Auditor issues qualified opinion over missing GASB 75 valuation; finds otherwise clean 2024 audit

The Village Board of Trustees reviewed the village's 2024 annual financial audit at a Committee of the Whole meeting that opened at 6:05 p.m.

Don Shaw, principal with Waterbuck and Eamon, told trustees the firm issued an independent audit report that provided "a qualified opinion for the governmental activities" because "the village did not have a GASB 75 valuation performed for their other post employment benefits." He said that aside from that modification, the audit was otherwise clean and that he found no internal control issues that would further reduce the opinion.

Shaw directed trustees to the financial statements and said the general fund showed an operating increase of about $2,800,000, which after net transfers resulted in a net increase of about $1,600,000 and an ending fund balance reported as 21,600,000. "If you have questions on fluctuations from year to year or what the numbers truly mean, this is where you want to go to find those answers," he said, referring to the management discussion and analysis and the detailed statements in the audit packet.

The auditor also reviewed the management letter included with the audit packet. He said there were four current-year recommendations and that of six prior-year recommendations, one had been implemented in the current year. Finance Director Susie Mica told trustees the management letter and the separate stapled copy in the audit book identify the items and management's planned responses.

Trustees pressed Shaw on funds that exceeded budgeted amounts and on funds that did not meet the village's reserve policy. "Per the policy, it is three months," Shaw said, noting that several funds did not meet that expectation in 2024 and that some funds showed deficit balances. He said these items are informational for the board and recommended monitoring them in 2025 and beyond via the budget book's working-cash summary for each fund.

Shaw pointed to one small deficit in the DUI technology fund, which went negative by $3,479 in 2024; he said the district received "either $52 or $54,000" in 2025 that offset the 2024 deficit. He characterized the audit note as an item the board should monitor while management implements corrective actions. On the debt-service question, Shaw said the debt-service fund had about $685,000 in principal and interest payments that exceeded the budget (page 116) and that one bond payment likely was not budgeted; he offered to review detailed revenue-and-expense reports to identify which payment caused the overage.

Finance Director Susie Mica said management drafted the responses in the management letter and expects many items to carry into 2026 and 2027 as corrective steps are implemented. Trustees thanked the finance staff and the auditor for assembling the materials and for the explanations.

There were no public comments. Trustee Ekua moved to adjourn; Trustee Constanos seconded, and the board adjourned at 6:22 p.m.

What happens next: The audit and management letter will inform the board's upcoming budget workshop and the finance team's follow-up work to implement the management-letter recommendations.