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Lockport audit: independent firm issues clean opinion; fund balances and pensions reported healthy
Summary
An independent auditor told Lockport council the city’s 2025 financial statements received an unmodified (clean) opinion, with governmental funds up about $2.3 million year-over-year and pension plans reported above common funding benchmarks.
Lindsay Fish, an audit director with Sikitch, told the Lockport committee-of-the-whole that the firm issued an unmodified opinion on the city’s financial statements for the year ending Dec. 31, 2025.
“In our opinion, the financial statements present fairly in all material respects the financial position of the city of Lockport as of December 31st, 2025,” Fish said, summarizing the independent auditor’s view of the annual comprehensive financial report. She also said Sikitch’s review found no material weaknesses in internal control over financial reporting and no instances of noncompliance with laws and regulations.
That clean opinion was accompanied by a certificate of achievement for excellence in financial reporting and a management’s discussion and analysis that staff and council were urged to read for context behind the numbers. Fish highlighted key figures in the presentation: Lockport’s governmental funds had roughly $31.6 million in total fund balance, an increase of about $2.3 million from the prior year; the city’s proprietary (utility) funds recorded roughly a $4.4 million increase in net position to about $108 million.
Fish also reviewed pension schedules included in the audit report. For the Illinois Municipal Retirement Fund (IMRF), the auditors estimated a net pension liability of about $1.4 million and reported the plan roughly 94.7% funded. For the police pension fund, Fish said the plan showed an estimated $7.1 million unfunded liability and an 86.6% funded ratio.
Councilmembers asked how those funding levels compared with peers. Fish said funding goals generally target an 80% funded ratio by 2040 and that Lockport’s position is favorable versus that benchmark. Council members and staff credited conservative contribution strategies and active trustee oversight for the strong funding metrics.
The audit presentation concluded with staff and auditors thanking finance and administrative teams for support during the first year the city worked with Sikitch as the audit firm. The report will be included in the city’s June agenda packet and is available for public review.
