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Auditors deliver clean opinion; $462,000 village contribution and new Yahara River Housing LLC reflected in 2024 statements
Summary
Baker Tilly told the Community Development Authority it issued an unmodified opinion on the CDA's 2024 financial statements, noted a new entity (Yahara River Housing LLC) resulting from a Section 18 disposition, and flagged a material‑weakness disclosure tied to the auditor preparing those statements. The report also highlights a $462,000 village contribution that drove most of the year’s net increase.
Justin Hogland, principal at Baker Tilly, told the Community Development Authority on July 10 that the firm issued an unmodified ("clean") opinion on the CDA’s 2024 financial statements and provided an accompanying "reporting and insights" document for board review.
Hogland said the financials now show a new entity, "Yahara River Housing LLC," reflecting the Section 18 disposition that moved several public‑housing properties out of the public housing fund. "You'll see in your financial statements that you do have a new entity that's shown—that's the River Housing LLC," Hogland said, explaining the move was intended to "have a more stable revenue source going forward" as properties shift to market‑rate operations.
Hogland summarized three industry trends the board should watch—changes in the federal funding environment, digital transformation of municipal processes and cybersecurity threats—and pointed the board to Baker Tilly’s Board of Commissioner Resources for additional guidance. He also noted that because Baker Tilly prepares the CDA’s financial statements, the firm issues a material‑weakness disclosure over financial reporting, a common outcome for clients whose statements are prepared by the auditor.
On the numbers, Hogland said the CDA recorded a $529,000 change in net position for 2024, and that a one‑time $462,000 contribution from the village to the redevelopment fund was the main driver of year‑over‑year asset growth. "You did receive a ... $462,000 donation from the village which went to the redevelopment fund," he said, adding that if the donation is excluded, net results would be comparable to 2023.
Board members asked clarifying questions about whether the $462,000 was a loan or gift (Hogland confirmed it was a donation) and about the makeup of the "general expense" line, which staff said can be broken out in the back schedules for greater detail. Hogland also offered to connect the CDA with Baker Tilly consultants on cybersecurity and digital transformation as needed.
The board accepted the audit presentation and had no further requests beyond routine follow‑up items and availability of supporting schedules.
