more frequent oversight, aiming for monthly reconciliations by February.
After questions and discussion, Commissioner Renzor moved to accept the audit and management letter; the motion was supported and approved by roll call. Plante Moran thanked the commission for its cooperation.
Why it matters: The clean audit supports the citys fiscal standing and gives officials information they can use in the upcoming budget season, but the management letters control recommendations (segregation of duties, regular user-access reviews and corrected arena accounting) signal operational improvements the city says it will pursue.
Whats next: Commissioners discussed budget priorities including potential segregation of IT from finance and funding for fleet and infrastructure; staff noted arena bond due-diligence is scheduled with rating analysts in advance of planned bond actions.
Don't Miss a Word: See the Full Meeting!
Go beyond summaries. Unlock every video, transcript, and key insight with a Founder Membership.
✓
Get instant access to full meeting videos
✓
Search and clip any phrase from complete transcripts
✓
Receive AI-powered summaries & custom alerts
✓
Enjoy lifetime, unrestricted access to government data
30-day money-back guarantee
