Council acknowledges FY2025 audit; auditors issue clean opinion

The Lake Forest City Council on Nov. 3 acknowledged receipt of the fiscal year 2025 Annual Comprehensive Financial Report prepared by outside auditor Baker Tilly. Mark Dillon, chair of the city’s audit committee, reported that Baker Tilly issued a clean (unqualified) opinion and identified no significant deficiencies or material weaknesses in the audit.

Dillon told council the city’s net position increased by about $15 million year over year, including roughly $5.4 million in increased cash and investments, $5.2 million in capital-asset additions (primarily transfers from construction-in-progress tied to the Beach Pathway and Deerpath Athletic Park), and a $2.7 million reduction in pension liability tied to favorable investment returns in the city’s pension funds.

Why it matters: An unqualified audit opinion signals the auditor concluded the city’s financial statements present fairly in all material respects under generally accepted accounting principles. The council’s formal acknowledgement of receipt does not change the financial statements but completes a public step in the city’s reporting process.

Council action: The council acknowledged receipt of the report and approved that acknowledgement by roll-call vote (8–0). No substantive audit findings were reported by the committee.

Background: Dillon also reviewed foundation highlights and noted clean reporting and reserve increases across several local foundations that support city services.