The Village of Addison received an unmodified (clean) opinion on its fiscal year 2025 annual comprehensive financial report, officials said at the combined committees meeting and the village board meeting on Oct. 6, 2025. Auditors and staff highlighted a 10% increase in the Village's net position and large fund balances that exceed the Village's policy targets.

The audit presentation opened at the committees meeting with financial staff and Sikich LLP partner Nick Ava summarizing results. “An unmodified opinion is a clean opinion and the highest level of assurance that we as auditors can provide,” Ava said, adding the audit found no instances of noncompliance or questioned costs tied to grant spending. Assistant Finance Director Carolyn Iles was singled out by staff and auditors for assistance during the audit.

Why it matters: a clean audit and above-target fund balances affect the village’s ability to maintain services, borrow, and respond to emergencies. The report shows the Village’s general fund and the water/sewer operating fund both exceed the internal target of 25% for unrestricted reserves.

Key figures and details: staff reported a 10% increase in the Village’s net position, made up of a 7.9% increase in governmental activities and a 15% increase in business-type activities. Net capital assets account for roughly 86% of the net position. The general fund’s unrestricted fund balance was reported at about $27.9 million, or 68.5% of current-year expenditures, well above the Village target of 25%; staff said the FY2026 budgeted expenses will reduce that ratio to about 52.9%.

Business-type activities increased their unrestricted portion by 12.8%, “just under $1,000,000,” which staff said translates to about 42% unrestricted funds to expenditures for the water/sewer operating subfund. The police pension fund’s net position increased by $5.6 million and the funded ratio (actuarial value) rose to 60.69% from 59.28% the prior year.

Grants and compliance: auditors said the Village expended about $734,000 in state grant funds and roughly $2.3 million in federal grants during FY2025. Because the Village exceeded the federal single-audit threshold (discussed in the presentation as $750,000), Sikich issued a single-audit report and tested two major federal programs: American Rescue Plan Act (ARPA) funds (noted as about $678,000 toward utility improvements) and Community Development Block Grant (CDBG) funds (about $963,000 toward utility projects). Ava told the board the single-audit testing identified no compliance findings.

The annual comprehensive financial report and supporting documents (management’s discussion and the letter of transmittal) will be posted on the Village website by the end of the week, staff said. Committee and board members voted to accept the audit and approve placement of the report.

Additional context: the auditors noted the Village received its Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association, awarded annually; staff said Addison has received that certificate every year since 1985.

What’s next: staff and auditors fielded no substantive questions at the committee or board meetings; the board approved the report by voice vote and the audit documents will be posted online for public access.