The Finance & Budget Committee Meeting held on July 8, 2025, by the City Council of Evanston, IL, focused primarily on the review and acceptance of the city’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ending December 31, 2024. This meeting was significant as it highlighted the city’s financial health and compliance with state regulations.

Martha Trotter, the lead principal auditor, presented the findings of the audit, emphasizing that the city is required by Illinois state statutes to undergo an independent audit annually. The audit process began in January and concluded in April and May, allowing for the inclusion of certain revenues accrued up to 90 days post fiscal year-end. Trotter noted that the city received a clean, unmodified opinion on its financial statements, indicating a high level of assurance regarding the accuracy and fairness of the financial presentation.

A key highlight of the report was the city’s achievement of the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the fiscal year 2023. This award recognizes the city’s commitment to transparency and adherence to generally accepted accounting principles (GAAP). Trotter acknowledged the efforts of the city’s finance and accounting team in preparing for the audit, which contributed to the successful outcome.

The meeting also addressed a significant change in accounting principles due to the implementation of GASB Statement 101. This change required a restatement of certain net position balances, particularly concerning compensated absences, which are now reported differently. The city’s net position increased by approximately $11.6 million for governmental activities and $3.1 million for business-type activities, reflecting a positive financial trajectory.

In addition to the main audit findings, the committee discussed the management discussion and analysis section of the ACFR, which provides context and comparative information about the city’s financial performance. This section is recommended for review as it offers insights into significant changes and trends.

Overall, the meeting underscored the city’s financial stability and commitment to transparency, with the auditors confirming no material weaknesses or noncompliance issues. As the city moves forward, the acceptance of the ACFR will guide future financial planning and budgeting efforts, ensuring continued accountability to the community.