Benton Harbor Receives Clean, Unmodified Audit

City's net position grew, finishing fiscal year $1.4 million ahead despite budgeting for deficit

Mar. 18, 2026 at 2:15am

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The city of Benton Harbor has received a clean and unmodified audit for Fiscal Year 2024-2025, with the city's net position growing and finishing the year $1.4 million ahead despite budgeting for a deficit of over $900,000. City commissioners heard from the auditing firm Rehmann that there was improvement throughout the year, though one adverse opinion was noted related to the absence of housing commission information.

Why it matters

A clean audit is an important milestone for Benton Harbor, which has faced significant financial challenges in recent years. The positive audit results indicate the city is on more stable financial footing and making progress in improving its fiscal management and oversight.

The details

According to the audit presented by Peter Woldman of Rehmann, the city's revenue was higher than its expenses, resulting in a net gain for the fiscal year. However, the audit did note one adverse opinion related to the absence of housing commission information, which Woldman said was not the city's fault. City officials also acknowledged some issues with tracking credit card receipts due to staffing challenges, but said they have since hired someone to handle accounts payable well.

  • The audit covered Fiscal Year 2024-2025.
  • City commissioners heard the audit results on Monday, March 17, 2026.

The players

Peter Woldman

An auditor with the firm Rehmann who presented the city's audit results to commissioners.

Marcus Muhammad

The mayor of Benton Harbor, who said the city has faced many cash flow challenges but has come out ahead.

Ethel Clark Griffin

A city commissioner who questioned why some credit card receipts weren't accounted for.

Alex Little

Benton Harbor's city manager, who acknowledged staffing issues have made tracking down all credit card receipts a challenge.

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What they’re saying

“Your revenue was higher than your expenses. So, a net gain for the year.”

— Peter Woldman, Auditor, Rehmann

“We've gone through turnover with different people, going through training periods and the accounts payable position. We do have a person now that handles it extremely well. But as I said, I sign and approve just about every purchase that goes through the city.”

— Alex Little, City Manager

What’s next

The audit did not take into account any emergency transfers of city income tax money to the general fund, which could impact the city's financial standing going forward.

The takeaway

Benton Harbor's clean audit represents an important step in the city's ongoing efforts to improve its fiscal management and oversight, though challenges remain around staffing and tracking expenses. The positive results indicate the city is making progress in stabilizing its finances and building a stronger foundation for the future.