FLINT, Mich. (Michigan News Source) – The state of Michigan sent the city of Flint a letter on Feb. 12 stating that it was jeopardizing state funding if it didn’t file an annual financial report for fiscal year 2024.
This annual financial report is named “F-65”. This report contains all the basic city financial records, such as a breakdown of the tax revenue streams.
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The city of Flint had asked the state for an extension to file the report. It was approved and the new deadline was Feb. 3.
The city of Flint has not responded to emails seeking comment.
As previously reported by Michigan News Source, on Nov. 1, 2024, the city’s independent auditing firm Rehmann wrote the city a letter spelling out the problems the accounting firm had completing its audit of the 2023 fiscal year.
“The timing of our audit procedures was significantly delayed from the schedule agreed to during the planning stages of our engagement due to appropriate supporting information not being made available to us in a timely manner, numerous audit adjustments due to lack of reconciling accounts and not posting necessary adjustments timely, multiple incorrect prepared Schedules of Expenditures of Federal Awards, not properly implementing GASB 87 and 96, and unreconciled capital asset schedules,” Rehmann stated. “These issues resulted in the audit taking a significantly extended amount of time to complete.”
The city released its Annual Comprehensive Financial Report for the 2023 fiscal year that ended June 30, 2023 on Nov. 1, 2024.
The state notified the Flint Housing Commission in a Feb. 4 letter that it was withholding state revenue for it not filing a financial report. The housing commission has had a history of issues with completing proper financial audits.
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The independent auditing firm Rehmann noted that the Flint Housing Commission didn’t file necessary audits for the city of Flint’s 2023 annual audit.
“We noted the Flint Housing Commission (the “Commission”) Component Unit was not included in the financial statements of the City,” According to GASB standards, the Commission should be included because it meets the criteria for financial accountability,” Rehmann stated. “The exclusion appears to be due to significant delays in financial reporting by the Commission. This omission results in incomplete financial reporting. We recommend including the Flint Housing Commission in future financial statements to ensure accuracy.”