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Village accepts 2025 audit showing stronger fund balance, flags utility notes
Summary
The Village of Cross Plains board on May 11 accepted its draft 2025 audit, which showed a $608,000 increase in fund balance and healthy unassigned reserves; auditors noted one‑time reservoir costs that reduced utility return and recommended minor internal‑control tweaks.
The Village of Cross Plains board voted May 11 to accept the village’s draft 2025 audit after a presentation by external auditors.
Auditor Brad Hoffmeister said the independent auditors issued a draft unmodified opinion on the financial statements and highlighted items for the board’s attention, including accounting adjustments and a segregation‑of‑duties observation that commonly arises in small municipal offices. ‘‘We typically see journal entry adjustments for capital assets and depreciation,’’ Hoffmeister said.
Megan Johnson, who helped lead the audit presentation, summarized the key figures: the general fund’s fund balance rose by about $608,000 to just over $2.3 million; about 56% of the 2026 budgeted expenses are covered by unassigned fund balance. Water and sewer cash balances were reported at roughly $986,000 and $3.1 million, respectively.
Johnson and staff also discussed utility results. The audit noted a one‑time reservoir‑painting expense that cannot be capitalized under PSC rules and reduced the water utility’s rate‑of‑return metric (0.35% reported versus a 4.9% benchmark). Hoffmeister said the impact is one‑time and that the village remains eligible to pursue a simplified rate increase if it chooses.
Trustees asked detailed questions about recent loan draws and bond balances. The auditors explained that some direct‑borrowing state loans are drawn over multiple years as projects progress, which can make year‑to‑year bond columns appear to increase temporarily.
After questions, a trustee moved to accept the audit; the board approved the motion by voice vote.
The board’s acceptance does not change the audit’s draft status; staff said minor subsequent‑event footnote edits could be required if the board approves actions later that qualify as subsequent events under accounting standards.
