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Itasca receives clean audit for FY2024; police pension funded at roughly 43.5%
Summary
Sikich delivered an unmodified (clean) audit opinion for the Village of Itasca’s fiscal year ending 04/30/2024, noting strong operating fund results and an improving police pension funded ratio of 43.5%, while recommending attention to one carryover internal-control item on sales-tax card payments.
The Village of Itasca received an unmodified (clean) audit opinion for fiscal year 2024, the auditor told the Village Board on Nov. 5.
"We're pleased to present an unmodified or clean audit opinion," said Brian Lefever of Sikich as he presented the annual financial report for the year ending April 30, 2024.
The audit accompanying materials show the General Fund recorded roughly $16.8 million in revenues and $12.3 million in expenditures; after transfers for capital, the General Fund increased its fund balance by about $1,539,000. The water and sewer fund reported operating revenues of about $11.2 million and operating expenses of about $7.2 million, with depreciation and a $4.6 million transfer from a capital fund noted as drivers of capital funding.
Lefever also summarized pension activity. The village contributed $2,157,000 to its police pension fund as required by the actuary; investment income for the police pension was about $1.75 million. Using the actuary’s assumptions, the total pension liability was presented at roughly $46.6 million against plan assets of about $20.27 million, leaving a net pension liability near $26.33 million and a funded ratio of approximately 43.5 percent.
Auditors explained the funded ratio reflects conservative actuarial assumptions — the village uses a 6.5 percent investment-rate assumption — and noted that statewide pools and different assumptions (for example 6.8–7.0 percent) are not directly comparable. Lefever said smoothing of returns over a five‑year period reduces the impact of single‑year market swings.
Board members praised staff for the timely completion of the audit and for maintaining strong balances in the primary operating funds. Trustees noted the audit contained one internal‑control comment carried over from the prior fiscal year related to sales tax on credit‑card payments; staff said they are addressing that item.
The board was told the MD&A (Management’s Discussion & Analysis) and the shorter audit summary in the packet provide good starting points for members who want more detail. Staff said the board will formally approve the audit documents later in the meeting.
What happens next: the board acknowledged the report and will include the audit documents in the consent/approval actions later in the agenda.
