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Arcola accepts FY2024 audit; auditors issue unmodified opinion
Summary
The Arcola City Council unanimously accepted the city's FY2024 audit, which carried an unmodified opinion. Auditors reported a $21.61 million net position, healthy reserves and a well-funded pension; the water/sewer fund showed a modest operating loss.
The Arcola City Council voted Oct. 13 to accept the city's fiscal year 2024 financial audit, which the city's independent auditor described as an "unmodified opinion." John Watson, president of Brooks Watson & Company LLC, told the council the unmodified opinion is the highest level of assurance an auditor can provide. "City received an unmodified opinion so that's a good thing," he said.
The audit showed a citywide net position of $21,610,001.67, an increase of about $681,000 from the prior year. Governmental funds had a combined ending fund balance of roughly $3.8 million, an increase of about $402,000. Watson said the city's general fund unassigned balance was about $3,369,000, roughly 72% of annual general fund expenditures, which he described as "a very healthy reserve." The auditor also reported the water and sewer proprietary fund had operating revenues of about $2,099,000 and operating expenses of about $2,231,000, producing an operating loss of roughly $132,000 for the year.
Council members discussed the audit letters and internal-control items included in the back of the report; Watson said there was nothing indicating material fraud or theft. The council accepted the audit by motion. The acceptance carries routine follow-up: the administration and finance staff will track any proposed audit adjustments and address internal-control recommendations noted by the auditors.
