County audit: Baker Tilly issues clean opinion; general fund posts $1.1M revenue surplus
June 05, 2026 | McHenry County, Illinois
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Baker Tilly delivered an unmodified (clean) opinion on McHenry County's 2025 financial statements and reported no material weaknesses or significant deficiencies, the county's auditors told the board at its June 4 audit meeting.
"We issued a clear opinion on your financial statements," said John Raider, director at Baker Tilly, adding that the firm was able to issue finals May 21, a week earlier than the prior year because county staff were well prepared.
The audit highlights showed the county's general fund reported $103,000,000 in revenues versus a budgeted $101,000,000, a $1.1 million favorable variance driven largely by $3.1 million in higher sales-tax receipts plus stronger penalties/fees, building permits and grant shares. On the expenditure side, actual spending was about $107,000,000 against an amended budget that totaled roughly $113,000,000, producing a favorable variance relative to the final amended number.
Raider said the county's unrestricted fund-balance metric stands at about 5.7 months of expenditures, above the county policy threshold but trending down from prior years; some of that decline was intentional as part of the budget plan. He also noted a nonspendable balance (about $4.9 million) that represents interfund advances and long-term receivables that the board recently approved forgiving.
Enterprise and other major funds had mixed results. Raider told the committee Valley High recorded a roughly $2.2 million loss driven by higher expenses and capital work; the 9-1-1 fund reported a loss of about $875,000; the county's internal service (health insurance) fund showed a loss of roughly $325,000 tied to claims experience. The ARPA fund had a reported $1 million surplus this year, attributed to interest earnings that are treated differently than the grant principal.
"There were no material entries this year," Raider said, and he praised finance staff and decentralized department coordinators for preparing records and disclosures that minimized audit adjustments.
The county will begin single-audit procedures June 29, staff said, and the audit firm noted new GASB guidance (GASB 101 on compensated absences) required work but did not materially affect the county's results.
Next steps: single-audit fieldwork, followed by the annual comprehensive financial report filing and continued monitoring of enterprise and restricted-fund balances.
Sources: Audit presentation by John Raider (Baker Tilly) to the McHenry County Board Audit Committee on June 4; county financial packet.
"We issued a clear opinion on your financial statements," said John Raider, director at Baker Tilly, adding that the firm was able to issue finals May 21, a week earlier than the prior year because county staff were well prepared.
The audit highlights showed the county's general fund reported $103,000,000 in revenues versus a budgeted $101,000,000, a $1.1 million favorable variance driven largely by $3.1 million in higher sales-tax receipts plus stronger penalties/fees, building permits and grant shares. On the expenditure side, actual spending was about $107,000,000 against an amended budget that totaled roughly $113,000,000, producing a favorable variance relative to the final amended number.
Raider said the county's unrestricted fund-balance metric stands at about 5.7 months of expenditures, above the county policy threshold but trending down from prior years; some of that decline was intentional as part of the budget plan. He also noted a nonspendable balance (about $4.9 million) that represents interfund advances and long-term receivables that the board recently approved forgiving.
Enterprise and other major funds had mixed results. Raider told the committee Valley High recorded a roughly $2.2 million loss driven by higher expenses and capital work; the 9-1-1 fund reported a loss of about $875,000; the county's internal service (health insurance) fund showed a loss of roughly $325,000 tied to claims experience. The ARPA fund had a reported $1 million surplus this year, attributed to interest earnings that are treated differently than the grant principal.
"There were no material entries this year," Raider said, and he praised finance staff and decentralized department coordinators for preparing records and disclosures that minimized audit adjustments.
The county will begin single-audit procedures June 29, staff said, and the audit firm noted new GASB guidance (GASB 101 on compensated absences) required work but did not materially affect the county's results.
Next steps: single-audit fieldwork, followed by the annual comprehensive financial report filing and continued monitoring of enterprise and restricted-fund balances.
Sources: Audit presentation by John Raider (Baker Tilly) to the McHenry County Board Audit Committee on June 4; county financial packet.
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