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McHenry audit shows clean opinion; council presses staff on reserves and TIF cashflow
Summary
City auditor Kevin Smith presented a clean, unmodified opinion for the fiscal year ending April 30, 2025, and outlined a new GASB requirement to accrue compensated absences. Councilors questioned the use and timing of unassigned general fund balances and a short-term negative cash position in the city's TIF fund.
Kevin Smith of Assessian told the City Council on Monday that the city's fiscal-year financial statements earned a clean, unmodified audit opinion. “Clean, unmodified opinion on the report, which is the best opinion you can get,” Smith said.
Smith highlighted a new accounting standard for compensated absences that requires the city to accrue earned but unused sick time; he described the change as an acceleration of liabilities already owed rather than a new expense. “Now the new standard requires you to accrue time that's earned for such a sick time ... it's salaries that you guys are gonna pay out one way or another,” Smith said.
Smith reviewed the report's key…
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