Finance director details audit backlog, insurance billing cleanup and $2.6 million police‑pension shortfall

Village Finance Director presented the monthly financial report for August 2025 and told trustees that the village’s accounting and audit cycle remains behind schedule after prior administrative lapses.

Director Mica said general fund year‑to‑date revenues as of Aug. 31 were roughly $16.1 million (about 66% of the annual budget benchmark) but emphasized that revenues are $4.4 million lower than at the same point in 2024; he said the comparison is skewed by a $2.2 million FEMA reimbursement recorded in the prior year. Mica also told the board the 2024 audit is not complete and auditors will not conduct field work until October or November; as a result, some invoices have required manual work to ensure they’re valid before payment.

“We have a $2,600,000 shortfall that resulted from the previous administration’s failure to budget for the police pension contribution,” Director Mica said. Because of that shortfall, he said he has delayed some internal transfers—such as interfund transfers to the capital and street funds—while departments and finance staff complete budget reviews and determine what transfers will be necessary at year end.

Trustees pressed staff on several billing items. Trustee Constatos asked about health‑insurance payments that included charges for former employees; HR and finance staff said they found multiple employees (estimated “at least 4 or 5”) who had not been removed promptly from benefit rolls and that those charges have been cleaned up and, staff said, the village should be current now.

Director Mica warned that additional late fees may be forthcoming from IRMA (the village’s risk pool) because required reports were filed late; he said the village expects invoices for late fees next month and will note them on upcoming bill lists.

Mica described the cash‑on‑hand position as roughly 113 days before considering pending transfers and said that figure will fall after the transfers required to make the police pension whole are processed. He told trustees finance is working through the backlog of bank reconciliations and cautioned that preparing an accurate audited financial statement for 2024 remains a priority.

Trustees asked for more detail in future packet materials about where spending requests are charged in the budget and urged staff to include line‑item references for agenda items that request approvals. Manager Rivas and Director Mica said they are working to improve packet detail and to complete reconciliations.

The Board then approved the consent agenda, having removed one bill‑list item (9a) for discussion and receiving staff answers before the consent vote.