David H. Helisek of Plante and Moran, PLLC, the City of Chelsea auditing firm delivered lots of positive news about the city’s financial situation.
“I’m happy to say that the city has gotten an unmodified opinion, the highest level of assurance,” on its audit for the FY ending June 30, 2014,” he said.
Previously, a clean audit was deemed “unqualified,” but this year the term has changed, Helisek said.
“I want to compliment city staff and the senior leadership team for their continuing diligence and focus on the citizen’s behalf,” said Mayor Jason Lindauer.
“Plante Moran’s findings and their accompanying ‘unmodified opinion’ underscore the importance of fiscal stewardship, regardless of the economic state we find ourselves in,” he said, adding,
“Outstanding audit opinions are becoming the expected result each fall and all of us share in the pride our employees demonstrate each day.”
In the auditing firm reported that the city has a unrestricted general fund balance of about $967,000, or about 25 percent of its yearly expenses.
Last year, the city had a unrestricted general fund balance of about $530,000, but several factors, including a $150,000 insurance claim for a fire that took place at the Department of Public Work’s building, caused that number to increase.
Helisek said that city staff and the audit firm worked well together – his company had no disagreements with management, and that all the proper internal controls were in place.
The only note was a letter that the city received saying the Michigan Public Power Agency was holding about $180,000 in trust for the city, which was added into the financial picture.
The city is now getting quarterly statements from MPPA so it can accurately account for the money in this trust in this year’s audit.
The city has had funds in trust at the Michigan Public Power Agency (MPPA) dating from 2009 that have not been reported in the annual financial statements, “a note in the auditor’s letter states. “The finance department was not made aware of the funds held in the account until the current year, at which time it was properly recorded.”
This necessitated a change in the “beginning of the year net position in the electric fund to properly state the financial statements of the current year and prior year as required by generally accepted accounting principles.”
He updated the city on new governmental rules and regulations and said that among them, the state had changed the requirements for state-revenue sharing and that there would be less reporting but more money in the city’s future.
