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Village auditor gives unmodified opinion, financials show strong fund balances
Summary
Johnson Block reported an unmodified opinion on the village's 2024 financial statements and highlighted healthy fund balances, stronger interest income and planned capital spending for utilities.
The village received an unmodified audit opinion on its 2024 financial statements, and auditors said the village’s governmental and utility funds remain in healthy positions.
Kevin, an auditor with Johnson Block and Company, told the Village Board that the firm issued an unmodified independent auditor’s report and found the village followed generally accepted accounting principles. The audit package includes the financial statements, management discussion and analysis, and notes to the financial statements, he said.
The auditors reported a combined governmental fund balance of about $4.8 million. The general fund decreased by roughly $93,000 but would have been up about $157,000 before transfers of $200,000 to the capital projects fund and $50,000 to the community development authority fund, the auditor said. Revenues exceeded budget by roughly $140,000, driven largely by stronger interest income in 2024. Expenditures were near budget, exceeding it by less than $1,200, the auditor added.
For utilities, the water utility posted operating income around $381,000 and showed a cash-flow decrease of about $182,000 largely due to roughly $447,000 in capital spending tied to School Street and Highway 20 projects. The sewer utility had operating income near $59,000 and a cash-flow decrease that reflected capital outlays and a $560,000 advance to a local tax-increment financing (TIF) district; both utilities nonetheless retain strong cash positions, the auditor said.
The village’s general obligation debt that counts toward the statutory borrowing limit was reported at about $10.1 million against a $31.7 million limit, a margin the auditor described as strong. The audit communications also noted typical audit adjustments and discussed recent accounting standards, including changes affecting compensated absences and pension reporting that add complexity to financial footnotes.
Board members asked about the auditor’s continuing role; Kevin said the firm helps with technical accounting treatments required by new standards and assists in preparing audit adjustments and required disclosures. Board members also asked about the effect of GASB 96-type software/accounting standards and were told the new standard had lesser impact than prior lease and pension standards.
There was no formal vote on the audit presentation; the report was presented to the board and questions were answered.
