Mukwonago board accepts 2025 audit, reports $277,000 boost to general fund

The Village of Mukwonago Village Board on July 15 accepted the village's 2025 audit and financial management letter following a presentation by Wendy Unger, partner at Baker Tilly.

Unger told the board the firm issued a "clean, unmodified opinion" on the audited financial statements, the highest level of assurance the auditors provide. She said the general fund added about $277,000 to its fund balance in 2025, leaving an estimated $5.5 million in fund balance at year end and an unassigned working capital contingency that the firm noted is roughly 41% of the subsequent year's budget (the village policy target is 25%).

On revenues, Unger highlighted favorable variances including $87,000 in investment income above budget, roughly $43,000 from police department services to the school district and about $77,000 from licensing and permits. On expenditures she said general government and public safety were under budget, with legal and OPEB payments among the drivers. "A very good year in the general fund," Unger said.

Unger also summarized other funds: the fire and ambulance fund added about $395,000, debt service and TID funds ended with restricted balances and the capital projects fund showed debt-financed activity with spending on village building projects and park work. She warned of an upcoming accounting standard change, GASB 103, that will alter some schedule presentations for the 2026 audit and said audit staff would work with management to ensure compliance.

The board moved to accept the audit and the Baker Tilly financial management letter and approved the action by voice vote.

Next steps: Unger offered to meet with staff to review details; the board did not direct further action during the meeting.