HomeMy WebLinkAbout2024 - Brownfield Redevelopment Auth. Governance Letter on Financial Statements Audit 2425 E.Grand River Ave.,
(00-pa M a n e r Suite 1,Lansing,MI 48912
2517.323.7500
osterisan0 517.323.6346
December 10,2024
The Honorable Mayor,Members of the City Council of the
City of Lansing,and Members of the Board of Directors
of the Lansing Brownfield Redevelopment Authority
Lansing,Michigan
We have audited the financial statements of the governmental activities and the major fund of the Lansing
Brownfield Redevelopment Authority (the Authority), a discretely presented component unit of the City of
Lansing, Michigan, for the year ended June 30, 2024. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards and Government Auditing
Standards, as well as certain information related to the planned scope and timing of our audit. We have
communicated such information in our letter to City Council dated October 31, 2024. Professional standards
also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Lansing Brownfield Redevelopment Authority are described in Note 1 to the
financial statements. We noted no transactions entered into by the Lansing Brownfield Redevelopment
Authority during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimate affecting the financial statements was:
The Authority is party to loan agreements in which the associated loans are expected to be repaid by future
collections of tax increment revenues related to the properties being redeveloped. Because of the
uncertainty of future tax captures, management has estimated the collectability of such receivables to be
zero and,therefore,no balance is reported in either the government-wide or fund financial statements.
We evaluated the key factors and assumptions used to develop this estimate in determining that it is reasonable
in relation to the financial statements as a whole.
The financial statement disclosures are neutral,consistent,and clear.
Difculties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements that were detected as a result of audit procedures. The
misstatements that were corrected by management related to various year-end accrual adjustments.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter,whether or not resolved to our satisfaction,that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 10, 2024.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a"second opinion" on certain situations. If a consultation involves application of
an accounting principle to the Authority's financial statements or a determination of the type of auditor's opinion
that may be expressed on those statements, our professional standards require the consulting accountant to
check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such
consultations with other accountants.
OtherAudit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Authority's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the required supplementary information(RSI)which are required and
supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the
methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit of
the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance
on the RSI.
Restriction on Use
This information is intended solely for the use of City Council,the Board of Directors, and management of the
City and the Lansing Brownfield Redevelopment Authority and is not intended to be,and should not be,used by
anyone other than these specified parties.
Very truly yours,
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