Chelsea Receives Its Year-of-COVID Financial Report

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By Doug Marrin, STN Reporter

The accounting firm of Plante Moran presented the 2020-21 City Financial Audit to the City Council at its October 18, 2021, meeting.

“As a result of the audit procedure that we performed, we were able to give this year’s audit an unmodified opinion, which is the highest level of assurance that we can give a set of financial statements,” said David Helisek of Plante Moran.

Helisek went on to explain that an “unmodified opinion” means that the financial statements submitted “fairly reflect the financial position of the City as of June 30, 2021.” In other words, no further modifications need to occur to make the statements clear and transparent.

Lizzie Addy, Audit Manager for Plante Moran, guided the Council through a Powerpoint summary of the report.

In comparing General Fund Revenue to last year, Addy stated, “Total revenue was up about $536,000 from last year, or 11% up from 5 million to 5.6 million.”

While most of the categories listed at the bottom of the graph showed an increase, Addy pointed out the COVID relief funds as the primary factor in the rise.

The City received more good news when it came to General Fund Expenditures. Chelsea came in about $205,000 under budget for 2021. Addy pointed out that the City’s high capital outlay was due to its land purchase on North Freer Road.

Regarding the Comparison of General Fund Balances, Addy stated, “For the last five years, starting in 2018, it's been on an upward trend.” This past year the fund saw a net increase of about $142,000.

Helisek concluded the presentation by giving credit to the City of Chelsea for its strong financial position.

“The City has appreciated that they’ve had a proper level of fund balance in these somewhat trying times financially, “ Helisek said. “Due to the uncertainty of revenue sources some 18 months ago, there were some less than encouraging projections on revenue sharing.”

“The City has incurred unanticipated or unexpected costs or maybe costs that weren’t occurring two years ago,” he continued. “The ability to be able to still provide the level of service without worrying necessarily where the next dollar was going to come from was really a result of having that correct level of funding.”

Below is a link to the entire audit.

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