Auditors give Elgin<br>n unmodified opinion; finance report shows 9-month general fund reserve
June 26, 2025 | Elgin, Cook County, Illinois
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Jim Sabio, principal at Sikich LLC, told the Elgin City Council on June 25 that the firm issued an unmodified opinion on the city onsolidated financial statements for the year ended 2024. "We issued an unmodified opinion," Sabio said during a 40-minute presentation that summarized the 200-plus page annual comprehensive financial report.
Sabio said the audit included a single-audit requirement because the city expended more than $750,000 in federal funds and that Sikich issued no findings of material weaknesses or instances of noncompliance. "We had no material weaknesses or significant deficiencies noted," he said, describing the report on internal control and on compliance.
The audit highlights presented to the council said the general fundnded 2024 with an unassigned fund balance of approximately $120.6 million, which Sabio described as roughly a nine-month reserve based on 2024 expenditures. Sabio noted that the general fund figure combines the riverboat fund but that the general corporate fund alone would show a comparable reserve when examined in the combining schedules.
On pension funding, Sabio said the Illinois Municipal Retirement Fund (IMRF) contributions have fallen over the last decade and that Elgin has generally funded actuarially determined contributions. He described mixed but improving funded ratios for the Police and Fire pension funds and reported the city's net pension liability for IMRF declined compared with the 2022 level because of improved investment returns in 2023.
Sabio also recommended that readers start with the management iscussion and analysis (MD&A) if they read only one section, saying, "If you only wanna read one thing in the 200-plus page report, read the MD&A." He summarized where to find government-wide statements, fund financial statements, notes and the statistical section in the report.
City staff told the council the report also included required supplementary information and combining schedules. Sikich issued an "in relation to" opinion on supplementary schedules and an unmodified opinion on compliance for the major federal programs identified, including ARPA and an IDOT Highway Planning and Construction award. The auditors also issued the three required TIF reports with unmodified "in relation to" opinions under Public Act 85-1142.
No formal action was required from the council on the audit presentation; Sabio concluded by inviting questions and noting he would answer follow-up queries from staff.
The audit presentation and related communication letter, management letter and single-audit results will be included in the city's annual consolidated financial report available from the finance department.
Ending: Council members thanked Sabio and staff for the timely audit and said they found the report useful for budget and reserve planning. The auditors noted they implemented GASB 101 (compensated absences) in the current year with no material effect on the financial statements.
Sabio said the audit included a single-audit requirement because the city expended more than $750,000 in federal funds and that Sikich issued no findings of material weaknesses or instances of noncompliance. "We had no material weaknesses or significant deficiencies noted," he said, describing the report on internal control and on compliance.
The audit highlights presented to the council said the general fundnded 2024 with an unassigned fund balance of approximately $120.6 million, which Sabio described as roughly a nine-month reserve based on 2024 expenditures. Sabio noted that the general fund figure combines the riverboat fund but that the general corporate fund alone would show a comparable reserve when examined in the combining schedules.
On pension funding, Sabio said the Illinois Municipal Retirement Fund (IMRF) contributions have fallen over the last decade and that Elgin has generally funded actuarially determined contributions. He described mixed but improving funded ratios for the Police and Fire pension funds and reported the city's net pension liability for IMRF declined compared with the 2022 level because of improved investment returns in 2023.
Sabio also recommended that readers start with the management iscussion and analysis (MD&A) if they read only one section, saying, "If you only wanna read one thing in the 200-plus page report, read the MD&A." He summarized where to find government-wide statements, fund financial statements, notes and the statistical section in the report.
City staff told the council the report also included required supplementary information and combining schedules. Sikich issued an "in relation to" opinion on supplementary schedules and an unmodified opinion on compliance for the major federal programs identified, including ARPA and an IDOT Highway Planning and Construction award. The auditors also issued the three required TIF reports with unmodified "in relation to" opinions under Public Act 85-1142.
No formal action was required from the council on the audit presentation; Sabio concluded by inviting questions and noting he would answer follow-up queries from staff.
The audit presentation and related communication letter, management letter and single-audit results will be included in the city's annual consolidated financial report available from the finance department.
Ending: Council members thanked Sabio and staff for the timely audit and said they found the report useful for budget and reserve planning. The auditors noted they implemented GASB 101 (compensated absences) in the current year with no material effect on the financial statements.
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