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Auditor gives District 25 a clean opinion; board hears budget impacts from late county taxes
Summary
Baker Tilly delivered an unmodified opinion on Arlington Heights SD 25's 2024–25 financial statements and highlighted reserves, pension liabilities and capital spending; trustees also heard that late Cook County tax bills cost the district an estimated $600,000–$800,000 in interest income and will consider a resolution next month.
Jason Coyle, principal with audit firm Baker Tilly, told the Arlington Heights School District 25 Board of Education on Jan. 20 that the district’s financial statements for the fiscal year ended June 30, 2025, received an unmodified (clean) opinion, meaning the auditors believe the statements are accurate in all material respects.
Coyle said the district’s revenues are heavily tax-dependent, with roughly 69 percent of revenues coming from property taxes, and pointed to long-term obligations — including teacher pension and other post-employment liabilities — totaling about $20,000,000 at fiscal year-end. He also noted the district’s education-fund reserve ratio was approximately 59 percent after removing the state’s on-behalf TRS payment, indicating the district could theoretically meet more than half a year of education spending without new receipts.
The auditor summarized the year’s results: the district’s general operating fund saw a year-over-year decrease in fund balance (the report characterizes it as around $1.7 million in one line) and total district funds decreased by about $7.2 million, largely driven by capital projects and investments in buildings and equipment. Coyle said the single-audit of federal programs was still being finalized but reported no findings on a tested major federal grant to date.
Superintendent Dr. Kaye and board members used the audit presentation to frame larger fiscal pressures. Later in the meeting Dr. Kaye said delays in Cook County’s issuance of second-installment property tax bills this year forced the district to lean on reserves to meet cash-flow needs and cost the district an estimated $600,000–$800,000 in lost interest income. "Somewhere between 600 and $800,000 worth of lost interest income," she said, and staff indicated they had discussed tax-anticipation warrants as a contingency if delays continued.
Board members praised the district’s financial reporting and the work of Stacy and the finance team. Trustees pressed only briefly for follow-up detail and were told the management’s discussion and analysis section of the annual comprehensive financial report includes pie charts, trend data and a 10-year statistical section that board members should review for context.
What’s next: Baker Tilly’s single-audit work will be finalized pending federal agency information, and the board asked staff to bring any additional clarifications about reserve levels, projected interest losses and contingency options back to the board if needed.
