External auditor gives Sparta a clean opinion, praises finance staff

Dan, the village’s external auditor, presented the independent auditor’s report and management letter and said the firm issued an unmodified (clean) opinion on the village’s financial statements. "We come right to the point in the second paragraph where we give an opinion," he told the council, noting the audit found only "one or two minor adjustments" related to net pension and OPEB liabilities.

Dan told the council the general fund ended the year with about $2.7 million in fund balance — roughly 72% when compared to revenues, well above statewide averages he cited — and that the street funds held $518,000 restricted for street improvements. He said the sewer fund’s unrestricted net position was about $1.8 million and the water fund about $768,000, and described those reserves as appropriate for covering potential repairs or replacements.

On the defined‑benefit pension plan, Dan reported a total liability of about $6.9 million and a net liability near $1.6 million, with a funding ratio of roughly 76%. He noted recent changes to actuarial assumptions that made the funding measure more conservative and said the trend has improved from prior years. "You’re probably at a better place with the people that you have, the team that you have and the finances you have than I’ve seen in those 25 years," he said, and recommended the village continue its current practices.

Dan also praised the village’s accounting staff by name, saying Dave and Kristen had done an excellent job and that the small number of audit adjustments reflected strong internal controls. Council members and staff thanked him for the review; no formal action was required on the audit presentation.

The council indicated the report will remain part of the public record and that staff would continue to follow the recommendations described in the management letter.