Results from an independent audit for the fiscal year that ended June 30, 2020 showed that Sterling Heights continues to manage its finances very well.
City Controller Nick Makie presented the audit to the Mayor and City Council Tuesday, Dec. 15. Makie said independent auditors Plante & Moran once again issued the City an “unmodified” opinion as part of its audit process - the highest rating possible. In addition, for the 32nd consecutive year, the Government Finance Officers Association (GFOA) recognized the City for its excellence in financial reporting and budgeting.
Plante Moran commended the City for following its long-term financial plan and continuing to live within its budget. Plante Moran further commented on the strength of the budgeting process which has allowed the City to continue to contribute to fund reserves at levels above the median. The accounting firm highlighted that the City has continued to proactively address earned legacy costs. The condition of the books and records were in great shape with no journal entries identified during the audit.
“The City has continued to follow its long-term financial plan and invest in the community through major road reconstruction efforts, neighborhood road improvements, recreational assets and place making amenities; invest in infrastructure by replacing capital equipment and upgrading and repairing City facilities; and invest in employees by continuing to offer competitive wages and benefits and fully fund long-term retirement liabilities. This has all been accomplished while maintaining a City tax rate that remains one of the lowest of any city in Macomb County and an excellent AA credit rating from Standard & Poor. This ongoing commitment to prudent expenditures and a strong fund balance will ensure the ability to weather the ongoing financial impact of the COVD-19 pandemic,” said City Finance & Budget Director Jennifer Varney.
“I commend our entire Finance team for their diligent work throughout the year resulting in the favorable audit results,” said City Manager Mark Vanderpool. “They continue to do excellent work and are among the best in the business.”