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Baker Tilly gives Ashwaubenon a clean audit; utilities prompt rate‑review recommendations
Summary
Baker Tilly issued an unmodified opinion on Ashwaubenon's 2025 financial statements. The general fund finished $195,000 better than budget, helped by $494,000 in investment income and a $972,000 TIF transfer; auditors flagged that water and sewer utilities have operating revenues close to or below expenses and recommended evaluating rates.
Baker Tilly presented the Village of Ashwaubenon's 2025 audit to the board on June 23 and issued an unmodified (clean) opinion on the village's financial statements.
Justin Hoagland, principal at Baker Tilly, reviewed the highlights: the general fund had a $195,000 net income compared with a budgeted use of $252,000, driven largely by $494,000 of investment income above budget and a $972,000 transfer from a closed tax‑increment financing (TIF) foreclosure account. "You actually had a net income of 195,000 in the general fund," Hoagland said, and the unassigned fund balance equated to about 26% of the subsequent‑year budget (roughly three months of operating coverage).
Hoagland said Baker Tilly issued a clean audit opinion and did not identify material internal‑control deficiencies related to segregation of duties. He noted the firm issues a material‑weakness entry in some municipalities only because the auditing firm prepares clients' financial statements; that practice explains a standard material‑weakness notation that does not reflect a local control failure.
The auditor recommended the village monitor its utility funds. The water utility had about 5.28 months of cash on hand but operating revenues and expenses are very close, prompting a suggestion to study rates. The sewer utility showed operating expenses exceeding operating revenues and held only about 1.63 months of cash on hand. "If your operating expenses are higher than operating revenues for a considerable period of time, you're gonna run out of money," Hoagland warned, recommending a rate study and continued monitoring.
The stormwater utility performed better, with positive operating margins and substantial cash reserves. The board thanked the auditor and staff for the cooperative audit process.
No formal board action was required; the presentation informed the board and will guide future budget and rate decisions.
