Plante Moran gives Mount Clemens a clean 2016 audit; city fund balance edges up

Plante Moran auditors told the Mount Clemens City Commission on Tuesday that the city’s 2016 financial statements received an unmodified — or clean — opinion, signaling the statements are fairly presented and compliant with accounting requirements.

"Our audit procedures were again to issue an unmodified or a clean opinion," said Lisa Manetta, municipal audit partner with Plante Moran. "The financial statements ... are fairly stated in accordance with all accounting principles that governmental entities are required to follow." She and account manager Joe Werner presented graphs showing revenue and expense trends and fund balances.

The presentation said general-fund revenues increased in 2016, with the largest driver being property-tax receipts in the first year of the Headlee override millage. At the same time, general-fund expenditures decreased modestly — from roughly $9.5 million to $9.2 million — a change auditors attributed in part to lower health insurance costs and reduced Community Development Block Grant (CDBG) spending.

Manetta and Werner also reviewed utility funds. Unrestricted cash for the water-supply system rose relative to debt-service obligations, and the sewage-disposal fund was reported to be in better shape when compared with its required debt payments.

On CDBG funding, the auditors said the county is returning to an annual program after a multi-year cycle, so the city’s CDBG allocation "starting July 1, 2017 will be very similar to what we received in 2016," Werner said, adding that the change should lead to steadier year-to-year funding.

The auditors closed by thanking city finance staff for their cooperation; commissioners and staff asked a few operational questions but took no formal fiscal action during the presentation. The commission received the report and moved on to other business.