Auditor issues unmodified opinion; Normal council accepts FY2024-25 audited financial statements and federal compliance report

Normal'The Town of Normal Council on Sept. 15 heard the town's external auditor, Anthony Cervini of Sikich LLP, present the fiscal-year 2025 audit and accepted the audited financial statements and federal compliance reports.

Cervini told the council Sikich had issued an unmodified (clean) opinion on the town's financial statements for the year ended March 31, 2025, and "we identified no material weaknesses or significant deficiencies from an audit standpoint in terms of the town processes or internal controls." He said the firm issued the annual comprehensive financial report and several other audit documents, and noted two restatements: an alignment of investment and interest income related to ARPA reporting and an accounting-principles change under GASB guidance affecting accrued leave reporting.

On federal spending, Cervini said the town recorded nearly $9.9 million in federal expenditures for fiscal 2025, of which about $6.8 million related to American Rescue Plan Act (ARPA) funds; the town also received a National Infrastructure Investment Grant passed through IDOT of about $2.1 million. Those two programs accounted for roughly 89.5% of federal expenditures tested in the single-audit. Cervini said the single-audit found no findings, no questioned costs and no instances of noncompliance for the major programs tested.

Council members asked questions about audit technology and cybersecurity. Councilmember Smith asked whether auditors used artificial intelligence in testing; Cervini replied that the firm uses analytic tools built into audit software but that AI applications for substantive audit testing remain in development and human verification remains essential. On cybersecurity, Cervini said auditors review user-access listings and transaction-approval controls but do not perform in-depth IT systems audits unless specifically engaged to do so.

After the presentation, the council adopted a resolution accepting the audited financial statements and the report on internal controls. The council also approved the federal compliance audit resolution. Both were approved on roll call.

Details: Cervini recommended that the town continue to contribute actuarially determined amounts to pension and OPEB obligations and highlighted that government-wide unfunded pension and OPEB liabilities had a material effect on the reported unrestricted net position. He pointed to strength in the town's enterprise funds and a favorable reserve position in the general fund while noting the actuarial and GASB-driven entries that affected year-over-year presentation.