Auditor: Elmwood Park CUSD 401 posts $5.7 million education-fund surplus; issues clean opinion
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Summary
Baker Tilly principal CPA Michael Mala told the Elmwood Park CUSD 401 board the district received an unmodified (clean) audit opinion for fiscal 2025 and reported about a $5.7 million surplus in the education fund; auditors noted minor, easily resolved federal compliance observations and recommended continued monitoring of pension and revenue timing.
Michael Mala, principal CPA for Baker Tilly, told the Elmwood Park CUSD 401 Board of Education that the firm issued an unmodified opinion on the district’s fiscal 2025 financial statements and highlighted an approximately $5.7 million increase in the education fund surplus compared with the prior year.
That unmodified opinion — what Mala described as a “clean bill of health” — means the auditors believe the district’s financial statements are reliable for decision-making. Mala said the audit reflects the district’s own accounting and that Baker Tilly’s role is to confirm the numbers meet required standards.
The auditors noted two federal single-audit observations tied to program documentation and a meal-count reconciliation; Mala characterized both as minor and said they had already been or would be resolved through recommended corrective actions. He also reported the district’s financial profile score to the Illinois State Board of Education as 3.7, a top-tier recognition.
Board members asked why administration and business expenses increased substantially on the consolidated statement. Mala explained the apparent rise on page 7 is driven by consolidated accounting entries — chiefly the recognition of pension and post-employment (OPEB) liabilities — not by day-to-day operating performance. "We have to put pension liabilities on the books and that can sway those numbers substantially," Mala said, adding that the education-fund, which the board watches for operational budgeting, still showed the strong surplus.
The presentation also addressed the district’s pension position. Mala said both teacher and non-teacher plans (TRS and IMRF) showed slight improvement year over year, which can reduce future required district contributions if the trend continues.
Board members pressed on timing issues with county tax distributions. Mala said delays in county payments are primarily a timing matter: the district records receivables for monies levied but not yet distributed and could see an impact on interest income and comparisons to budgeted expectations if delays persist. He recommended monitoring and, if necessary, targeted budget adjustments when projected impacts exceed material thresholds.
No formal board action was taken on the audit report itself during the meeting; auditors will finalize required submissions to state oversight agencies. The board thanked district business-office staff for supporting the audit work.
What’s next: Baker Tilly will complete remaining administrative filings tied to the audit and the board can expect ongoing updates on any corrective steps for the federal single-audit items.