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Audit: Arlington Heights SD 25 posts strong reserves; $20 million in pension liabilities appear only on annual statements
Summary
External auditors from Baker Tilly told the board the district's 2023–24 financial statements show solid reserves, a one‑year $30.6 million draw on capital funds tied to construction, and about $20 million in net pension liabilities that are disclosed annually. The single audit of federal funds produced no findings.
Jason Coyle, principal at audit firm Baker Tilly, presented the Arlington Heights School District 25 annual comprehensive financial report for the fiscal year ended June 30, 2024, and answered board questions at the Jan. 14 board meeting.
Coyle said the district issues an annual comprehensive financial report (ACFAR) that goes beyond basic audit requirements and provides trend data and other historical information. "About 71% of your funding is from property taxes," he told the board, and "almost 80% of your funding is going to the education, transportation, and caring of students." He said those percentages were similar to the prior year.
The audit highlighted three items board members and community readers should note. First, the district's combined fund balance declined by about $30,600,000 in 2024, a decrease Coyle said was “driven by the spend down in your capital projects fund” after bonds issued in a prior year were spent on building improvements. Second, the general fund (education, working cash and tort combined for financial reporting) increased in fund balance by about $5,300,000. Third, the district reports roughly $20,000,000 in net pension liabilities on the combined statement; Coyle noted the state picks up most of the Teachers' Retirement System (TRS) liability and that pension figures are reported annually rather than monthly.
Coyle also summarized state reporting and federal audit results. He said District 25's Illinois State Board of Education financial profile score remained strong at 3.8 out of 4.0, with a lower long‑term debt ratio keeping it from a perfect score. He added the district's single audit of federal programs had no findings.
Board members did not raise substantive questions after the presentation; Coyle concluded by encouraging them to read the management’s discussion and analysis section of the ACFAR for more context and longer term trend tables.
Ending: The district's audit materials, including the ACFAR and related schedules, are available to the board and public; Coyle recommended board members consult the management discussion and analysis when they have time.
