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Finance presenter flags possible decades-long TIF 5 accounting issues; trustees press for reconciliation
Summary
A village finance presenter reported large interfund receivables tied to TIF 5 and recommended a detailed reconciliation and possible write-offs; trustees alleged prior administrations used TIF funds for insurance and other operating expenses and asked for a deeper review.
During the regular meeting the board received an extended presentation on the village’s financial statements and interfund balances. Ameribaly reviewed consolidated governmental funds and told trustees the general fund showed revenues of about $17.2 million and expenditures of about $10.3 million, producing a roughly $6.8 million surplus year to date through November.
Ameribaly drew attention to significant interfund receivables and payables and recommended a full reconciliation. “My recommendation is going to be that a lot of those balances…are uncollectible receivable payables, and proper accounting is anything that is not collectible from a receivable or payable standpoint is eliminated. It’s written off,” he told the board.
Trustees and residents pressed on the historical origin of the balances, which Ameribaly traced in part to past transactions involving TIF 5. One trustee alleged that prior managers used TIF cash to cover recurring costs — including health insurance — and estimated the total at about $22,000,000, saying some transactions were made without board approval. That trustee asserted the behavior amounted to deliberate concealment and suggested possible criminal consequences; Ameribaly said the assertion would require a forensic historical review to confirm because standard annual audits reconcile current‑period book balances rather than tracing two decades of transactions.
Board discussion noted that prior audits capture balances as presented in the books for a defined fiscal period; auditors typically do not perform the multi‑decade forensic tracing trustees said is now needed. Ameribaly said he plans to reconcile interfund balances, identify items that are uncollectible, and recommend board action to adjust the books where appropriate. He said some entries may reflect bad accounting practice rather than true cash shortages, and that the village could choose to eliminate uncollectible receivables after reconciliation.
Trustees requested auditor comments and historical audit reports be gathered as part of the follow-up and discussed the need to determine whether funds can be recouped. The board did not take a formal forensic‑audit vote at the meeting but instructed staff to proceed with reconciliation work and return with findings for possible board action.
