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Auditors give Village of Hartland a clean opinion on 2024 financials; fund balances strong
Summary
Baker Tilly presented the 2024 audit to trustees, issuing an unmodified (clean) opinion and reporting a robust general fund balance, TIF deficits covered by future increments, and utility balances affected by ARPA spending.
Baker Tilly Senior Manager Michelle Walter presented the Village of Hartland’s 2024 financial audit and issued an unmodified opinion, commonly called a clean opinion, indicating the village’s financial statements were free of material misstatement.
Walter said the village’s general fund had roughly $9.6 million in revenues and $8.7 million in expenditures for the year, producing an increase in general‑fund balance of about $704,000 and an ending general‑fund balance of roughly $7.3 million. Of that balance, about $5.6 million was unassigned; the village’s policy requires maintaining at least 25 percent of annual general fund revenues in unassigned fund balance, and the village’s unassigned balance was about 58.9 percent of annual revenues at year‑end, Walter said.
Walter highlighted other findings in the auditor’s report and the management’s discussion and analysis section: several TIF (tax increment finance) districts (TIF 4, TIF 6 and TIF 7) showed deficit fund balances in 2024; the capital projects fund decreased by about $1.4 million (partly to cover TID shortfalls), and the corporate reserve increased by about $128,000 to roughly $1.6 million. The water utility reported approximately $1.4 million in operating results for the year, driven in part by spending ARPA funds on water projects; that raised total utility net position but much of it is net investment in capital assets.
Walter said auditors found no material weaknesses or significant deficiencies in internal control and offered only best‑practice recommendations related to utility billing and other items. The auditors also noted a new accounting standard required additional disclosure items (emphasis of matter) but no changes to village operations.
Trustees and staff asked questions about fund‑balance classifications, TIF accounting, capital project designations and long‑term debt. Walter said the village’s governmental funds carried about $18.8 million in long‑term debt (mostly general obligation) and business‑type activities (water and sewer) held about $2.1 million. The village’s legal debt limit was roughly $105 million and the village had about $19 million outstanding at year‑end.
The audit presentation concluded with staff and auditors agreeing to follow up on best‑practice suggestions and the auditor offering continued support between audits.
The audit was accepted for presentation; trustees did not note any disagreements with the auditor’s findings in the meeting discussion.
