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Mount Vernon audit returns unqualified opinion as several funds show mixed results
Summary
Krehbiel & Associates reported an unqualified 2021–22 audit with no findings; the city posted a $2.1 million net increase overall but pension funds showed market-driven declines, and several enterprise funds had mixed results.
Krehbiel & Associates presented the City of Mount Vernon’s 2021–22 audit and issued an unqualified opinion with no findings, auditor Greg Charlton told the City Council on Jan. 17.
Charlton said the General Corporate Fund balance increased by $1.4 million even though it had been budgeted to decrease by $993,000, representing a roughly $2.4 million improvement from budget. Revenues for that fund were reported at $18.8 million, about $2.2 million higher than the prior year, while expenditures increased by about $852,000.
Enterprise funds showed mixed performance. The Water Fund recorded net income of $2.2 million, driven by capital contributions tied to infrastructure grants. The Sewer Fund showed a loss of $165,000 that includes $731,000 in depreciation; Charlton noted that excluding depreciation the sewer operation cash-flowed. The Sanitation Fund had a net loss of approximately $60,000; the council later raised sanitation fees for the current fiscal year to $21.50 to address that shortfall.
TIF funds provided targeted investments: the Downtown TIF reported $492,000 in improvements, the Route 15/I‑57 TIF $268,000, and the Industrial Park TIF $286,000. The city’s Health Insurance Fund decreased net assets by about $275,000 but retains prior-year surplus, and the auditor said the fund is performing as intended.
Pension valuations reflected the market downturn as of valuation dates. The Police Pension Fund lost about $1.9 million in market value and carries a Net Pension Liability of $17 million as of its April 30, 2022 valuation. The Fire Pension Fund’s market value declined roughly $1.2 million with a Net Pension Liability of $13.9 million (valued April 30, 2022). By contrast, the Illinois Municipal Retirement Fund (IMRF) valuation as of Dec. 31, 2021 showed a net increase of $4.3 million.
Across all city funds at April 30, 2022, total revenues were up about $4.4 million while expenditures increased by roughly $2.3 million, producing an overall net increase of about $2.1 million in city net position. Charlton closed his presentation by thanking the mayor, council and staff and asking if there were any questions.
The council did not take action on the audit presentation itself; the report was presented for review and discussion.
