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GROSSE POINTE FARMS — The financial records in Grosse Pointe Farms are in good order.
So said the city’s auditors from Plante Moran, who delivered the results of the most recent audit — covering the 2023 to 2024 fiscal year — to the Farms City Council at a Dec. 9 council meeting.
“The city did receive an unmodified opinion. … We often refer to that as a clean audit,” said Bill Brickey, of Plante Moran, the audit partner on the Farms’ account.
Brickey thanked city staffers — including City Manager Shane Reeside and Finance Director Tim Rowland — for their assistance.
“They really do a great job helping us complete the audit in an efficient manner,” Brickey said.
The city is doing very well in terms of pension funding. The audit shows that the Public Safety Retirement System, or PSRS, was 112.81% funded as of June 30, while the General Employees’ Retirement System, or GERS, was 94.71% as of June 30.
Retiree health care funding is also on excellent footing. The Farms has been prefunding these systems for the last several years. As of June 30, health care for the PSRS was 89% funded while it was 77% funded for the GERS. Anyone hired by the Farms after July 1, 2007, is no longer eligible for this program; it has been replaced by a health savings account, to which the city and the employee contribute annually.
Rowland said the majority of the city’s revenue — about 70% — comes from property taxes.
This is the 31st year the Farms has received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. The honor — for the 2022 to 2023 fiscal year audit — is given to audit reports that go above and beyond state standards, said Brickey. They tend to be more user friendly for people without a background in finance and contain useful information about the city and its projects and expenditures.
Rowland said the Farms would be applying for this honor again, for its 2023 to 2024 audit.
In addition, Rowland said the Farms had received an Outstanding Achievement award from the GFOA for its Popular Annual Financial Report for the 2022 to 2023 fiscal year. This marked the 12th year the Farms has received this honor. The brochure-sized document provides a concise, user-friendly overview of the city’s finances.
Rowland said the city’s fund balance rose by nearly $267,000 in the last fiscal year. The total general fund balance stood at slightly over $6.922 million as of June 30. The Farms’ unassigned fund balance stood at just under $5.378 million as of June 30. Rowland said the city’s fund balance was 26.8% of the budget, which is “within our targeted amount” of 25% to 28%.
“I think your leadership team continues to do a good job of managing the finances,” Brickey said.
Mayor Louis Theros was among the officials pleased with the audit results.
“Thanks to the administration for the good, hard work and keeping us fiscally sound,” Theros said.
