An audit of Flint finances shows more liabilties than assets

FLINT (WJRT)- (01/15/2020)- Wednesday, members of Flint City Council were presented with the findings of an audit for the fiscal year 2019.

It showed 12 major issues that city leaders need to address right away they include:

The City's pension and retiree healthcare is underfunded by more $370 million.

The City needs more high level employees in its Finance department. Flint currently is without a CFO.

No process to properly document and approve cash overages/shortages.

Cash drawers not locked and often contain significant amounts of cash.

City issued credit card transactions were not appropriately approved in accordance with city policy.

The city owes $700,000, but doesn't know to who.

After the meeting, council members talked about the financial challenges the city is facing.

"The city's finances are in trouble. We have overwhelming liabilities for healthcare benefits and OPED, that's a reality. We have something like over $300 million, in those liabilities. So if you do it at your house, you have all this debt and you have this income, you are in a bad situation. What we are doing our best to do, is to maintain the ability to provide the day to day services, keep the employees that we have, is to allocate and spend wisely," said City Council President, Monica Galloway.

The city must submit the audit to the state by the end of the month.

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