City of Rockford audit team issues unmodified opinion on 2024 financial statements

Baker Tilly issued an unmodified opinion on the City of Rockford’s 2024 annual comprehensive financial report, meaning the auditors concluded the statements present the city’s financial position fairly in accordance with accounting standards. The opinion was presented to the City Council during the July 7 meeting by Mike Malat of Baker Tilly.

The auditor told the council that an unmodified opinion is the highest level of assurance the firm can provide and affirmed that, while auditors do not inspect every dollar, they perform sufficient procedures to rely on the information. "That is your kinda your gold star. You get the unmodified opinion," Malat said. He also thanked city accounting staff for supporting the first‑year audit with the new audit firm.

The auditor highlighted two presentation changes in this year’s report. The public library is now shown as a component unit rather than included within the primary governmental funds; the change reflects the library’s separate board and legal and financial characteristics and does not alter operations, Malat said. The report also reflects adjustments to how pension contributions and certain revenue timing are presented. Those changes appear in disclosures and the management’s discussion and analysis (MD&A) and do not alter the unmodified opinion.

Malat also described other audit deliverables. Baker Tilly issued 31 opinions related to active tax increment financing (TIF) districts that exceeded statutory thresholds and said those tests were in compliance. He said a single audit of federal programs was in draft form; the firm had selected five federal programs for testing — Community Development Block Grant (CDBG), LIHEAP, Drinking Water Revolving Loan Program, Brownfield assistance, and Continuum of Care — and reported no finalized findings as of the presentation.

City staff and council members were directed to read the transmittal letter and the MD&A near the front of the report for a concise summary of financial performance and context. Malat said the audit process is lengthy and thanked accounting manager Patty Rohde and her team for their work in preparing records for review.

Council members asked clarification questions about the library presentation and the sections to review. The auditor encouraged council members to contact Baker Tilly or city finance staff with any follow‑up questions.

Malat closed by saying the audit results and the corresponding 'audit results and insights' letter contained no substantial control findings beyond the reporting changes and that the city’s financial processes had been tested thoroughly during the first year under the new auditor.