Mount Clemens audit: Plante Moran issues unqualified opinion; general fund posts modest surplus
May 20, 2024 | Mount Clemens, Macomb County, Michigan
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Plante Moran told the Mount Clemens City Commission that the firm issued an unqualified opinion on the city’s 2017 financial statements, a signal that the auditors found the statements presented fairly in accordance with applicable standards.
"We issued an unqualified opinion on the financial statements of the City of Mount Clemens," said Lisa Mineta, the audit partner in charge. Joe Werner, the audit manager, outlined key figures: general fund revenue for the year ended June 30, 2017, was about $10.5 million; general fund expenditures were roughly $9.5 million; and the year-end general fund balance was about $4.1 million, up from approximately $3.1 million the prior year.
The auditors explained some line-item shifts that might appear as revenue decreases. Werner and Mineta said a lower property-tax line reflected the state-mandated phase-out of personal property tax; the loss was largely offset by reimbursements through local community stabilization funds and increased state and federal sources. "It's really just a shift from one line to the other," Mineta said, adding it did not reflect declining taxable value or lower millage rates.
Werner described utility funds as showing positive trends as well: the water-supply and sewage-disposal unrestricted cash balances exceeded required debt-service obligations in the period reviewed. The auditors also cited higher expenditures in the year driven primarily by increases in health insurance and pension costs.
Commissioners praised department heads for managing the budget amid constrained resources; staff said the administration and employees’ proactive work put the city on a path to financial stability. The commission offered no further action after the presentation, accepting the audit report as presented.
The city will file required reports with the State of Michigan as appropriate; auditors noted they had provided the commission with a bound copy of the financial statements.
"We issued an unqualified opinion on the financial statements of the City of Mount Clemens," said Lisa Mineta, the audit partner in charge. Joe Werner, the audit manager, outlined key figures: general fund revenue for the year ended June 30, 2017, was about $10.5 million; general fund expenditures were roughly $9.5 million; and the year-end general fund balance was about $4.1 million, up from approximately $3.1 million the prior year.
The auditors explained some line-item shifts that might appear as revenue decreases. Werner and Mineta said a lower property-tax line reflected the state-mandated phase-out of personal property tax; the loss was largely offset by reimbursements through local community stabilization funds and increased state and federal sources. "It's really just a shift from one line to the other," Mineta said, adding it did not reflect declining taxable value or lower millage rates.
Werner described utility funds as showing positive trends as well: the water-supply and sewage-disposal unrestricted cash balances exceeded required debt-service obligations in the period reviewed. The auditors also cited higher expenditures in the year driven primarily by increases in health insurance and pension costs.
Commissioners praised department heads for managing the budget amid constrained resources; staff said the administration and employees’ proactive work put the city on a path to financial stability. The commission offered no further action after the presentation, accepting the audit report as presented.
The city will file required reports with the State of Michigan as appropriate; auditors noted they had provided the commission with a bound copy of the financial statements.
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